CREATING CUSTOMER VALUE

Customer, the buyers of the product, have a variety of brands and products to choose from before they make a purchase decision of choosing the desired brand. They invest within the bounds of search, costs, knowledge, mobility and income. Thus, they decide to purchase the product that gives them the maximum value. Customer value is given two different views by Philip Kotler, as given in the below figure- one being the total customer value and the other being the total customer cost.

Total Customer Value:

The satisfaction that a customer gets on the purchase decision of a product is called as the total customer value (i.e.) the benefit a customer gets out of the purchase. The various factors that constitutes Total customer value are,

·         Image Value
·         Personnel Value
·         Service Value
·         Product Value

The customer value provided by Bingo are stated below.

ü  It offers a wide range of flavours that are unique and tasty. The quantity of chips provided by Bingo is higher than its competitors like lays
ü  Each category of the brand has a unique value of customer need differentiation. It caters to various needs of the customer
ü  The brand Bingo is a sub-brand of ITC, one of the country’s leading market. Thus, consumers trust for the product and a good image is built.

Total Customer cost:

Total customer cost refers to the benefit a customer gets for the payment he makes for a product or a service. Here, the customer will see if their money is spent worth on the particular product. Total customer cost is a cost spent on the following entities.

·            Monetary Cost (the price of the product)

·           Time Cost (time consumed to buy a product)

·           Energy Cost (energy spent to buy a product. Energy cost is criticised to be of less depth in this subject)

·           Psychic Cost (other the psychological factors)

Total customer cost spent for a Bingo are stated below

ü    Bingo is available in most of the stores from small scale to large scale in a city. Thus the time cost spent is low

ü    Bingo comes in various prices (Rs. 5, 10 and 15) and is nearly equal to that of its competitors.