Superior customer value in the new economy concepts and cases

SECOND EDITION Superior Customer Value In The NEW ECONOMY Concepts and Cases SECOND EDITION Superior Customer Value In The NEW ECONOMY Concepts and Cases William C.Johnson • Art Weinstein CRC PRESS Boca Raton London New York Washington, D.C This edition published in the Taylor & Francis e-Library, 2005 “ To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to http://www.ebookstore.tandf.co.uk/.” Library of Congress Cataloging-in-Publication Data Johnson, William C (William Charles), 1954– Superior customer value in the new economy: concepts and cases/William C.Johnson and Art Weinstein.—2nd ed p cm Rev ed of: Designing and delivering superior customer value/Art Weinstein and William C.Johnson ISBN 1-57444-356-9 (alk paper) Customer services— Management Consumer satisfaction I Johnson, William C II Weinstein, Art Designing and delivering superior customer value, 1999 III Title HF5415.5.W442 2004 658.8′12–dc22 2004041820 This book contains information obtained from authentic and highly regarded sources Reprinted material is quoted with permission, and sources are indicated A wide variety of references are listed Reasonable efforts have been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage or retrieval system, without prior permission in writing from the publisher The consent of CRC Press LLC does not extend to copying for general distribution, for promotion, for creating new works, or for resale Specific permission must be obtained in writing from CRC Press LLC for such copying Direct all inquiries to CRC Press LLC, 2000 N.W Corporate Blvd., Boca Raton, Florida 33431 Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation, without intent to infringe Visit the CRC Press Web site at www.crcpress.com © 2004 by CRC Press LLC No claim to original U.S Government works ISBN 0-203-50149-7 Master e-book ISBN ISBN 0-203-61920-X (Adobe e-reader Format) International Standard Book Number 1-57444-356-9 (Print Edition) Library of Congress Card Number 2004041820 DEDICATION To my mother, who understood value when she gave sacrificially through the years WCJ As always, to Sandee and Trevor, with love AW PREFACE Designing and delivering superior customer value is the key to successful business strategy in the 21st century Value reigns supreme in today’s marketplace and marketspace; customers will not pay more than a good or service is worth Consider the remarkable success of service and information providers such as Amazon.com; Dell Computer; eBay; FedEx; General Electric; Hewlett-Packard; Intel; JetBlue Airways; Lexus; Nordstrom; Wal-Mart; and Yahoo!—these companies truly know how to maximize value for their customers According to the Marketing Science Institute, managing customers and understanding customers are top-tier research priorities—ranked third and fifth, respectively—for the years 2002 through 2004 The nine most important subtopics comprising the former area are: ■ Customer retention ■ Measuring the lifetime value of a customer ■ Customer relationship management (CRM) ■ Managing loyalty to brand, channel, and employees ■ Customer expansion ■ Customer loyalty measurement ■ Customer acquisition ■ Managing customer experiences ■ Managing customer relationships The four key subtopics in the latter area include: ■ Understanding/anticipating customers’ needs ■ Assessing the value to customers of firms’ actions ■ Customer experiences ■ Communicating customer knowledge within the firm1 These topics and much more are explored in the second edition of Superior Customer Value in the New Economy Market-focused management posits that organizations should provide outstanding value to customers because they are the most important organizational stakeholders A recent study of chief marketing and financial officers in Fortune 1000 firms affirmed this proposition Of 16 organizational goals mentioned, both groups of top executives rated customer satisfaction as the primary business goal The CMOs rated customer value creation second, while the CFOs listed this third (long-term profit was cited second for CFOs and third for CMOs).2 We have been researching, consulting, speaking, and writing about customer value in service markets for more than years In addition, we have developed and teach the definitive MBA course on the subject entitled “Delivering Superior Customer Value.” We are truly convinced that developing the right value proposition (combining service, quality, image, and price or S-Q-I-P™) must be the top priority for management A customer-driven business culture stresses service management; continuous quality improvement; product and process innovation; and the use of Internet-based technologies to provide focus and direction for the organization and ensure that outstanding customer value will be offered This, in turn, results in enhanced market performance Unfortunately, caught up in the daily pressures of running complex service and information-based organizations, many managers lose sight of customers’ needs and wants As a result, the delivered experience often falls far short of customer expectations Great companies consistently meet and exceed customer desires This book offers a blueprint for benchmarking world-class service providers and how to respond more effectively to customer demands The second edition of Superior Customer Value was produced from the latest thinking of the business and academic communities It summarizes and extends leading marketing and management work in the crucial area of customer value (CV) Building on a three-pronged approach to the study of CV—concepts, cases, and inchapter applications—the book serves as a comprehensive, integrative, and highly practical marketing management resource It explores important marketing planning and strategy issues that emphasize relationship management strategies to keep customers satisfied and delighted, as well as “best practices” on customer service, organizational responsiveness, and market orientation This perspective positively affects value-creating organizations and management in fast-changing and highly competitive global service industries Superior Customer Value was written to provide marketing practitioners, managers and executives, and scholars (professors and graduate students) with an informative, state-of-the-art guide to designing, implementing, and evaluating a CV strategy in service and information-based organizations The material appearing in the book has been discussed at length in our MBA course “Delivering Superior Customer Value.” In addition to the thousands of MBA students who have been exposed to these ideas, hundreds of managers have benefited from our interpretation of the new customer value paradigm via executive seminars and marketing doctoral courses.* Each chapter in this book includes useful figures, tables, customer value checklists and insights, end-of-chapter discussion questions, and additional reference material Superior Customer Value is organized into five parts: * For further discussion regarding the design of the MBA course “Delivering Superior Customer Value,” see Weinstein, A (1998) How to create an innovative MBA course, Mark Educator, Spring, Part I—Customer Value—the Building Blocks (Chapter through Chapter 3) is the foundation material This section examines critical business issues such as the importance of creating value for customers, customer orientation, and value-creating processes and operations Part II—Creating Value through Services and e-Commerce is offered in Chapter through Chapter In addition to our revised chapter on service quality, this section features two new chapters on the service-dominant new economy and online service quality Part III—Planning and Implementing a Winning Value Proposition (Chapter through Chapter 9) explains how to build successful value propositions, pricing techniques, and strategies for adding and promoting value Part IV—Delivering Long-Term Superior Value to Consumers (Chapter 10 through Chapter 11) wraps up the text/concepts portion of the book with important material on customer retention and relationship marketing Part V—Customer Value Cases provides 18 detailed, “hands-on” examples of how successful organizations create value for their customers This section opens with a framework for analyzing business cases via the customer value funnel approach introduced in Chapter More than half of the cases are completely new for the second edition of the book These include: Boston Market Delicato Family Wineries Dow Corning Edward Jones FedEx “Herding Cats” across the supply chain JetBlue Airways Lexmark International Office Depot Walgreens Popular returning cases from the first edition of the book, most of which have been revised, include: The Grateful Dead Harrah’s Entertainment Nantucket Nectars Newell-Rubbermaid Pizza Hut Publix Super Markets StatePride Industrial Laundry Time Insurance Each case reveals an in-depth look at a dominant customer value theme (e.g., responding to change, being customer oriented, customer loyalty, etc.) and offers end-of-case questions to guide the analyses The cases provide excellent learning opportunities to model effective customer value behavior and practices We look forward to learning more about your customer value marketing experiences Feel free to contact us to discuss any of the material in our text Bill Johnson and Art Weinstein Professors of Marketing, H.Wayne Huizenga School of Business and Entrepreneurship Nova Southeastern University 3301 College Avenue Ft Lauderdale, FL 33314–7796 1–800–672–7223 (phone) 1–954–262–3965 (fax) billyboy@huizenga.nova.edu art@huizenga.nova.edu REFERENCES 2002–2004 Research Priorities, (2002), Cambridge, MA: Marketing Science Institute, http://www.msi.org/msi/rp0204.cfm Hall, P.L and Williams, T.G (1998) Marketing/finance executives’ personal and business value perspectives: implications for market-focused management, Int J Value-Based Manage., 95, 125–157 Index delivering customer value, Merrill Lynch business processes, 34 Metcalfe, Robert, 222 Micro Motions delivering customer value, Microsoft adding value, 170 Migrators, 122 Mission statements customer value, Morgan Stanley Group world-class products, 120 Morham, Eric, 241–242 wine business, 258 Morris, Mitch, 316 MORTN (Market Orientation) Scale, 21 Motorola adding value, 169 Multichannel strategy creating Office Depot, 360 Music industry See also specific companies case study, 289–296 N Nabisco relationship marketing, 206 NAICS, 63–64 NAICS hierarchy, 64 Naisbitt, John, 25 Nantucket NectarFizz, 345 Nantucket Nectars case study, 335–345 competitive position, 343 corporate culture, 338–340 growth and performance, 344–345 participatory management style, 339 revenues, 1993 to 1998, 344 Navigation e-service quality, 110 Neeleman, David, 316–317 Negroponte, Nicholas, 6l Nelson, Bruce, 362 New economy competing successfully, 70–72 374 Index 375 components, 63 emergence, 67–70 indicators, 62 perceptions and realities, 69 practicing relationship marketing, 220–225 and service sector, 61–73 Newellizing Rubbermaid, 355–356 Newell Rubbermaid, Inc., 347 New image, 125 New market space (NMS) captured illustration, 332 competitive marketing tool, 329–332 components, 327 creating, 327–333 definition, 328–329 parameters illustration, 329 strategic business concepts, 332 New recovery firms interesting experiences for customers, 72 New value, 203 NMS See New market space (NMS) Nonmarketing, 206 Nordstrom customer care, 150 customer commitment, 18 customer service, North American industrial classification system (NAICS), 63–64 O OEM, 305 Office Depot case study, 357–362 financial data, 358 value proposition, 128–129 Office supplies industry See also specific companies case study, 327–333, 357–362 Ogilvy-One USP, 166 Online service, 35 quality for luxury purchases, 103 U.S household, 387 buying trends, 387 Index Operational excellence, 119 Operationalizers Dow Corning, 268–279 Optimizers Dow Corning, 268–279 Organization, 175 Organizational processes key, 35–41 Original equipment manufacturer (OEM), 305 P PaineWebber business processes, 34 Pareto chart, 47, 52, 53 Part-time marketers, 206 Patient retention tactics, 197 PDCA (plan, do, check, act) framework, 42–43 People, 325 CRM, 219 Perceived image, 135–136 Perceived quality Nantucket Nectars, 335–345 product, 134–135 CVAT, 134 service CVAT, 132–133 defined, 132 Perceived value, 13 based pricing, 136–137 CVAT, 136 Performance, 325 Personalization e-service quality, 109 Personal responsibility for knowledge, 123 Personnel customer-oriented service organizations, 28 Peters, Tom, 117 Pewter power, 125 Pharmaceutical industry See also specific companies case study, 407–415 Phillip Morris price reductions, 156 PIMS, 92 Pioneers, 122 Pizza Hut case study, 365–372 376 Index declining U.S market share, 367 history, 366–368 Plan, do, check, act framework, 42–43 Planning CRM, 219 and implementation cross-company, 214–216 process, 43–44 Plan phase Deming cycle, 43–44 Platform CRM, 220 Point of contact evaluate value, 206 Porter, Michael, 38, 395 Positioning levels, 166–168 Postsale services, 82 Price, 6–7, 140–142 determined, 140 how buyers evaluate, 142–143 relating to value, 140–142 vs relative quality, 145–146 S-Q-I-P approach, 6, 121–123, 166, 186 Price clarity e-service quality, 111 Price comparisons CNET Shopper.com, 158 Price customization, 149–150 Price differentiation, 150 strategies, 151 Price-driven costing, 147–148 Priceline.com reverse auctions, 208 Price-optimization software, 157 Price-profit elasticity, 156 Price/quality strategies, 153 Price-sensitive market, 146 Price-setting responsibility, 147 Price-value grid, 151 Pricing future issues, 157–159 good decisions, 153–156 intelligent, 143 methods, 147–153 pressures sources, 155 377 Index strategic, 143–147 strategy reflect perceived value, 147 to target market’s demand elasticity, 144 Printing industry See also specific companies case study, 327–333 Process assessing effectiveness, 41–42 assessment, 45 categories, 38 creation customer value, 33–55 CRM, 219 definition, 35 designing, 403–404 driven, 37 flow outcomes Boston Market, 233–239 improvement tools, 47 jobs, 37 management and measurement, 37 vs marketing cycle, 40–41 owners, 39 priority, 38 quality improvement planning and analyzing, 402–403 team formation, 401–402 and value link between, 34 Process view, 37 vs traditional functional view, 36 Proctor and Gamble customer and supplier relationships, 211 delivering customer value, market orientation, 22 Product adding value, 168–172 leadership, 119 positioning levels, 167 types, 66 Product quality and innovation, perceived, 134–135 CVAT, 134 Profitability, 19 378 Index 379 Profit impact of market strategy (PIMS), 92 Project team Time Insurance, 402 Promotional effectiveness analysis, 176 Prosperity, 325 Ps-product, price, promotion, and place, 10 Publix Super Market, Inc case study, 375–391 company earnings, 382 company philosophy, 376 history, 376–378 industry rankings and awards, 380–382 mission statement, 383 online, 386–389 success factors, 378–380 Punctuality, 317 Purchasing patterns customers, 190 Q QFD, 79 Quality, 4, 6–7, 337 and business cycle, 80 customers’ point of view, 90 definition, 76–77 continually changing, 95–96 five-step approach, 77 forces that influence, 75–76 improving, 92, 94–96 Time Insurance, 401–405 industry leaders, 91 philosophy, 42 vs relative price, 145–146 search, 76 service transaction, 82 S-Q-I-P approach, 6, 121–123, 166, 186 why, 90–94 Quality function deployment (QFD), 79 Quick-service, home-cooking concept Boston Market, 235 R Ralston’s Sure model, 187 Reached, Frederick, 184–185 Redefining buyer groups, 330–331 Reference prices, 142 Regency, frequency, and monetary value (RFD) analysis, 190 performing steps, 191 Index Relationship information sustains, 212 tracking, 222 Relationship-building goal, 202 Relationship enables rankings, 210–211 Relationship marketing, 202 definition, 203 Edward Jones, 277–278 illustration, 207 Nabisco, 206 practicing new economy, 220–225 Relationship variables, 209 Relative price vs relative quality, 145–146 Reliability Internet purchasers, 104 Research priorities list, vii Responsiveness e-service quality, 110 Restaurant industry See also specific companies case study, 233–239, 365–372 Retail partners, 71 Retention marketing, 10, 19 maximizing through value, 183–198 Revenue sharing Apple Computer, 204 Reverse auctions Priceline.com, 208 RFD analysis, 190 performing steps, 191 Ritz-Carlton, 90 adding value, 169 customer service, Road Runner Sports customer orientation, 24–25 Rodgers, Buck, 183 Rubbermaid case study, 347–356 diversified, 352 environment, 350–351 financial performance, 348 history, 348–350 international operations, 354 380 Index 381 new product strategy, 352 performance, 350 product quality and innovation, strategy, 351 technology, 351 vision, 347 20-year summary financial performance, 348 Ryder customer lifetime value, 13 e-Channel solutions, 205 S Safeway price-optimization software, 157 Sales-oriented company, 20 SAS software, 163 Satisfiers, 89 Savin Corporation training process, 54 Scatter diagram, 47, 51, 52 Schroter, William (Bill), 383 Schultz, Don E., 173, 174 Scott, Tom, 335 Search quality, 81 Sears service-profit chain, 92 Segmentation, targeting, and positioning (STP marketing), 10 Segmentation system four-tier usage, 191–192 Selling vs market orientation, 19–26 Seltzer, Bill, 360 Service, 6–7 definition, 65–66 levels, 89 S-Q-I-P approach, 6, 121–123, 166, 186 Service classification matrix, 67 Service firms create value, 64–67 Service flow diagram, 46 Service innovation Walgreens, 411–412 Service marketing areas exemplar companies, 49 Service-profit chain (SPC), 92 illustration, 93 Service providers dimensions, 28 Index Service quality assessing, 81 assessing using dimensions, 83 cardinal principles, 85–88 core benefit, 88–89 defining and managing, 75–97 determinants, 104 gaps, 84–85 guidelines, 81–90 perceptions CVAT, 132–133 defined, 132 expectations, 83 probing for improvement, 94–95 process, 88–89 Service sector and new economy, 61–73 Service transaction quality, 82 Service with a smile Publix Super Markets, Inc., 383–389 SERVQUAL, 85, 87 Settlers, 122 Sharma, Aron, 61–62 Sheraton hotel check-in, 127 Shipping corporation See also specific companies case study, 281–287 Simmons College Graduate School of Management value statement, 44 Simplify offering adding value, 170 SIMS Walgreens, 410–411 Six sigma, 77 Slater, Stanley F., Slywotzky, Adrian, 201 Smith, Jack, 17 Solving customer problems adding value, 170 Sony market orientation, 22 Southwest Airlines, 316, 325 customer commitment, 18 customer orientation, 24 customer service, image, 125–127 382 Index 383 price-differentiation, 150 value statement, 44 Southwest effect, 148 SPC See Service-profit chain (SPC) SpeedPass customer value created, 7–8 S-Q-I-P (service, quality, image, and price) approach, 6, 121–123, 166, 186 Starwood Hotels & Resorts Six Sigma, 77 Statepride Industrial Laundry case study, 393–399 STP marketing, 10 Strategic groups targeting, 330 Strategic implications, 128–129, 146 Strategic inventory management system (SIMS) Walgreens, 410–411 Strategic marketing information, 47 Strategic pricing, 143–147 Supermarket industry See also specific companies current trends, 389–390 customer lifetime value, 13 Supplier criteria, 216 Supplier relationships and customer FedEx, 209 Supply chain case study, 38, 305–312 channel master, 308–309 collaborative team approach, 309–310 defining problem, 306–307 lessons learned, 310–311 proposed solution, 307–308 integration Walgreens, 410–411 relationships improving, 214–217 Supporting services e-service quality, 106 Sutherland, Rory, 166 SWOT analysis, 193 T Taco Bell customer worth, 223 Index Tampa Bay Buccaneers image, 125–127 Technological leadership adding value, 170 Technology, 71 Time new market space (NMS), 331 Time Insurance case study, 401–405 increase effectiveness, 401 new organizational structure, 404 results, 404–405 Time-Warner and AOL, 11 Toll-free customer service number, 368–369 Total quality management, Toyota house of quality model, 80 Toys “R” Us value proposition, 128–129 TQM (total quality management), Traditional functional view vs process view, 36 Traditional marketing vs customer-centric approach marketing function, 24 Traditional vs relationship marketing, 204–208 illustration, 205 Training process, 54 Transaction-orientation, 202 TRICON Global Restaurants, 367 Trust customer and supplier relationships, 209 Tupperware customer care, 150 Two-way dialogue, 175 U Understanding customers, vii Uniform industry case study, 393–399 Unique selling proposition (USP), 163–166 U.S employment data 2001, 65 U.S job outlook 2010, 66 U.S manufacturing losses 1960–2002, 65 384 Index U.S Post Office value statement, 122 U.S service sector projected job growth, 64 subsectors, 64 U.S wine exports growth, 249 User interface e-service quality, 107 USP creates and communicates value, 164 and differentiation, 163–166 V Vacation Break delivering customer value, Value, vii, 3–58, 4, 140–142 adding frequency marketing incentives, 170 affordability, 168 building and communicating Delicato Family Winery, 241–258 creation, 220, 395 through relationships, 201–225 definition, 5–6, 393 maximizing through retention marketing, 183–198 measure and improve Dow Corning, 272–273 and process link between, 34 strategies for adding and promoting, 163–176 Value-added approaches, 171–172 Value-added marketing strategies, 163 Value-added program designing, 172–173 Value-added services implementing program, 172–173 JetBlue Airways, 319–323 Value-based marketing Dow Corning, 264–266, 271 Value-based pricing, 150–151 discovering opportunities, 152–153 perceived, 136–137 CVAT, 136 Value chain, 38 385 Index analysis application, 397–399 definition, 395 illustration, 396 Statepride Industrial Laundry, 393–399 Value creation, 166–167 organization, 10–11 sources of e-business, 120 Value deployment matrix, 43 Value disciplines, 119 and market leadership, 118–120 Value hierarchy, Value map customer, 143 preparation, 144 Value Matrix, 10 Value maximization, 13 premise, 12 Value position assessing, 129 Value pricing example, 148 McDonald’s, 150 Value proposition, 117–130 applications and guidelines, 120–121 basis for competitive strategy, 117–118 building, 121–123 with changing market, 128–129 critiquing, 121 definition, 120 designing, 122 developing, 123–127 examples, 119 FedEx, 122 Value statements, 44 U.S Post Office, 122 Value webs, 222 Versleijen-Pradhan, Rasika, 221 Virgin Enterprises global image, 123 image, 125–127 Virtual value chain, 38, 39 Vision statements customer value, W Walgreens 386 Index case study, 407–415 growth technology and alliances, 409–410 history, 407–408 web site, 414 business performance, 414–415 Wall of sound, 292 Wal-Mart extending hours, 71 price-differentiation, 150 pricing, value, 152 Warranties adding value, 171 Watson, Gregory, 77 Web based companies See specific companies Webster, Frederick, 117 Webvan Publix Super Markets, Inc., 386 Welch, Jack, 33, 91 Wellmark Inc Six Sigma, 77 Wine consumption per capita, 243, 244–245 US vs other countries, 243 Wine industry See also specific companies distribution channels, 247–248 globalization, 248–250 history, 242–243 market segmentation, 247–248 Winn Dixie price-optimization software, 157 Wooster Rubber Company, 348 World-class supplier criteria, 216 X Xerox customer satisfaction, 90–91 delivering customer value, Y Yahoo fee-based services, 68 Yoga card, 320 387 Index Z Zane, Chris, 220 Zane Cycles value creation, 220 Zero-based budgets, 174–175 Zero defects, 79 388 [...]... Service Sector and the New Economy 53 5 Defining and Managing Service Quality 66 6 Managing e-Service Quality 89 PART III: PLANNING AND IMPLEMENTING A WINNING VALUE PROPOSITION 7 Defining and Refining the Value Proposition 102 8 Communicating Value through Price 121 9 Strategies for Adding and Promoting Value 142 PART IV: DELIVERING LONG-TERM SUPERIOR VALUE TO CUSTOMERS 10 Maximizing Value through Retention... objective exists: focus primarily on maintaining and upgrading customer relationships (including generating referral business) and, secondarily, grow the business by finding new customers In many cases, this might mean investing 80% or more of the marketing budget on customer loyalty and retention programs; the balance would be directed to activities designed to win new customers (note that many companies... papers on customerfocused topics and marketing strategy issues He was the founder and editor of the Journal of Segmentation in Marketing Dr Weinstein has consulted for many high-tech and service firms CONTENTS PART I: CUSTOMER VALUE THE BUILDING BLOCKS 1 Customers Want Top Value 2 2 Being Customer Oriented 14 3 Process and Customer Value 28 PART II: CREATING VALUE THROUGH SERVICES AND E-COMMERCE 4 The Service... truly innovative firms try to shape or change markets by eliminating, adding, or modifying the players in a market and their functions.4 Companies such as Amazon.com, CNN, FedEx, IKEA, Southwest Airlines, Starbucks, and Wal-Mart rewrite industry rules and compete in new market arenas Their unique business ideas and systems deliver large leaps in customer value. 5 For further insight into the market-driving... evidenced in levels I, II, and III demonstrate that market intelligence and knowledge are an ongoing, iterative, interactive, and integrated process If business performance does Superior customer value in the new economy 12 not meet corporate objectives, strategic or tactical changes are mandated The organization (level III) can adjust internally via rethinking its overall direction; implementing training and. .. not last in the long run unless they change their philosophy and start creating superior value for their customers THE MARKETING CONCEPT REVISITED The marketing concept is that guiding business doctrine advocates a company-wide effort (interfunctional coordination) to satisfy customers (customer orientation) and organizational objectives (in particular, profitability) The traditional marketing concept—summarized... appeal to the next generation of Speedpass holders and thus customer value is created for all participating parties CUSTOMER VALUE: MARKETING MANAGEMENT IMPLICATIONS Maximizing customer value is an evolving challenge for service marketers Visionary companies are responding to the new breed of smarter, more demanding customers by rethinking some of their traditional job functions, using customer value- based... Many individuals provided valuable input toward the preparation of Superior Customer Value in the New Economy First and foremost, we thank our Nova Southeastern University associates In particular, Randy Pohlman, dean of the Huizenga School reenergized us to think about customer value in marketing in a new light Preston Jones, associate dean of academic affairs, has provided us encouragement and the. .. thank the thousands of MBA students who have benefited from taking the “Delivering Superior Customer Value course at NSU since 1996 In addition, hundreds of doctoral students and executive seminar participants in marketing have provided us a tremendous learning laboratory to sculpt and fine-tune our customer value- based marketing philosophy Finally, we especially thank you for reading Superior Customer. .. marketing mindset advocating e-commerce Exciting e-businesses such as Amazon.com, Cisco Systems, Dell Computer, eBay, Expedia, Priceline.com, and Yahoo! achieved remarkable success by pioneering innovative and better ways to create value for customers with changing needs and wants These businesses survived the dot.com meltdown of 2000 by creating winning strategies based on superior value for their customers ...SECOND EDITION Superior Customer Value In The NEW ECONOMY Concepts and Cases SECOND EDITION Superior Customer Value In The NEW ECONOMY Concepts and Cases William C.Johnson • Art Weinstein CRC PRESS... Sector and the New Economy 53 Defining and Managing Service Quality 66 Managing e-Service Quality 89 PART III: PLANNING AND IMPLEMENTING A WINNING VALUE PROPOSITION Defining and Refining the Value. .. upgrading customer relationships (including generating referral business) and, secondarily, grow the business by finding new customers In many cases, this might mean investing 80% or more of the marketing