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d. Image benefit Including credibility, technology excellence and ability to satisfy
future needs. According to Kotler and Keller 2009:162, total customer cost is the
perceived bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the given market offering, including
monetary cost, time cost, energy cost and psychological cost. a. Monetary cost is the cost of which is released by customer in the form
of money at the time of getting and consuming product or service. b. Time cost is the cost of which is released by customer in the form of
time at the time of getting and consuming product or service. c. Energy cost is the cost of which is released by customer in the form of
energy at the time of getting and consuming product or service. d. Psychological cost psychic and mind buyer is the cost of which is
released by customer in the form of mind to get product and at the time of consuming product or service.
3. Factors That Formed Customer Value
In identifying sacrifice and benefitexpense, consumer do not only considering functional things or performance but also social and any
factors emotionally Sheth et al., 1999; and Soutar and Sweeney, 2001 quoted by J. Brock Smith and Mark Colgate 2007:8. Therefore, the
investigation of customer value consists of functional value, social value and emotional value.
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a. Functional Value Functionalinstrumental value is concerned with the extent to which a
product good or service has desired characteristics, is useful, or performs a desired function. As suggested by Woodruff 1997 in J.
Brock Smith and Mark Colgate 2007:10, three key facets of functional instrumental value, which are:
1 Correct, accurate, or appropriate features, functions, attributes, or characteristics such as aesthetics, quality, customization, or
creativity. 2 Appropriate performances such as reliability, performance quality,
or service –support outcomes, and
3 Appropriate outcomes or consequences such as strategic value, effectiveness, operational benefits, and environmental benefits.
Sheth, Newman, and Gross 1999 quoted by J. Brock Smith and Mark Colgate 2007:8 stated that functional value represents the perceived
utility of an alternative resulting from its inherent and attribute or characteristic-based ability to perform its functional, utilitarian, or
physical purposes. b. Social Value
Sheth, Newman, and Gross 1999 quoted by J. Brock Smith and Mark Colgate 2007:8 stated that social value represents the perceived
utility of an alternative resulting from its image and symbolism in association or disassociation with demographic, socioeconomic, and
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social image can be an important factor that affects consumers‘ decision making. Social value is the usefulness felt to be earned by
consumption from an alternative as result of its association with one or more specific social group.
c. Emotional Value Emotional value is expected to incorporate consumers‘ affective
responses to service stimuli in a cognitive-oriented, means-end model. In a retailing context, Sweeney and Souter 2001 quoted by Orose and
Boonchai 2011:69 found that emotional value is the strongest predictor of consumers‘ purchase intention. Chitturi, Raghunathan and
Mahajan, 2007 stated that however, it was revealed that customers place higher priority on utilitarian benefits than to hedonic benefits.
According to Eroglu, Machleut and Barr 2005 that in general, research also supports the positive influence of the perceived
emotional value of satisfaction. Sheth, Newman, and Gross 1999 quoted by J. Brock Smith and Mark Colgate 2007:8 stated that
emotional value represents the perceived utility acquired by an alternative as a result of its ability to arouse or perpetuate feelings or
affective states, such as comfort, security, excitement, romance.
Roger Palmer et al., 2007:11 stated that the value of the product to the customer can be considered in two parts:
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a. Economic value Otherwise known as ‗value in use‘, this refers not just to the initial
purchase price but also to wider areas such as switching costs, training and installation costs, ongoing cost of maintenance, depreciation and
end-of-life disposal costs. By relating economic value in use to the requirements of the customer, a higher price can often be justified.
b. Perceived value Qualitative aspects of the product such as the brand, previous
experience and reputation can all add to perceived value. Whilst product may be functionally similar, the customer may perceive one as
superior to the other.
B. CUSTOMER SATISFACTION
