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increased by expanding or improving product andor service benefits, by reducing the price, or by combination of these elements. Companies with
cost advantage can use price as a competitive weapon. Knowledge of the customer combined with innovation and creativity can lead to a total
offering that offers superior customer value. If the benefits and value are strong enough by customer, a company does not need to be the low-price
competitor to win customer.
2. Customer Value Measurement
According to Kotler and Keller 2009:161 forming of customer loyalty can be done by creating value that accepted by customer represent
the difference between the prospective customer‘s evaluation of all the benefit and also the costs of an offering and the perceived alternatives.
Value of the customer offering can be increased by some combination of raising economic, functional or emotional benefits andor reducing one or
more of the various types of costs.
Can be seen from the equation below:
Value V = Benefit B Cost C
Where: V = Value
B = Benefits product, service, personnel, and image company C = Cost monetary, time, energy and psychological
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According to Rostamy 2009 the following components create total customer benefit, including product benefit, service benefit, personnel
benefit, and image benefit, which are: a. Product benefit
Product benefit represents the benefit accepted by consumer at the time of consuming product or service. Product benefit, including product
variety, easy repaired and cost components. b. Service benefit
Service is accepted benefit by consumer in the form of moment service buy and consumes product and service. Service benefit, including the
appearance of the stores, service waiting time, services processes and service information.
c. Personnel benefit Personnel benefit
is benefit given by company‘s personnel to customer after happened purchasing decision of goods and services. According
to Tschohl 2006 personal benefits are the individuals beliefs about what are desirable to themselves. They are self-centered; that is,
personal values are closely linked to needs. Personal benefits are enduring beliefs which guide various actions and judgments across
specific situations. Hence, personal benefits are more abstract and may be generalizable easier than values of actions. Personnel benefit
including personnel
skills and
knowledge, responsiveness,
communication and collaboration and friendliness components.
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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
