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Measuring customer value and market dynamics for new products of a firm: an analytical construct for gaining competitive advantage

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  • Rajagopal

Abstract

There have not been many contributions emerging in the past addressing the measurement of the customer value as an intangible asset of the firm, though substantial literature is available discussing the customer relations and loyalty building perspectives. This paper attempts to critically examine the available literature on the subject, discuss a model that provides a framework for analysing the associated with customer value and to identify potential research areas. A basic premise of the paper is to argue that the firms should focus on maximising total customer value and customer satisfaction which are interdependent in the decision-making process. The framework of the construct is based on a model, which integrates all aspects so as to maximise the potential of the organisation and all its subsystems to create and sustain satisfied customers. The paper also discusses the customer value gaps in the process of marketing new products.

Suggested Citation

  • Rajagopal, 2006. "Measuring customer value and market dynamics for new products of a firm: an analytical construct for gaining competitive advantage," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 8(3/4), pages 187-205.
    • Handle: RePEc:ids:gbusec:v:8:y:2006:i:3/4:p:187-205
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    References listed on IDEAS

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    1. Perraudin, William R. M. & Sorensen, Bent E., 2000. "The demand for risky assets: Sample selection and household portfolios," Journal of Econometrics, Elsevier, vol. 97(1), pages 117-144, July.
    2. Paul Ingenbleek & Marion Debruyne & Ruud T. Frambach & Theo M. M. Verhallen, 2003. "Successful New Product Pricing Practices: A Contingency Approach," Marketing Letters, Springer, vol. 14(4), pages 289-305, December.
    3. Ulf Johanson & Maria Mårtensson & Matti Skoog, 2001. "Measuring to understand intangible performance drivers," European Accounting Review, Taylor & Francis Journals, vol. 10(3), pages 407-437.
    4. Hans H. Bauer & Maik Hammerschmidt & Matthias Staat, 2004. "Analyzing Product Efficiency – A Customer-Oriented Approach," Microeconomics 0402004, University Library of Munich, Germany.
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    Cited by:

    1. Rajagopal, 2006. "Fiscal Policy and Growth: The Case of the Spanish Regions," Economic Issues Journal Articles, Economic Issues, vol. 11(1), pages 9-24, March.

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    More about this item

    Keywords

    aggregate returns; customer value measurement; market coverage; market penetration; model construct; estimation; profitability; new product management; market dynamics; competitive advantage; intangible assets; customer satisfaction; decison making; new product marketing.;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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