Customer value stands as a cornerstone for the prosperity and endurance of any organization. Understanding and analyzing what drives customers to a business is pivotal for maintaining market share and fostering growth. This study delves into the intricacies of customer value, exploring methods such as direct communication and periodic surveys to comprehend customer preferences and loyalty. A unique supermarket experiment revealed that customers are drawn to abundant choices, even in a slightly disorganized setting, challenging conventional beliefs about product presentation. The study also highlights the psychological aspect of customer value, exemplified by the innovative pricing strategies of fast-food giant McDonald’s. By employing psychological pricing through combo-meals, McDonald’s creates a perception of value for customers, contributing to their satisfaction and loyalty. This research emphasizes the significance of unraveling the customer’s psyche to identify and enhance the factors that truly create value in their eyes.
Strategies and Insights for Business Growth
Customer value is something that drives the inflow of customer to a business or to a organization,
customer organization is one of the important factor for the growth and sustainability of the
organization (McFarlane, 2013). It is through customer value an organization could hold market share
when it comes to business. To analyze customer value is understand what a customer wants. Also to
study a customer in detail why a particular customer is loyal towards an organization or a company in
particular. There are many ways in which a business could earn the customer value through its process.
The most important of them all is to understand what drives customer into an organization, for this a
simple talk with the customer is enough to understand their likes and dislikes about the company they
are loyal to (Bae, 2012) . Another way is to take a survey in monthly or in an annual period of time to
understand their drive as a customer, that what attracts them and what not.
For example, in a recent study to understand the supermarket behavior of a customer, an experiment
was conducted. Day one of the experiment, the researchers arranged the supermarket shabbily but with
more quantity of products, the entire shelves were crammed with different products. And on the second
day, they reduced the quantity drastically and arranged the product more presentable way. To the
surprise of the researchers, the day one of the research where items are crammed in quantity came as
the more productive day with more number of sales than the day two when there was less number of
products. And the reason behind, that the customer always get attracted to places where they think
there more choices for them to select an item than less number of items, even the items were neatly
arranged (Louis,2013). In New Delhi, India, small retailers who are selling foot-wears and other boxed-
products, usually collect the empty box, just to showcase in front of their shops for the passing
customers to think or to believe the shop has larger number choices or selections. Through this the
customers feel satisfied while purchasing in places they think or believe that there are more choices or
quantity.
In the same way the customer’s, choices and minds are intricate to understand what values them.
Hence it is also important to evaluate and determine the factors in which what creates that value for the
customer towards that particular organization, that is understanding the very value proposition of a
business is another important factor, that all business should analyze and discover (Shapouri and
Keramati, 2015).
The above value proposition can be comprehended through the example of modern fast-food chain
where they use psychological pricing to attract more customers to their organization or restaurants.
McDonalds is one of the best example that can be projected for creating customer value through
psychological pricing system. That is most of their menus are displayed on the screens above the
counter, also they have mastered the technique of psychological pricing through combo-meals in which
they tag multiple food items and make them appear as cheaper than choosing the individual items
separately. Hence, while purchasing the customer or the consumer thinks that they made a smart choice
while choosing combo-meal, for this reason they feel satisfied.