Summary: Delivering Customer Value Based on Service Proces: the Example of Tesco.Com

Only available on StudyMode
  • Download(s) : 141
  • Published : April 11, 2012
Open Document
Text Preview
Delivering Customer Values
Summary for “Delivering Customer Value Based on Service Process: The Example of Tesco.com”

* Table of Contents
1.0Introduction3
2.0The Ten Key Points in the Study4
2.1Customer Switching4
2.2Efficient Service Process Leads to Customer Loyalty4
2.3Importance of Service Process5
2.4Tesco.com’s Service Process5
2.5Tesco.com’s Customer Value Delivery5
2.6The Four Ps: Product6
2.7The Four Ps: Price6
2.8The Four Ps: Place6
2.9The Four Ps: Promotion7
2.10Conclusion7
References8

Introduction

This report summarizes and identifies the key points for the article “Delivering Customer Value Based on Service Process: The Example of Tesco.com”. The main objective of the paper is to investigate how Tesco delivers customer value in an effort to attract new customers and preserve previous customers. Tesco, founded by Jack Cohen in 1929, is a UK-based global supermarket chain, popular for its “Everyday low prices strategy”. It is the first company to introduce grocery online shopping through its website Tesco.com from the notion that customer would prefer online purchasing from the store they usually go to in person.

Two central conceptions that are at the very heart of marketing and delivering customer value are service quality and satisfaction (Spreng and Mackoy, 1996). In a study conducted by Shemwell et al. in 1998 (cited in Ismail et al., 2009 p. 30), it is stated that in order to maintain the high level of competition in today’s business world, the delivery of high quality service is the key to customer satisfaction and loyalty. By offering different service processes for its customers, businesses can deliver better value than its competitors.

*
* 2.0The Ten Key Points in the Study
The authors have specifically chosen the example of Tesco.com; therefore, this paper would mainly summarize how Tesco.com delivers value by creating a good shopping experience for its customers. The next few paragraphs will attempt to analyze the article in ten sections, according to the main points the article tried to highlight:

2.1Customer Switching

With more choices and greater convenience presented before them, customers have the increasing tendency to switch between retailers. Loyalty is not as concrete among customers as it used to be: they are in a constant search to find better choices. If a retailer with characteristics better-suited to the customer’s preferences is found then they would easily switch. This is the main reason for the rising competition between businesses, including Tesco.com. According to Mohsan et al., (2010), customer satisfaction is a direct determine factor in the achievement of customer loyalty, which would ensure their satisfaction and preventing them from switching to other retailing outlets.

2.2Efficient Service Process Leads to Customer Loyalty

Businesses desire to maintain long-term relationships with customers, so creating superior value for them is a vital step in achieving these goals. A recent study (Ismail, et al., 2009) found that proper execution of service quality features such as assurance, reliability, responsiveness, empathy and tangibles increase customers’ perceived value about quality features. This leads to higher chances of achieving customer satisfaction. Ultimately, improving service processes and providing superior value of products and services should lead to more satisfied and loyal customers (Ma and Ding, 2010). 2.3Importance of Service Process

According to Goldstein et al. (2002), the service concept for a company is the expectations of both the business and customer of what the service should entail, and which customer needs will it satisfy. It is how the company works as a whole in an effort to link the customer, process and materials to deliver the best possible customer value. It plays an important part in maintaining customers and creating lifetime loyalty....
tracking img