This involves the following five capabilities :

• Understanding customer values.
• Creating customer value.
• Delivering customer value.
• Capturing customer value.
• Sustaining customer value.

Customers are value maximizes they form an expectation of value & act on it. Buyers will buy from the firm that they perceive to offer the highest customer delivered value, defined as the difference between total customer value & total customer cost.

Total customer satisfaction :

A buyer’s satisfaction is a function of the products perceived performance & the buyer’s expectation. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied & if the performance exceeds expectations, the customer is highly satisfied or delighted.

Recognizing that high satisfaction leads to high customer loyalty, many companies nowadays are aiming for TCS- TOTAL CUSTOMER SATISFACTION. For such companies, customer satisfaction is both a goal & a marketing tool.