The Development of Customer Value in the Small Medium Enterprises (SMEs)


Customer value is the evaluation done by customers to assess the usefulness gained from products or services for the necessary cost. This is the key to success because many companies can increase their sales with customer value and price. This research is related to customer value and small to medium enterprises or UKM in Surabaya with dimensions from consumer worth including extrinsic and intrinsic cues, visual appeal, excellence, efficiency, and price satisfaction. This sample uses 100 respondents for data analysis using a double regression method. The research results show that extrinsic and intrinsic cues, excellence, and price satisfaction significantly influence customer value, while the variables of visual appeal and efficiency do not significantly influence customer value.



Keywords: customer value, extrinsic and intrinsic cues, visual appeal, excellence, efficiency, price satisfaction

[1] Akshay, R. R. and Monroe, K. B. (1988). The moderating effect of prior knowledge on cue utilization in product evaluations. Journal of Consumer Research, vol. 15, pp. 253–264.

[2] Anderson, J. C., Narus, J. A., and van Rossum, W. (2006). Customer value propositions in business markets. Harvard Business Review, vol. 84, no. 3, pp. 90–99.

[3] Bowen, P., Cattell, K., Jay, I., et al. (2011). Value management in the South African Manufacturing industry: Exploratory findings. Management Decision, vol. 49, no. 1, pp. 6 28.

[4] Ciptono, F. (2011). Pemasaran Jasa, pp. 374–376. Bayumedia Publishing.

[5] Grewal, D., Monroe, K. B., and Grishna, R. (1998). The effects of price comparison advertising on buyers’ perceptions of acquisition value, transaction value, and behavioural intentions. Journal of Marketing, vol. 62, pp. 46–59.

[6] Holbrook, M. B. (1996). Customer value – A framework for analysis and research. Advances in Consumer Research, vol. 23, pp. 138–142.

[7] ISBM. (2012). Insights into action: ISBM B-to-B Marketing Trends. Institute for the Study of Business Markets, University Park, PA: Pennsylvania State University.

[8] Ilicic, J. and Webster, C. M. (2015). Consumer values of corporate and celebrity brand associations. Qualitative Market Research: An International Journal, vol. 18, no. 2, pp. 164–187.

[9] Munnukka, J. and Järvi, P. (2012). The price−category effect and the formation of customer value of high-tech products. Journal of Consumer Marketing, vol. 29, no. 4, pp. 293–301.

[10] Munnukka, J., Järvi, P., and Outi, U. (2013). Impact of service quality dimensions on the formation of customer value in B to B services. Marketing Intelligence & Planning, vol. 31, no. 3, pp. 286–299.

[11] Keränen, J. and Jalkala, A. (2014). Three strategies for customer value assessment in business markets. Management Decision, vol. 52, no. 1, pp. 79–100.

[12] Landroguez, S. M., Castro, C. B., and Cepeda-Carrio ´n, G. (2011). Creating dynamic capabilities to increase customer value. Management Decision, vol. 49, no. 7, pp. 1141–1159.

[13] Lindgreen, A., Hingley, M. K., Grant, D. B., et al. (2012). Value in business and industrial marketing: Past, present, and future. Industrial Marketing Management, vol. 41, no. 1, pp. 207–214.

[14] Liozu, S. M. and Hinterhuber, A. (2013). Pricing orientation, pricing capabilities, and firm performance. Management Decision, vol. 51, no. 3, pp. 594–614.

[15] Macdonald, E. K., Wilson, H., Martinez, V., et al. (2011). Assessing value-in-use: A conceptual framework and exploratory study. Industrial Marketing Management, vol. 40, no. 5, pp. 671–682.

[16] Mathwick, C., Malhotra, N., and Rigdon, E. (2001). Experiential value: Conceptualization, measurement and application in the catalogue and internet shopping environment. Journal of Retailing, vol. 77, pp. 39–56.

[17] Ostro ¨m, A. L., Bitner, M. J., Brown, S. W., et al. (2010). Moving forward and making a difference: Research priorities for the science of service. Journal of Service Research, vol. 13, no. 4, pp. 4–36.

[18] Payne, A. and Frow, P. (2005). A strategic framework for customer relationship management. Journal of Marketing, vol. 69, no. 4, pp. 167–176.

[19] Payne, A. and Holt, S. (2001). Diagnosing customer value: Integrating the value process and relationship marketing. British Journal of Management, vol. 12, no. 2, pp. 159–182.

[20] Ridwan, M. S. (2017). Planning practices: A multiple case study in the highperforming banks. Journal of Organizational Change Management, vol. 30, no. 4, pp. 487–500.

[21] Ridwan, M. S. and Marti, J. (2012). The study on strategic planning and organizational performance in the regional government owned banks in Indonesia. International Journal of Humanities and Applied Sciences (IJHAS), vol. 1, no. 3, ISSN 2277 – 4386.

[22] Terho, H., Haas, A., Eggert, A., et al. (2012). ‘It’s almost like taking the sales out of selling’ – Towards a conceptualization of value-based selling in business markets. Industrial Marketing Management, vol. 41, no. 1, pp. 174–185.

[23] Perrea, T., Krystallis, A., Engelgreen, C., et al. (2017). Much too new to eat it? Customer value and its impact on consumer-product relationship in the context of novel food products. Journal of Product & Brand Management, vol. 26, no. 6, pp. 616–630.

[24] Ulaga, W. (2011). Investigating customer value in global business markets: Commentary essay. Journal of Business Research, vol. 64, no. 8, pp. 928–930.

[25] Woodruff, R. B. (1997). Customer value: The next source for competitive advantage. Journal of the Academy of Marketing Science, vol. 25, no. 2, pp. 139–153.