May

PERCEIVED Customer value

11/01/2011

Report on

PERCEIVED CUSTOMER VALUE Course Title: Marketing ManagementCourse Code: MKT-201 Submitted to:

Nigar sultana Lecturer

Department of Marketing Jahangirnagar University Submitted by:

Group

Of

Rising StarsDepartment of MarketingJahangirnagar University Date of Submission: January 11, 2011

WE ARE......Group of Rising StarsS.LNameI.D

1Sadifa Sultan1302

2Asif Zubair1326

3Asaf Ud Daola 1327

4Md. Shariful Islam1341

5Foysal Ahmed1342

6Md. Tanbir Ahmed1965

Letter of Transmittal November 03, 2010 Nigar Sultana Lecturer Department of Marketing Jahangirnagar University Subject: Submitting the report on PERCEIVED CUSTOMER VALUE Dear Madam,

We are submitting a well-structured and comprehensive report on Perceived Customer value of Pan Pacific Sheraton Hotel Dhaka on due time. Despite many constraints like scope and access to information, we have tried to create something satisfactory.We have tried to follow your guideline in every aspects of preparing this report. We have concentrated on the most relevant and logical areas to make our report coherent as well as practical.

We hope this report will entice your kind appreciation.

Sincerely,

________________

Md. Shariful Islam

(On behalf of the group members)

Roll- 1341BBA 1st BatchDepartment of MarketingJahangirnagar University

AcknowledgementAll the praise is for Allah, the most merciful and beneficent, who blesses us with the knowledge, gave me the courage and allowed me to accomplish this task.As our assigned topic was to prepare the report on Perceived Customer Value for our course 201 of BBA program, we visited Sheraton hotel as well as websites to complete our report and its really a great opportunity for us to acquire valuable knowledge for this interesting subject. At the very beginning, we want to express our profound gratitude to our respected course teacher Nigar Sultana, to provide us with such a nice opportunity to prepare this kind of a report on Marketing Management.We would also like to take this opportunity to express our wholehearted gratitude to our fellow friends who offered encouragement, information, inspiration and assistance during the course of preparing this report.

This report suffers from many shortcomings, nevertheless we have exerted our best efforts in preparing this report. we seek excuse for the errors that might have occurred inspite of our best effort.

So lastly, we would again like to express our heartfelt thanks to our course teacher for providing the theoretical knowledge and valuable guidelines related to recruitment process.Table of ContentContentPage no

Executive Summary

1.0 Introduction 1.1 Origin of the report

1.2 Scope

1.3 Methodology

1.4 Limitations

2.0 Overview of the companyIndustry

2.1 Perceived Customer Value

3.0 Open Discussion

4.0 What is Customer 4.1 Existing Customer 4.2 Former Customer 4.3 Potential Customer

5.0 Customers and the Organization

6.0 Source of information and ideas

7.0 Challenge of Managing Customers

8.0 Customer Relationship Management

9.0 Customer Service Trends: Customer Self-Service

10.0 Conclusion

Appendix

Executive Summary

Customer perceived value is thus based on the differences between what he or she gives for different possible choices. The customer gets benefits and assumes costs. The marketer can increase the value of the customer offering by some combination or raising economic, functional or emotional benefits or reducing one or more of the various types of costs.

Customer value means different between total customer benefits and total customer cost. The total customer benefit means the combination of product benefit; service benefit, personnel benefit, and image benefit on the other hand the total customer cost means the combination of monetary cost, time cost, energy cost and psychological cost.

Sheraton Hotel provides many facilities to their customer. They provide accommodation, food, swimming pool, bar, occasionally discount and online booking and many other facilities. And it is one of the most popular 5 star hotel in Bangladesh. That is why we choose the Pan Pacific Sheraton Hotel for measuring their customer value. We visited Sheraton hotel and talk with the customers about the topics of customer perceived value. From this report we able to know about the customer value of Pan Pacific Sheraton Hotel. From our consideration, the customer value of Sheraton Hotel is very high and their customers are satisfied for their service quality and their product quality.

1.0. IntroductionCustomer perceived value: Customer perceived value is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customer benefit is the perceived monetary value of the bundle of economic, functional and psychological benefits customers expect from a given market offering because of the products, services, personnel and image involved. Total customer cost is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the given market offering, including monetary, time, energy and psychological costs. In a word, customer perceived value is the difference between what the customer is willing to pay and what he or she is actually paying. Difference between what the customers gets and what he or she gives for different possible choices. The customer gets benefits and assumes costs. The marketer can increase the value of the customer offering by some combination of raising economic, functional or emotional benefits and reducing one or more of the various types of costs. The customer choosing between two value offerings, V1 and V2, will examine the ratio V1:V2 and favor V1 if the ratio is larger than one, favor V2 if the ratio is smaller than one and be indifferent if the ratio equals one. For example, an individual wants to buy a shirt. After a huge evaluation, he is convinced with a shirt and decided to buy that one with a price of taka 500 (willing to pay). If the transaction takes place with a cost of taka 300 (actually paying), the customer will enjoy a perceived value of taka (500-300) = taka 200. Higher the customer perceived value, more satisfied will be customer.Probably for the better customer value, Coca-cola is still dominating the soft-drink industry of bd, even though there are many companies offering cola flavor at a lower price. Marketer must continue to generate more customer value but not at a cost of loss of course.1.1 Origin of the ReportThis report is generated under the academic supervision of our course teacher Nigar Sultana, Department of marketing, Jahangirnagar University. This report is prepared for our Marketing Management course. The topic is PERCEIVED CUSTOMER VALUE.

1.2 Scope In this report, at first we cover the preliminary concept of Customer value. Then we go for its practical maintenance which is the main focus of this report. We explained customer value of PAN PACIFIC SHERATON HOTEL.1.3 Research MethodologyAt first we prepared a questionnaire about the topics of perceived customer value. We want know to the customer for their product benefit, service benefit, personnel benefit, and image benefit and we want know that they pay monitory cost, time cost, energy cost, and psychological cost for this benefits through the questionnaire. We asked the customer about the product quality, service quality, another facilities and cost for assuming this kind of facilities.

We visited the Pan Pacific Sheraton hotel and we asked to the customer of this hotel about their value. We consider the regular customer of this hotel because that is why we can get real information about customer value. We also talk with the manger of the Sheraton hotel he help us very much thats why we done our work very easily. The manager also provides us some valuable administrative information.

We collecting sample by asking question. At first we go to the customer and ask them some questions about customer value like about the service, product quality, regular food item, accommodation system, another service we also ask the cost of this kind of service.

In this report we try to our level best to focus all the point of customer perceived value, we also describe all the point individually and collecting data very carefully.

For preparing this report we used Microsoft word and for presenting data very beautifully we used Microsoft excel.

1.4 Limitations

The major limitations encountered are:

Lack of experience on preparing reports.

Unavailability of the information due to their privacy. Lack of interest among customers.

Lack of primary and secondary data.2.0 Overview of the Hotel

Overview:The first renowned international five-star hotel in Bangladesh, the Dhaka Sheraton Hotel is in the citys most prestigious location, just three kilometers from the downtown business district and close to Dhakas famous Ramna Park, the Prime Minister's office, National Art Museum, and the Kurmitola Golf Course.

Retreat to our 272 guest rooms and five categories of suites relaxing in the sitting room, taking in the view, or escaping to a night in front channel surfing and watching your favorite TV shows.

Splash around in the outdoor pool, play a night game on our lighted tennis courts, relax in the steam bath, or let our 24-hour concierge arrange a wonderful day out.

Bring friends and colleagues together and savor the best of local and international cuisine at our five restaurants, or let our banquet staff help you host an event in one of our nine hospitality spaces.Sheraton HistoryFor more than 70 years, Sheraton has enjoyed a history as vibrant and spirited as the travelers we welcome. The world has changed, but one thing hasn't - travel is about bringing people together.

1937 The origins of Sheraton date back to 1937 when the company's founders, Ernest Henderson and Robert Moore, acquired their first hotel in Springfield, Massachusetts.

Within two years, they purchased three hotels in Boston and soon expanded their holdings to include properties from Maine to Florida.

1947 Sheraton Corporation of America becomes the first hotel chain to be listed on the New York Stock Exchange.

1949 With the purchase of two Canadian hotel chains Sheraton expands internationally and grows rapidly around the world.

1958 The company launches "Reservation," the industry's first automatic electronic reservations system.

1961 The first Sheraton in the Middle East debuts with the opening of the Tel Aviv Sheraton in Israel.

1963 The Macuto Sheraton Hotel opens in Venezuela, becoming the first Sheraton hotel in Latin America.

1965 Sheraton opens the doors to its 100th hotel - The Sheraton Boston.

1970 The company is the first hotel chain with a toll-free 800-number for direct guest access which is still in use today.

1985 Sheraton achieves an important milestone becoming the first international hotel chain to operate a hotel in the People's Republic of China.

1998 Starwood Hotels & Resorts Worldwide, Inc. acquires Sheraton.

2004 Sheraton introduces the Sweet Sleeper Bed.

2006 The Sheraton experienced with Microsoft debuts at five hotels around the world. The Sheraton is the connectivity hub of our lobby experience, allowing guests to work, relax, socialize or grab a snack.

2008 Sheraton Fitness programmed by Core Performance is introduced. Created in partnership with world-renowned personal training experts Core Performance, our fitness program is designed to keep guests at their peak at all times.

2008 Sheraton boasts a portfolio of more than 400 hotels in 70 countries, including a stellar portfolio of more than 60 resorts in stunning destinations worldwide.

Customer perceived value: The value of a product is the mental estimation a consumer makes of it. Formally it may be conceptualized as the relationship between the consumer's perceived benefits in relation to the perceived costs of receiving these benefits.

Total customer benefit: A benefit of creating highly satisfied (delighted) customers who are loyal to the organization is that they also spread positive word-of-mouth by, in essence, becoming a walking, talking advertisement for the firm. If there are many delighted customers spreading positive word-of-mouth communication, this then lowers the cost of promotion to attract new customers. This benefit is particularly important among professional services firms such as lawyers and accountants where word-of-mouth and reputation are key sources of information for new clients.1) Product benefit: Actual factor (cost effectiveness, design, performance, etc.) or perceived factor (image, popularity, reputation, etc.) that satisfies what a customer needs or wants.2) Service benefit: Perhaps the first and biggest benefit people get from volunteering is the satisfaction of incorporating service into their lives and making a difference in their community and country. The intangible benefits alonesuch as pride, satisfaction and accomplishmentare worthwhile reasons to serve.3) Image benefit : Many firms strive for a competitive advantage, but few truly understand what it is or how to achieve and keep it. A competitive advantage can be gained by offering the consumer a greater value than the competitors, such as by offering lower prices or providing quality services or other benefits that justify a higher price. The strongest competitive advantage is a strategy that that cannot be imitated by other companies.

4) Personnel benefit: The products and services referred to in this directory are believed to offer good value for money. However, it is the responsibility solely of each person to decide whether or not to use any such products or services. The providers of those products and services are responsible for their respective employee benefits. None of the products or services are provided by or guaranteed by the company and accordingly the company does not accept any responsibility or liability for any such products or services.Total customer cost :Total customer cost is the bundle of costs that customers expect to incur in evaluating, obtaining, using and disposing of the given market offering.

1) Monitory Cost: The total amount spends by the customers to get the desired product or services is called the Monitory Cost.2) Psychological Cost: Customers have to recognize their problems or wants, evaluate their alternatives, selects the best alternatives, post purchase behavior to get adapt with the services. For completing all this steps customers have to make some Psychological Cost.

3) Time Cost: Total time which is spent by the customers to purchase the desired products c.

4) Energy Cost: Total energy spends by the customers to get the desired products or services means Energy Cost.

Survey on Perceived Customer Value of the Dhaka Sheraton Hotel:I as well as my whole group members visited to the Dhaka Sheraton Hotel. So that we can deal with some survey on Dhaka Sheraton Hotel. This survey helps us to realize the customer value practically. Generally Customer value= Total Customer Benefit- Total Customer Cost. Total customer benefit includes product benefit, service benefit, personell benefit and image benefit. As well as total customer cost includes psychological cost, time cost, energy cost, monetory cost. We have met with the executive manager of the Dhaka Sheraton Hotel. Also, with Chief Marketing Officer to gain some practical information about the customer value provided by them. Finally we hand out survey forms to some customers of this hotel. They actively make their comments about this hotel. To analyze this survey forms filled up by the customers (participants) we have taken help of microsoft excel. By anlyzing the overall survey forms we realize the percieved customer value of the Dhaka Sheraton Hotel practically.

Model of Form provided to the Perceived Customers:Dear sir/madam,

We are the students of Jahangirnagar University, Department of Marketing. We will feel honor if you consider to fulfill the following questionnaire for completing our survey.

Survey on- customer value of Sheraton Hotel

Name: Customer No:

1. What type of product do you expect most from here?

a) Food & service

b) Honeymoon suitec) Bar

2. There are very good services (post purchase) available.a) Yes

b) Not good

c) Miscommunication

3. Are they too much expensive, comparing with the other five star hotels?

a) Expensive

b) Reasonable

c) Low cost

4. Do they provide money exchange facilities?

a) Always

b) Sometimes

c) Never

5. Do they offer their own transport facilities?

a) Always

b) Sometimes

c) Occasionally

6. Do they offer online service (room booking)?

a) Always

b) Never

c) Sometimes

7. Do they provide special cultural and traditional foods?

a) Occasionally

b) Regularly

c) weekly

8. Does their employees conduct any kind of misbehave with you?

a) Sometimes

b) Never

c) Yes

9. Are they skilled to communicate?

a) Yes

b) No

c) So So10. Why do you prefer Sheraton Hotel?

a) Service & product are better than others

b) Decoration & accommodation system

c) Offer reasonable price for living/food/recreation11. Do you recommend staying in this hotel?

a) Yes

b) Obviouslyc) Never12. Do you think they offer possible discounts or value added pricing?

a) Sometimes

b) Always

c) Never

13. Do you think their location is convenience for you?

a) Yes

b) No

c) Dont care

14. Do they take enough time to make the given order?

a) Frequently

b) Sometimesc) Late delivery

15. Are you satisfied to be a customer of the Sheraton Hotel?

a) Obviously

b) Never

c) Sometimes

16. Do they provide sufficient 24 hours room service?

a) Yes

b) No

c) Sometimes

17. Do you get full support from the Reception Desk?

a) Yes

b) No

c) Sometimes

b) 1. Define traditional physical process sequence.c) 2. What does mean ZERO set up time?

d) 3. What are the basic differences between supportive activities and e) primary activities of generic value chain?

Thank you for providing this data. . This data will be kept confidentially.Centralized Marketing Channels

Starwood propels business 24/7 through a synergy of state-of-the-art booking technology, customer contact centers and compelling online vehicles. Count on our branded websites to showcase your hotel with stunning photography and detailed information. Our skilled call center agents are always ready to provide the most personalized property and destination highlights to potential guests, describing everything from room features to weather conditions to the most enticing area attractions. Starwood Centralized Marketing Channels propel 45% of total room revenue globally and provide unrivaled cross-sell and up-sell opportunities.

Branded Web Channels

Representing every Starwood brand with enticing imagery, exceptional online support and the welcoming ease of several international languages, these sites are industry-leading booking agents. For many travelers, our websites are memorable introductions to the style and personalized hospitality of our brands.

Customer Contact Centres

Helping extend your reach around the globe, Starwood is the only major hotel company to offer brand-dedicated support at our Customer Contact Centers, which handled over 18 million telephone calls and guest interactions in 2008, providing global, toll-free phone services 24/7 in 24 languages.

MARS

Minimized Abandoned Reservation Calls (MARS) works around the clock and allows hotels to seamlessly transfer their property reservation calls to a Customer Contact Center associate to ensure that every possible booking is realized. Available for franchised hotels.

Field Marketing

Starwood Field Marketing teams work directly with hotels to provide skilled management of all online marketing channels. Proactively boosts bookings through online promotions and search engine optimization. Voluntary opt-in program in North America and select international markets.

Features & ActivitiesWe have thought of the little and big things you need to have a memorable and relaxing stay. Revive yourself with a dip in the outdoor pool, play a night game on our lighted tennis courts, relax in the steam bath, or let our 24-hour concierge arrange a wonderful day out.

Bring friends and colleagues together and savor the best of local and international cuisine at our five restaurants, or let our banquet staff help you host an event in one of our nine hospitality spaces.

Treat yourself to Sheratons VIP Lounge at Zia International Airport; it is a great way to start your onward journey. The VIP lounge is located on the second floor of the main terminal and for a small fee; you can enjoy a relaxing and pleasant environment, tea/coffee, snacks, cable TV, bathroom/shower facilities, as well as international and local newspapers and magazine. Alcoholic drinks are available at a cost.

Customer benefit

Firstly, we have to know about:

4.0 What is a Customer?

As a student of marketing, we should know that companies are giving priority to the customer, which they desire rather than satisfaction. Customer satisfaction is also the vital matter especially in the telecommunication company. In general terms, a customer is a person or organization that a marketer believes will benefit from the goods and services offered by the marketers organization. As this definition suggests, a customer is not necessarily someone who is currently purchasing from the marketer. In fact, customers may fall into one of three customer groups:

4.1 Existing Customers Consists of customers who have purchased or otherwise used an organizations goods or services, typically within a designated period of time. For some organizations the time frame may be short, for instance, a coffee shop may only consider someone to be an Existing Customer if they have purchased within the last three months. Other organizations may view someone as an Existing Customer even though they have not purchased in the last few years e.g. television manufacturer. Existing Customers are by far the most important of the three customer groups since they have a current relationship with a company and consequently, they give a company a reason to remain in contact with them. Getting these Existing Customers to purchase more is significantly less expensive and time consuming than finding new customers mainly because they know and hopefully trust the marketer and if managed correctly, are easy to reach with promotional appeals.4.2 Former Customers

This group consists of those who have formerly had relations with the marketing organization typically through a previous purchase. However, the marketer no longer feels the customer is an Existing Customer either because they have not purchased from the marketer within a certain time frame or through other indications e.g. a Former Customer just purchased a similar product from the marketers competitor. The value of this group to a marketer will depend on whether the customers previous relationship was considered satisfactory to the customer or the marketer. For instance, a Former Customer who felt they were not treated well by the marketer will be more difficult to persuade to buy again compared to a Former Customer who liked the marketer but decided to buy from someone else who had a similar product that was priced lower. 4.3 Potential Customers

The third category of customers includes those who have yet to purchase but possess what the marketer believes are the requirements to eventually become Existing Customers. As we will see in the Targeting Markets Tutorial, the requirements to become a customer include such issues as having a need for a product, possessing the financial means to buy, and having the authority to make a buying decision. Locating Potential Customers is an ongoing process for two reasons. First, Existing Customers may become Former Customers (e.g., decide to buy from a competitor) and, thus, must be replaced by new customers. Second, while we noted above that Existing Customers are the best source for future sales, new customers are needed in order for a business to significantly expand. For example, a company that sells only in its own country may see less room for sales growth if a high percentage of people in the country are already Existing Customers. In order to realize stronger growth the company may seek to sell their products in other countries where Potential Customers may be quite high.

5.0 Customers and the OrganizationFor most organizations understanding customers is the key to success while not understanding them is a recipe for failure. It is so important that the constant drive to satisfy customers is not only a concern for those responsible for carrying out marketing tasks; satisfying customers is a concern of everyone in the entire organization.

Whether someones job involves direct contact with customers (e.g., salespeople, delivery drivers, telephone customer service representatives) or indirect contact (e.g., production, accounting), all members of an organization must appreciate the role customers play in helping the organization meets its goals. To ensure everyone understands the customers role, many organizations continually preach a customer is most important message in department meetings, organizational communication (e.g., internal emails, website postings), and corporate training programs. To drive home the importance of customers, the message often contains examples of how customers impact the company.

6.0 Source of Information and IdeasSatisfying the needs of customers requires organizations maintain close contact with them. Marketers can get close to customers by conducting marketing research (e.g., surveys) and other feedback methods (e.g., website comments forms) that encourage customers to share their thoughts and feelings. With this information marketers are able to learn what people think of their present marketing efforts and receive suggestions for making improvements. For instance, research and feedback methods can offer marketers insight into new products and services sought by their customers. Affects Activities Throughout Organization For most organizations customers not only affect decisions made by the marketing team but they are the key driver for decisions made throughout the organization. For example, customers reaction to the design of a product may affect the type of raw materials used in the product manufacturing process. With customers impacting such a significant portion of a company, creating an environment geared to locating, understanding and satisfying customers is imperative. Needed to Sustain the OrganizationFinally, customers are the reason an organization is in business. Without customers or the potential to attract customers, a company is not viable. Consequently, customers are not only key to revenue and profits they are also key to creating and maintaining jobs within the organization.

7.0 Challenge of Managing CustomersWhile on the surface the process for managing customers may seem to be intuitive and straightforward, in reality organizations struggle to accomplish this. One reason for the struggle is that no two customers are the same. What is appealing to one customer may not necessarily work for another. For instance, a marketer may change how it issues coupons to customers by reducing the frequency of issuing coupons by regular mail and instead directing customers to electronic coupons found on its website. The marketer makes this move to encourage customers to visit the website more often with the hope it will lead to cost savings (e.g., sending out traditional coupons by mail requires postage expense), allow the marketer to acquire more customer information (e.g., monitor their activities when they visit the website), and give the marketer the opportunity to sell more product to the customer (e.g., special promotional messages on the website).8.0 Customer Relationship ManagementIn order to overcome the challenges faced as they attempt to cultivate and manage customers many marketers have turned to a business concept known as Customer Relationship Management (CRM). CRM is a strategic approach whose goal is to get everyone in an organization, not just the marketer, to recognize the importance of customers. Under CRM the key driver for marketing success is to treat "good" customers in a way that will increase the probability they will stay "good" customers. This is accomplished in part by ensuring that a customer receives accurate information and has a consistent and satisfying experience every time he/she interacts with a company.

While CRM is generally used to manage Existing Customers, it also has application for other customer groups. For instance, CRM is used to help identify Former Customers that may hold potential to become customers again. This is often possible due to the amount of information that is obtained and subsequently retained when Former Customers were considered Existing Customers. Additionally, CRM can serve an integral role in helping to locate Potential Customers. As we will explore in the Targeting Markets tutorial, one method for doing this is to use information contained in CRM to determine important characteristics that are exhibited by Existing Customer and use this information to pursue new customers in untapped customer markets who have similar characteristics.

Computer technology plays a key part in carrying out CRM. A proper technology-based system is needed so that nearly anyone in an organization that comes into contact with a customer (e.g., sales force, service force, customer service representatives, accounts receivable, etc.) has access to necessary information and is well prepared to deal with the customer. But CRM is not only about utilizing high-tech products. CRM requires a strong organizational commitment that includes extensive training for all employees.

But while maintaining close and consistent relationships with customers through all contact points makes good business sense, accomplishing this has often been a challenge. Numerous problems, from technology failures and lack of communication between contact points as well as lack of adequate employee training or outright employee resistance, have derailed many CRM efforts.9.0 Customer Service Trends: Customer Self-Service

Marketers have seen the customer service process evolve from an area that received only marginal attention into a primary functional area. In response to customers demands for responsive and reliable service, companies are investing heavily in innovative methods and processes to strengthen their service level.

For instance, one major trend in customer service is the move by companies to encourage customers to be involved in helping solve their own service issues. This can be seen in retail industries where self-service ranges from customers placing their own grocery products in shopping bags all the way to having customers do their own checkout including scanning products and making payment. Also, as we will soon discuss, customers needing information are being encouraged by companies to first undertake the effort themselves often by visiting special company-provided information areas. Only after they have explored these options are customers encouraged to contact customer service.

Image benefit

Psychological cost

Personnel benefit

Energy cost

Service benefit

Time cost

Product benefit

Monitory cost

Total customer benefit

Total customer cost

Customer

Perceived

Value