Customer Value and Its Consequences: A Proposed Model

Abstract

Customer value (CV) is a powerful tool for improving customer loyalty and satisfaction. The purpose of this research is to use insights from the literature to develop a conceptual model and to suggest propositions for empirical testing. The theories underpinning the concept of customer value were identified. A conceptual model relationship showing customer value (customer perceived value, CTV-customer transfer value; word of mouth, referrals, customer value co-creation, service, quality, image, price, utilitarian, hedonistic, emotional value, social value, functional value), organisational climate and organisational outcomes (financial performance, strategic performance, business sustainability and productivity) nexus was developed. The authors suggested sixteen propositions for empirical validation. The study did not empirically test the propositions but only indicated that they should be tested in future research. The authors recommended that structural equation modelling should be used in analysing and testing the propositions.