A Study on Improving Customer Value Based on the Effect of Word of Mouth

A Study on Improving Customer Value Based on the Effect of Word of Mouth

INTRODUCTION

With the globalisation of the economic system and market competition, the status of customer has also evolved fundamentally. Customers determine the competitiveness of a company in the market as well as its ability to continue operation. In order to have a long-term friendly relationship with customers and develop sustainable profitability, many companies pass on to customers more value that better meets their needs, thereby driving customers to repeat purchases. Thus, how to use marketing tools to effectively enhance the enduring customer value when customers use products of a company has become a heated topic for marketing scholars. Several scholars propose sales promotion and word-of-mouth marketing, which are currently the main marketing methods.

LITERATURE REVIEW AND RESEARCH HYPOTHESES

Current research on customer value is mainly carried out from three different perspectives. The first is to research and define customer value from the perspective of customers, mainly from the value firms create for customers. Proposed the overall assessment of the utility of a product or service after weighing the benefits perceived by the customer and the cost of acquiring the product or service and named it customer-perceived value. Proposed customer transfer value, that is, the difference between total customer value and total customer cost. The second is to study customer value from the perspective of enterprises, typically represented by customer lifetime value (CLV). CLV refers to the total revenue that each buyer may create for the enterprise in the future. The process from the beginning of the customer–enterprise relationship to its end is a development trajectory that changes over time, which is called the customer lifecycle. It has been found that the reciprocal relationship between firms and customers, and customers’ contribution to the profits and expenses of companies exist throughout the entire customer lifecycle. The third is to study customer value from the joint perspective of customers and firms. The focus is on the value exchange process between the two, which not only realises the transactions required by customers and firms, but also forms some other economic and non-economic relationships. Few influential research results from this perspective have been achieved.

Research Hypotheses

Overlapping Marketing and Need Matching

Compared the interaction effects of personal–organisational value matching, personal–work attitude matching and personal decision-making ability matching on job satisfaction. Work attitude matching proved to have the greatest predictive effect on job satisfaction, while value matching had a certain effect and decision-making ability matching had no significant effect. Proposed that with the emergence of product homogeneity, enterprises should carry out overall product innovation. There was an interactive relationship between core product innovation and consumers’ basic needs, and continuous innovation of formal products and additional products could meet consumers’ linear and attraction needs. Argued that the link between consumer needs and product innovation required the organic integration of market driving and market-driven models. It is critical for companies to develop both market-driving and market-driven skills, and to understand when and in what ways they should work together. Proposed that new digital technologies mean that firms need to define new marketing actions that create value for consumers who are also co-producers. Based on this, the following hypothesis is proposed:

H1a: Overlapping marketing promotion management has a

positive impact on need matching.

RESEARCH METHOD

Measurement

Overlapping Marketing

This study referred to the sales promotion scale by and developed a theoretical marketing management scale for the traffic data user group, with a total of 8 items divided into word-of mouth marketing and sales promotion. For the processing of the two types of data on sales promotion and “word-of-mouth marketing,” their product divided by 5 was used to obtain the appraisal data on overlapping marketing.

RESULTS

Overall Index Model Analysis

In this study, the goodness-of-fit test was used to evaluate the fitness of the structural equation model (SEM), including the average path coefficient (APC), the average R square (ARS), and the average variance inflation factor (AVIF). The APC and ARS of the model were both significant (p < 0.001) and the AVIF was less than 5, indicating that the overall fitness of the model met the requirements.

DISCUSSION AND CONCLUSION

Conclusion

This study created a model for continuous customer value creation based on overlapping marketing, verified scales for need matching, user adhesion and overlapping marketing appraisal, and explored the impact of China’s smart terminal business on continuous customer value creation under the effect of overlapping marketing. The results proved that overlapping marketing could enhance enduring customer value creation by improving need matching and user adhesion.

Best Regards,
Mian Mukarram