Many academic studies in the past have focussed on how to create value for businesses in terms of adding profit to the bottom line through performance, and many argue that adding value for the client is also viewed as a profitable business strategy. This strategy translates as a win-win business relationship since long-term relationships ensure customer loyalty, customer retention and repeat business. In the services sector, it is difficult to quantify the worth or value that a particular service has since services are intangible products. The perception of value of such a service is known as “perceived value” since value recognition rests with the consumer who attempts to quantify the worth of that service. It is generally accepted in the services sector that establishing long-term, mutually beneficial, meaningful business relationships add value for the client and helps them to attach a value to the services that company provides. A company cannot establish such relationships without the help of its employees who represents the face of the organisation and implements the value adding strategy on the organisation’s behalf. Recent studies have begun to address this, examining value creation in business relationships in the context of the sale of tangible goods. The process of value creation for customers in services relationships remains underresearched. Perceived value explains why customers choose one particular service over another, why service companies gain competitive advantage by maintaining genuine longterm customer relationships, and why “the personal touch”, created through emotional attributes such as trust, caring and empathy, adds value from customers’ perspective. This dissertation presents a study of perceived value from the perspective of the customer within the context of the delivery of a credence product in a services relationship model. Using grounded theory methodology; following in-depth interviews with consumers of general insurance, a number of customer-value creation dimensions for businesses have been identified. Parallel interviews with members of staff from the supplier company add a further perspective. This research demonstrates how organisations or suppliers in the services industry can add value when delivering a credence product in a services relationship context. It is believed that an understanding of the value-adding dimensions can be implemented to create opportunities to build value for customers, with commensurate benefits for suppliers. Following analysis of the interviews held with each buyer, a total of six value dimensions are identified in the findings chapter. Each dimension is individually described, discussed, and illustrated with quotations from customers and supplier’s staff. Other issues relating to value arising from the interviews are examined in the discussion chapter. Three areas for further research are proposed in the conclusion.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8740 |
| Date | January 2007 |
| Creators | Allie, Hisham |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | 89 pages, pdf |
| Rights | Nelson Mandela Metropolitan University |
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