HOW NEW CUSTOMER VALUE CAN BE CREATED, AND EXISTING CUSTOMER VALUE CAN BE ADVANCED IN AN ORGANIZATION

(A CASE OF OLA AUSTRALIA)

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1.0 Introduction

            Customer value is defined as the level of satisfaction experienced by a customer as a result of undertaking an action relative to the cost of that action[1]. In the car sharing industry, the given action refers to the exercise of an individual renting a car for a short period. Conversely, the cost is the amount of money that is forfeited by a customer so that to access the car rental services. Customer value elements include cost, time, place, form, experience, performance and problem-solving[2].

·         Performance – measures the impact of customer value

·         Time - establishes when customer value is created,

·         Price - identifies the cost of expenditures paid for services used by customers, 

·         Place - customer value focuses on a specific target,

·         Form – represents the best alternative that will benefit the key targets, 

·         Experience – focuses on the experience of customers, and

·         Problem-solving.

The creation of customer value at Ola Cabs is supported by the company’s customer service, marketing, sales, operations, and so on because these factors affect the perception of customers. The company creates customer value when the cost of ownership is less than the experience of the customers.

2.0 Customer value propositions concerning Ola Cabs

            Ola Cabs formation of customer value is essential to success of the company’s effective marketing strategies and customer relations. The different elements of customer value result in the realization of product valuation, competitive insight, and customer intelligence[3]. Customer value proposition helps Ola Cabs to deliver an acceptable statement of products' value as elaborated below;

a)      Price

This element relates to the operations of Ola Cabs as it involves the realization of the total expenditures paid to the company for the services rendered. The company also incurs expenses that are not paid to it as the service provider referred to as the cost of operations. In customer value proposition, the basis for the value is as a result of price.

b)     Place

Ola Cabs targets a specific market. The company targets intended users of cab services as individuals who will be experiencing value proposition. Predominant users are also targeted, and finally, the company focuses on crucial target users that share the same characteristics[4].

c)

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