Customer Value Strategy and Customer Value Management for Competitive Wood-Flooring Manufacturers : Litterature review

This literature study describes the potential contributions of Customer Value Strategy and Customer Value Management if they are implemented in wood floor manufacturing, as the "new" approach towards competitiveness. The growing market for wood floor products is creating an opportunity for the industries in this sector to make economic value of their offerings. The customers of flooring products often have a prejudice that wood-flooring materials are costly compared to other types of flooring material. This is apparently caused by a high recurring cost during the use of the product that makes the life cycle cost (LCC) of wood floor is amongst the highest, despite the lower initial cost of the product. In the other hand, the customers are not always sensitive to the price if they are aware about the benefits they get exceed their sacrifices. This is the main reason that the wood floor manufacturer should focus on customer value rather than barely on product price. The cost would still be important consideration, but the perspective needs to be extended to include costs during the life cycle of the product (or the period of ownership). Improving the benefits and reducing the sacrifices are the core idea of Customer Value Strategy and Customer Value Management. These concepts require an understanding of what the customer value and would value as well as excellent performance on product, process, and production. A proper implementation of Customer Value Strategy and Customer Value Management would strengthen manufacturing competitiveness