Study on Customer Value Measurement Based on Utility Theory

Abstract

Based on the results of the previous studies on customer value construct and measurement in recent years, theoretical framework on customer value construct are advanced, which is applicable for consumable markets. Following this framework, the approach of conjoint analysis is practiced in customer value measurement based on utility theory. Meanwhile, this paper also demonstrates the process of customer value measurement. Finally there is an empirical research focused on the cell phone market among college students, which can support the framework we made and the feasibility of this methodology. The empirical study has shown that for college student consumers, price is the most important influencing factor, followed by face, brand, and quality, and the last one is brand. Meanwhile, according to the virtual market shares, we can get the information that which products will be much more popular than others in cell phone market among the college students, which can helps enterprises efficiently to determine proper orientations for product designing and marketing in the future.