Market-based Management

S I X T H E D I T I O N Market-Based Management Strategies for Growing Customer Value and Profitability Roger J. Best Emeritus Professor of Marketing University of Oregon Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Acquisitions Editor: Erin Gardner Director of Product Development: Ashley Santora Director of Marketing: Maggie Moylan Executive Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Senior Editorial Project Manager: Kierra Bloom Editorial Assistant: Anastasia Greene Production Project Manager: Clara Bartunek Creative Art Director: Jayne Conte Cover Designer: Bruce Kenselaar Manager, Visual Research: Beth Brenzel Manager, Rights and Permissions: Zina Arabia Manager, Cover Visual Research & Permissions: Karen Sanatar Lead Media Project Manager: Lisa Rinaldi Full-Service Project Management: Kailash Jadli/Aptara®, Inc. Composition: Aptara®, Inc. Printer/Binder: Edwards Brothers Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: Times Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2013, 2009, 2005, 2004, 2000 Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458. Many of the designations by manufacturers and seller to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Best, Roger J. Market-based management : strategies for growing customer value and profitability/ Roger J. Best.—6th ed. p. cm. Includes index. ISBN-13: 978-0-13-038775-2 ISBN-10: 0-13-038775-4 1. Marketing--Management. I. Title. HF5415.13.B46 2013 658.8—dc23 2011037795 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-038775-4 ISBN 13: 978-0-13-038775-2 To Robin, Oliver, Mary, Mike, and Mitchell CONTENTS Preface xvi About the Author xxiii Acknowledgments xxiv PART I ■ MARKET ORIENTATION AND MARKETING PERFORMANCE 3 CHAPTER 1 CUSTOMER FOCUS, CUSTOMER PERFORMANCE, AND PROFIT IMPACT 5 Customer Satisfaction and Profitability 5 Customer Focus and Profitability 6 How to Underwhelm Customers and Shareholders 6 Customer Focus, Customer Satisfaction, and Profitability Building a Strong Customer Focus 9 7 Customer Satisfaction—A Key Marketing Performance Metric 13 Measuring Customer Satisfaction 13 A Wide-Angle View of Customer Satisfaction 14 De-averaging Customer Satisfaction and Customer Profitability 15 Managing Customer Dissatisfaction 16 Dissatisfied Custom