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ISSN No:-2456-2165
Abstract:- This research aims to analyze and describe the processes at the moment and just plain effect on short term
influence of product differentiation, customer value company success (short – term survival). Therefore, in the last
against competing superiority. This research is few decades many expert management, especially
explanatory research, sample research as many as 130 management expert strategy and marketing gurus encourage
people on business customers food and beverage franchises companies to change the paradigm of thinking and change the
in the city of Makassar, the method used is the analysis of direction of its business to be more oriented towards exit
Structural Equation Modeling (SEM). The results showed (outword).
that the differentiation of the product of the positive and
significant effect against the competitive advantage, Focus orientation out (outword) is a high concern
customer value positive and significant effect against towards customers (customer centric) individually. Customer
competing superiority. centric approach means that every business decision to put the
customer as the central point. The company had to build long-
Keyword:- Product Differentiation, customer value, and lasting relationship, making every customer feel happy
competitive advantage. (happy), feel valued (appreciated) and even feel loved (loved)
which by the Temporal and Lee (2001) referred to as
I. INTRODUCTION romancing the customers. Companies need to hear feedback
(feedback) carefully from the customers as well as conveying
Under the conditions of global competition that is super a message and talk with customers in different ways for
tight nowadays, companies that still think to gain business different customers. Companies need to build friendship,
advantage by relying on Competition-based strategy is no romance, trust, loyalty and commitment emphasize superior
longer relevant (Slater and Narver, 1994). The real customer value (Jaworsky and Kohli, 1993; Slater 1997).
competition in the 21st century this was rivalry in terms of Woodruff (1997) even added and expressed the conviction,
delivery of superior customer value (Superior Customer Value while reminding the academics and practitioners, that
Delivery) not on the price, the staff feels jerking and invite a customer value is the primary resource to achieve competitive
lot of attention so that the value of customers It seems very advantage in the future (the next source of competitive
interesting to be examined more thoroughly in the context of advantage).
business in Indonesia.
In addition to the need to focus on customer value,
In the middle of the development of increasingly companies should also focus more on the ability of a superior
demanding customers, the more intelligent, increasing customer value handed compared to what owned competitors
purchasing power and backed by the increasingly out there. Anderson (1998) States that there are three things to
sophisticated technology and coupled with the increasing note the company to submit a superior customer value: value
intensity of global competition, the company continuously benefits, value difference and value focus. How important the
attempting to search for a new marketing strategy in order to surrender value customers superior so Slater (1997) concluded
gain advantage and sustainable business success. Previously, that indeed the superior performance of the acquired company
many companies make an effort management internally so that is the result of superior customer value submission. In line
the re-engineering effort emerged, down-sizing, restructuring, with this view then the paradigm of doing business must be
and a variety of other efforts (Jensen, 2001), re-engineering changed from the competition-based strategy collar company's
efforts However, down-sizing, structuring and various other ability to use any resource that exists to consistently superior
efforts above are likely to be only able to improve business customer value submit (Barney,1991).
(Jensen, 2001) said that based on the length of III. RESEARCH METHODS
subscription customers i.e. where customers tend to move
from first-time Customer into a short-term customer, and A. Model Research
further into a long-term customer. Thus the criteria of The thinking that underlies this study substantially is that
assessment of the value of customer will be constantly differentiation of products and customer value will affect
changing on every customer every time. (Arnold and competitive advantage business franchise food and drinks. A
Reynolds, 2003) divides the characters into a character that is customer get differentiation products and the value of the
both customer social and personal. Character that is personal customer in making a purchase it will be high competitive
i.e. role-playing, diversion, self-gratification, learning about advantage in shopping. This research model can be described
new products, and others. The characters are such social: as follows:
DP 1 DP 1 DP 1 DP 1 DP 1
differentiation KB
of the product
KB
competitive
p advantage KB
KB
p
the value of KB
customers
NP NP NP NP NP
Fig 2:- Path Coefficient Estimation: results of the relationship of Product Differentiation (X 1) and the value of customers (X 2)
against Competing Superiority (Y)