at best only a small number of retailers can pursue a cost leadership
strategy, i.e. emphasize value and convenience, for example, through an
everyday-low-price strategy – a strategy fundamentally at odds with increasing
hedonic and social value. Others must, therefore, differentiate by creating hedonic and
social value, the costs of which must be recovered via higher product prices or a greater
quantity of sales per customer. Creating hedonic value is common. Upscale stores, for
example, have maze like floor layouts, put-up extensive seasonal adornments, and let
consumers use/play with product offerings. Our insights suggest expending effort that
boosts one’s status or self-esteem could be a viable differentiation strategy as it would
create social value. Using narrowcast media directed toward specific segments and
incorporating messages that appeal to esteem needs are means of doing so. Another is
to train and retain “expert” salespersons that dress and act like the store’s desired
clientele. Thus, by becoming aware of the utilitarian, social and hedonic dimensions
that comprise total customer value, and the benefits that customers associate with
these dimensions, the concept of customer value can be used as a managerial tool in
planning advertising and promotions, segmentation strategies, managing store
atmospherics, and in staging integrated and memorable shopping experiences.