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International Journal of Research in Engineering, Science and ManagementVolume-1, Issue-12, December-2018www.ijresm.com ISSN (Online): 2581-5792725Understanding the Concept of CustomerPerceived Value from Both OrganizationsPerspective and Customers Perspective A Case Study on Coca ColaSunny Grewal1, Dhanpat Grewal21MBA Student, Department of Marketing Management, Westminster International College/Cardiff MetropolitanUniversity, Subang Jaya, Malaysia2Associate Professor, Department of Economics, Government Post Graduate Nehru College, Jhajjar, IndiaAbstract: Customer perceived value is important concern forany company and its stakeholders i.e. customers, employees,shareholders, partners, Government and Non-Governmentagencies. The purpose of this case study is to study the businesspractices that accounts for consumer protection in various aspect.To study the various aspects of value exchange in businessenvironment, author chooses Coca Cola Company Malaysia. CocaCola is most consumed beverage and is operating in 200 countrieswith 1.9 Billion everyday customers. This case study will analyzethe company various practices in safeguarding consumer rights byaugmenting customer care, its social role in the host country, theadvertising ethics in communicating strong and meaningfulproduct information and the consumer privacy concerns. Theobjective of this case study is to understand the various elementsin developing and delivering superior value proposition to ensurea fair return on the purchase. This case study will also throughlight on the various elements consider important in understandingthe concept the customer perceived value from both organizationperspective and customer perspective.Keywords: Customer Perceived Value, Superior ValueProposition, Organization Perspective, Customer Perspective,Business Practices, Coca Cola, Elements of Customer PerceivedVale, Customer1. IntroductionTo realize the relationship between buyer rights and businessmorals, one looks at the end of the day to the Golden Rule.Purchasers hope to be treated with obligingness and regard. Inthis way, keeping in mind the end goal to hold up deals,business directors give careful consideration to purchasersentiment surveys, input, and mentalities. This has advancedinto fundamental understandings of consumer rights and valueperception that have been created over times to energize apositive relationship between business administration andcustomer demand. Buyers ask for specific returns, from theyearning of honest to goodness and sensible practices in thedomain of dealing with a record. Customer want to be securedwhen accepting to a lease plan or getting a thing off a store rackwhich provide a fair return of their purchase. Customer shouldbe guaranteed against any deception and should be authorizedto easily report to higher authorities with the help of customerfriendly systems. In one way or other customer encounterbusiness deals on daily and expect good return for money thatassures emotional, physical and psychological satisfactionregardless of whether we understand it or not. Client would liketo pay a sensible cost for fundamental supplies and fuel.Customer envision that our rights will be respected when wevisit a doctor s office, and expect great and sensible practices.(Universal Class, 2013).Fig. 1. Customer perceived valueCustomer Value Perception has turned into the broadestutilized idea in developing efficient marketing strategies. It isconsidered as the fundamental key to support the businessparticularly in high market rivalry. Thusly understanding itsmeasurements and the impacts on client state of mind andconduct winds up plainly essential for all marketers.(SeptaAkbar Aulia, Inda Sukati & Zuraidah Sulaiman, 2016).A. Company background1) Coca cola MalaysiaCoca Cola is the world largest and No.1 beverage companywith 500 brands. The company name is after its most popularand hard selling brand Coca Cola. The other famous brands inline are Coke Diet, Sprite, Fanta, Coca Cola Zero, PowerAde,Minute Maid etc. Over 1.90 Billion of Coca Cola lovers in 200
International Journal of Research in Engineering, Science and ManagementVolume-1, Issue-12, December-2018www.ijresm.com ISSN (Online): 2581-5792countries consume coca cola every day. Coca Cola worldwideis most favorite brand when the consumer choice is soft drink.Along with increasing business and optimizing profits thecompany is always focused to product development,community improvement and economic uplift of the country todeliver benefits to the purchase.(Coca Cola, 2016).726vitality, water and bundling in our operations, it keep ondelighting 75% of the world's shoppers with its quality, topnotch, fun, nutritious and advantageous items. In Malaysia, wePepsiCo have brands, for example, Pepsi, 7-Up, Revive,Gatorade, Mountain Dew, Tropicana Twister, and Lays potatochips. (PepsiCo Sdn. Bhd., 2017)C. Coca Cola VS PepsiFig. 2. Coca cola (share a coke campaign)Fig. 3. Coke-Pepsi rivalriesCoca Cola all over the world has initiated its new marketingcampaign that attracts all its customers and encourages them toshare coke with their loved ones. This fun giving activity haveaugmented the sales and at the gives customer a newenthusiasm. In Malaysia Coca Cola is manufacturing,marketing and distributing around 20 products. All the productsare Halal certified because Malaysia is a Muslims Majoritycountry and non Halal food and beverages are prohibited toMuslims in religion of Islam. Coca Cola is global-localCompany which means its operations worldwide are in fullcompliance with local customs, rules and regulations which hasincreased its acceptance. Coca Cola is also focused tocommunity development of the country by focusing on threearea s i.e. Women, Water and Wellbeing. These area scompletely define the company policy of being sociallyresponsible for the community development and organizationalethical culture. Organizations ethics are developed to safeguardconsumer rights. (THE COCA-COLA COMPANY, 2017).20th century is the era of information and public now is moreaware of their rights than ever before. Consumers are mastersas it is consumer who decides which business or companyshould remain in the environment and which should not.Companies exploit customer to generate profits by sometimesplaying with their emotions. It has been observed companiesalso deceit customers by showing misleading advertisementthat don’t fulfill their needs or sometime charge high pricescompared to substitute product. In such conditions it is thecustomer who is suffering from these unethical practices. Thesepractices are not just harming the customers but also thecompetitors in the industry. (Tom L. Beauchamp, Norman E.Bowie & Denis Gordon Arnold, 2009)B. PepsiCo MalaysiaPepsiCo is a world pioneer in expedient snacks, food andrefreshments home to a portion of the best cherished andleading brands the world over. PepsiCo in Asia Middle East andAfrica is the worldwide development engine, crossing morethan 92 differing nations from developing markets to underdeveloped markets. Satisfying its guarantee of being a decentcorporate subject, through more effective utilization of land,Pepsi and coke are both immediate rivals in the marketdeveloping strategies to increase their market share regardlessof the other local and international soft drink producers. Bothhave corporate partnerships with various food brands thatprovide their customers a level of satisfaction with otherassociated brands like MacDonald’s and KFC. According toEuro monitor Coca Cola Malaysia remained the main player incarbonates in 2016 with a 47% off-exchange esteem share asthe organization's deals achieved MYR 635 Million. On thecontrary PepsiCo faced decreased revenues of 8% because ofthe effect that people are leaving carbonated drinks. The greaterpart of this contains offers of its solid image Coca-Cola in colacarbonates, despite the fact that it is additionally present in noncola carbonates with the Fanta and Sprite brands, with each ofthe three of its real brands enrolling positive esteemdevelopment amid 2016. (Euromonitor International, 2018)D. Elements of customer perceived valueFig. 4. Elements of customer perceived valueAt the point when customers survey a thing, they measure itsclear impetus against the cost client is paying. Organizationshave all around focused a lot of their time and imperativesaround managing their plans, since raising expenses caninstantly bolster benefits. Regardless, that is the basic part:Pricing generally speaking contains managing a modestly littleplan of numbers, and evaluating investigation and techniquesare incredibly created. What purchasers really regard, in anycase, can be difficult to tie and rationally obfuscated. In whatway organization adequately direct regard or devise ways todeal with pass on a more prominent measure of it, paying littlemind to whether practical (minimizing time and cost) or
International Journal of Research in Engineering, Science and ManagementVolume-1, Issue-12, December-2018www.ijresm.com ISSN (Online): 2581-5792passionate (decreasing agitation, giving delight)? Diversefragments in light of research procedures are serious andsupportive gadgets, yet they are expected to test customerreactions to one-sided thoughts of critical worth—the thoughtsthat policy makers are accustomed to judging. Considering newthoughts requires figuring what else clients ought to trulyesteem. (Eric Almquist, John Senior and Nicolas Bloch, 2016)The overall product benefits are on each person's preferencesare obviously high. However all inclusive building pieces ofsignificant worth do exist, making open doors for organizationsto enhance their execution in current markets or enter newmarkets. A thorough model consumer perceived values enablesan organization to think of new mixes of significant value thatits products could convey. The right mix of strategies, pay offin more grounded client dedication, more prominent customerreadiness to attempt a specific brand, and assures sustainablegrowth.2. Coca cola elevating customer perceived valueTo ensure the fair practices and consumer protection andproduct augmentation, the Government of Malaysia enacted“The Consumer Protection Act 1999”. The law encompasses toensure the consumer rights and consumer protection from anymisleading practices to ensure satisfactory customer return.Consumer can claim more or less RM10, 000 to companies thatdeceive them with false commitments or products and servicesthat could be dangerous for their health and environment. Therealso many autonomous and government led organizations thatstruggle for consumer rights e.g. Ministry of Domestic Trade, Cooperatives andConsumerism Federation of Malaysian Consumer Association Consumer Association Penang Muslim Consumer Association of MalaysiaThe purpose of these organizations is to educate the customerand pressurizing the companies to meet the standards of productand services that serves the customer and not damage theirinterests. (It s Law, 2014). Coca Cola has strict product qualitystandards across the globe that is why anywhere in the world ithas company operated production plants to maintain the qualityunlike PepsiCo which is giving licenses to local financers.Being a global beverages leader Coca Cola has been sociallyresponsible and sometime has face criticism over productquality standards. The reason why Coca Cola sustained andbecome the market leader is due the fact that Coca Cola iscomplying with international health standards. The continuousresearch and development program has helped the company toraise product standards that no other company could compete.Coca cola is strictly following the combination of consumerprotection principle. (THE COCA-COLA COMPANY, 2017)A. Customer care1) Product safety and qualityCoca Cola is committed to deliver superior product quality727which is not harmful to health and a fair return to the price thatcustomer pay. Every day over 1.6 Billion comes to Coca Colafor refreshment by choosing different brands. Coca Cola hasmaintained highest standards of product safety and quality togive a fair return to customers. The Integrated QualityManagement (IMC) of the company is a system of qualitymanagement which strictly comply with the regulations andstandards adopted by the company across the globe.B. Facts and rumorsBig companies face more criticism when comes to productquality and safety. Customer has now easy access toinformation. The emergence of consumer protectionorganizations have raised many questions about the productsthat are harmful or possess any threat to customer health andenvironment. In 2012, a report by National Institute ofConsumption revealed that Coca Cola is using Alcohol in itsdrinks as a part of ingredients which raised many questions inconsumers mind and customer started to think that their favoritebrand is deception. But Coca Cola published its report that thetraces of Alcohol are very less which can even be found in thenatural products like potato, bread, dates vinegar etc. The tracesof Alcohol in the company beverages are 0.0048 grams/Kgwhich is even less than the traces of Alcohol found in potato.(Coca Cola, 2012)C. PackagingThe packaging of any product is the first thing that consumeror purchased encounter with. But packaging is not the onlything that satisfy consumer. Packaging should mention thecomplete information about the product. Packaging materialshould be of fine quality that not contaminated or in any wayharm the product. (T. Kotler & Lane Keller, 2011). Few yearsback Coca Cola faced consumer concerns for the use ofBiphenyl A or BPA, a chemical used to increase product shelflife, which the company is using in lining of aluminum canswhich is health risk. Since 1986 Coca Cola is using Biphenyl tokeep product safe from contamination. Worldwide over 50000products packaging contain BPA. For the customer satisfactionCoca Cola tested in packaging quality in various internationallaboratories that verified that BPA in packaging is not any riskto customers. (Coca Cola, 2012)D. ObesityObesity is one of the important concerns when it comes topublic health. Food and beverages sector have often beencriticized by the consumer protection organizations forincreasing rate of obesity especially in the youth. A report byAmerican Heart Association (AHA) revealed that lack ofphysical activity and increased consumption of junk food in allage groups is the true reason for obesity. Physical activity isnecessary in order to control obesity. With the emergence ofinnovations and technology humans are less exposed tophysical activities and exercises due to time constraints. TheMobile phones, internet, indoor video games on one hand
International Journal of Research in Engineering, Science and ManagementVolume-1, Issue-12, December-2018www.ijresm.com ISSN (Online): 2581-5792728increased human knowledge and awareness but on the otherhand it reduces time for other activities among which health ismost important. (The Coca Cola Company, 2012)3. Consumer Protection and Socially ResponsibleWith passage of time business practices have changed. Thepractices that not only fulfill consumer needs and demands bygenerating profits for the organization but also the practices thatare non-profitable and organizational share to communitydevelopment and environmental security. Coca Cola is focusedon its “Golden Triangle Rule” which means the partnership ofbusiness, government and civil society. The business itself ismeant for delivery high quality product at affordable prices, thecontribution to the economy by giving tax, creating jobs for thepublic, engaging local partners for raw materials and initiatingprograms for public wellbeing.A. Water for LifeWater is major source of life on Earth. Water is the mainingredient in beverages. Coca cola is strictly focused to theefficient use water. Coca Cola has launched its Water for Lifeprogram in partnership with the Forest Research Institute ofMalaysia to increase the water reserves for the forests andagriculture. In the State of Sabah, which has often seen waterscarcity, Coca Cola has launched its Clean Water forCommunities program with Raleigh international to provideclean water to the public of Sabah for drinking. Under thisprogram a well-organized system of sanitation is developed tohelp the villagers to live in hygienic environment and may notbecome the victim of disease. More than 20,000 people aregetting benefit from this program.(Coca Cola Malaysia, 2017)Fig. 5. Coca cola water for lifeB. Disaster relief and recoveryCoca Cola has developed one the largest distribution systemin every target market. This distribution helped it go beyond itsduties especially when to comes to social causes. During thetimes of disasters earthquakes or floods, the victims needmedication food and water for their survival. Coca Cola with itsresources and distribution networks helped the victims of suchdisasters across the world in many countries whenever itrequired. In June 2015 when earthquake hit Sabah and thevictims were surrounded with death, Coca Cola along withMalaysia Red Crescent helped the villagers by providing themwater and taking them to the safe places. Coca Cola distributedover 500 cartons of DASANI water for the disaster victims.(Coca Cola Malaysia, 2017).Fig. 6. Disaster reliefs and recoveryC. Women developmentAlmost half of the population on the planet is filled withfemale population and Coca Cola vision is to promote thishuman resource and using their abilities by empowering them.Coca Cola has initiated its worldwide program Women 5by20to increase the contribution of women in the value chain ofcompany. In Malaysia, Women 5by20 program is named asSURI (Sertai Usahawan Realisasikan Impian). Coca Cola isworking closely with Ministry of Women Malaysia andencouraging women entrepreneurs to play their role incountry s economy. Coca Cola Vision in Malaysia is toempower 20000 women entrepreneurs by the end of 2020.(Coca Cola Malaysia, 2017)Fig. 7. Coca cola women developmentD. Advertising policyAdvertising refers to the method of communication to reachthe target customers. Companies use different sources to reachits customer and address the consumer need in a way that ispersuasive and generate sales. While generating sales manycompanies advertisement commit false promises to thecustomer. Consider the example of pain killer tablet that apharmaceutical company claims to be the No.1 pain killer andmost recommended by the doctors of certain hospitals. Butwhat about the background fact i.e. the company is selling thatparticular medicine to respective hospitals at cheap rate than inthe market or compared to competitors who are offering thesame chemical formula at a bit higher price. Customers are notdoctors, may be a usual pain is not what customer thinks andafter watching the advertisement assume that particularmedicine will work for its immediate remedy. (Universal Class,2013). Ethical advertising refers to the positive communicationbetween the seller and the buyer that is rational and completeand commit fair promises about the product. Consumerfeedback and company response also considered as the ethicalpractices in business advertisement where customer can askquestions, can complain and even suggest company for thebetter performance in certain area of interest.The Coca-Cola Company is flooded with antiquity andconvention, where legacy is observed and values are stared.Coca Cola has a worldwide group of individuals cooperating tobring the family a wide cluster of drink decisions to meet
International Journal of Research in Engineering, Science and ManagementVolume-1, Issue-12, December-2018www.ijresm.com ISSN (Online): 2581-5792consumer refreshment needs each day. (The Coca-ColaCompany, 2016). The Coca-Cola Company is faithful tooffering safe, eminence drinks, marketing those refreshmentsmindfully and giving facts that buyers can trust. The Coca-ColaCompany has constantly considered important its dedication toadvertise mindfully, over the globe, over all promoting media,and over the greater part of the company products.(The CocaCola Company, 2016).729availability of product and streamlines the revenuestreams. (Dudovskiy, 2015).Fig. 9. SWOT analysisFig. 8. AdvertisingE. Consumer privacyClient protection measures are actions taken by businessassociations to guarantee that private client information is notstolen or mishandled. Since most such associations have a solidaggressive force to hold an elite access to these information, andsince client trust is normally a high need, most organizationstake some security building measures to ensure client privacy.Since they are profit making, business associations additionallycan't spend a boundless sum on insurances and stay focused - abusiness setting tends to extreme protection measures, and topush associations to share information when working inassociation. This has encouraged to numerous ethical risks andunbelievable client protection breach experiences, and hasprovoked purchaser security laws in many nations, particularlyin the European Union, Australia, New Zealand and Canada.The United States has no such law and depends on corporateclient security to guarantee shopper protection when all is saidin done.(J. Solove & M. Schwartz, 2015). With the emergenceof internet, technology and social media consumer privacy ismore vulnerable to unethical practices in the business than everbefore. Either its business to business or business to customer,customer want their information must be kept secret.The Coca-Cola Company and its partners are anxious aboutprotection issues and inform customers that how they getcustomer data, utilize and unveil data. This Privacy Policydepicts the company practices regarding data that it gathersthrough exercises that connection to thisB. Weaknesses C. Opportunities 4. SWOT analysisA. Strength Coca cola has wide range of soft drinks and snacksproducts operating under Coca Cola Flagship. Thefamous items are consumed all over the world likeCoke, Diet Coke, 100 Plus, Sprite and Fanta.Coca Cola is the 3rd most expensive brand in the worldwith annual revenues of around 90 Billion.Coca Cola has the most sophisticated distributionnetwork across every target market that ensures theThe immediate rival of Coca Cola is PepsiCo which ispresent in every market where Coca Cola is operating.The hardcore policies of Coca Cola has somehow gaveadvantage to competitors just like in India when CocaCola was forced to leave the country for not agreeingwith state Policies.The health awareness in customers has convincedmore customers to stop using carbonated drinks whichcan damage health especially in children. Coca Colashould develop non-carbonated drinks to meet thepresent day challenges. Starbuck has gain muchmarket acceptance because of the fact that customerhas reduced the consumption of carbonated drinks.Coca Cola should enhance its product research anddevelopment activities to focus on the mattersassociated with consumer health. Just like many othersocial programs it should launch a comprehensivehealth program for being socially responsible.Somehow Coca Cola has adopted the same packagingstyle for many years. Now it’s time to bring innovationin the packaging and labelling of products. “Share aCoke” has got wide acceptance and there is dire needfor more such initiative that directly engagecustomers.Coca Cola should look for acquisition so that it mightnot be victim for market crash. The acquisitions ofnon-carbonated drinks can surely elevate the financialposition of the company. (Dudovskiy, 2015)D. Threats It has been found that customers in developingcountries are more conscious about the health. That iswhy Coca Cola has seen a decrease in the salecarbonated drinks in US.PepsiCo being the immediate rival has gained muchmarket share which could be seen as potential loss for
International Journal of Research in Engineering, Science and ManagementVolume-1, Issue-12, December-2018www.ijresm.com ISSN (Online): 2581-5792 Coca Cola.The emergence of Social media has opened newdimensions for the businesses. It has also beenobserved that rivals associate negative things todefame the company by promoting negativepropaganda. Coca Cola must counter these acts toensure the customer trust. It should legally deal withsuch notorious activities to keep promoting its positiveimage.5. ConclusionSince it’s the fact the sole purpose of business is to generateprofit. But the business environment has changed. Theemergence of technology and information system helpedcustomer to be aware of their rights when making deal with thecompanies. The latest concepts in business studies haveconvinced marketers to make fair deals with prospects toprosper. Those companies who have implemented the valueperception have seen sustainable growth. Customer is the keytarget of the business and any product is made to sell andmaking profit at the same time assuring customer of a valuableexchange for their time and money. Customer always looks forfair trade and evaluates value propositions. Market competitionis another important reason that compelled businesses to holdtheir customers by offering the products that are good in qualityand competitive in price. Due to increased awareness and highexpectancy, customer is also attached to companies emotionallybecause the products and the company role in their environmentare important. Customer can easily switch and boycott anyproduct that is putting threat to their environment. TheGovernment and private organization role in developing fairpractices in the business that benefit customer and allstakeholders is also major factor that convinced marketers tothink out of the box by doing extra not only for their customersbut for the whole system. The success of Coca cola is due to thefact of its unmatchable product quality all over the world withcompetitive price ethical and continuous improving businessstrategies that helped in business growth and non., 2015. PESTEL Analysis of Mc. Donalds in Fast Food Industry.https://www.ukessays.com/Coca Cola Malaysia, 2016. Privacy /Coca Cola Malaysia, 2017. Coca Cola in the in-east-coast-statesCoca Cola, 2012. Coca Cola 2011/2012 Sustainability every-servingCoca Cola, 2016. Coca Cola ovskiy, J., 2015. Coca Cola SWOT -swot-analysis/Eric Almquist, John Senior and Nicolas Bloch, 2016. The Elements lueEuro monitor International, 2018. Carbonates in -malaysia/reportIt s Law, 2014. Consumer mer-protection.htmlJ. Solove, D. & M. Schwartz, P., 2015. Consumer Privacy and DataProtection. Wolters Kluwer Law & Business.PepsiCo Sdn. Bhd., 2017. PepsiCo (Malaysia) Sdn 00-pepsico-malaysiaSepta Akbar Aulia, Inda Sukati & Zuraidah Sulaiman, 2016. CustomerPerceived Value and its Dimension. Asian Journal of Social Sciences, 2.htmlT. Kotler, P. & Lane Keller, K., 2011. Marketing Management. 14th ed.Prentice Hall.The Coca Cola Company, 2012. Sustainability Report -about-usThe Coca-Cola Company, 2016. Responsible sustainability/2015/responsible-marketingThe Coca-Cola Company, 2017. Coca Cola Malaysia about our-company/about-coca-colajourneyTom L. Beauchamp, Norman E. Bowie & Denis Gordon Arnold, 2009.Ethical Theory and Business. 8th ed. [English] Libraries Australia:Prentice Hall.https://trove.nla.gov.au/work/7385161?q&sort holdings desc& 1545722171457&versionId 46244430Universal Class, 2013. The Relationship between Consumer Rights andBusiness business-ethics.htm
1) Coca cola Malaysia Coca Cola is the world largest and No.1 beverage company with 500 brands. The company name is after its most popular and hard selling brand Coca Cola. The other famous brands in line are Coke Diet, Sprite, Fanta, Coca Cola Zero, PowerAde, Minute Maid etc. Over 1.90 Billion of Coca Cola lovers in 200
