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CREATING VALUE FOR CUSTOMERS - Coggle Diagram
CREATING VALUE FOR CUSTOMERS
"Value is the customer's perception of the balance between benefits received from a product or service and the sacrifies made to experience those benefits"
When do customers experience value
Value in exchange
Realized when products are exchanged for money
Value in use
Value is realized only when customers possess, use, consume, or interact with the goods or services
Value in experience
Customers can experience value when they interact with or are exposed to any marketing, sales, or service output of the firm throughout the customer journey
Operational excellence
low prices to customers
Product leadership
the best products, services or solution
Customer intimacy
adapt offers to meet the needs of individual customer based on customer insight
Customization
tailor products or services to meet individual customer preference or specifications
Product
Price
Place
Promotion
People
Process
Physical evidence
Mass customization
use of standardized production processes to create varied and even individually tailored value propositions to order
Match to order/ Locate to order
Bundle to order
Assemble to order
Make to order
Engineer to order
Jag Sheth and colleagues: 5 value types
Functional value
Functional, utilitarian or physical performance
Emotional value
The offering arouses feeling or emotional state
Social value
Connectedness to one or more specific social groups
Epistemic value
The offering arouses curiosity, provide novelty, or satisfy a desire for knowledge
Conditional value
Specific contextual circumstances facing customers