Content And Nature Of Value Creation

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

Define value creation and the components that can be used to determine value creation per unit. How is value creation related to competitive advantage?

The purchasing goods & services have throughout the years begun to lead to a new perception of consumer relationship and in ways businesses conduct their operations. Not only is a business concerned with the buying and selling of goods & services but to further maintain that relationship with their customers to correlate between both parties. As this being the prime functionality of businesses, each business must differentiate themselves with other businesses offering different and wholesome services, which overwhelms their competitors, thus adding their own individualistic value to the marketing

3. (TCO H) Marketers recognize that the marketing of services is different than the marketing of a product because of the different characteristics that distinguish them from physical products. How do marketers communicate the value of services to consumers? How do they make these intangible services appear tangible to the consumer? What are some marketing strategies that might be employed with services to

The customers buy services for the value they find in the “encounter” of the services.

Tangible goods, or rather manufactured goods, have been the dominant medium of exchange for centuries. However, recent decades have proved that it is no longer the case as there has been a prevalence of being service oriented (Vargo and Lusch, 2004:1-2). Services, as defined by Vargo and Lusch (2004), are  “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (p.2).” Utilizing services gives businesses an edge, a competitive advantage, particularly in an evolving competitive market, something which Metalfrio is definitely part of (Vargo and Lusch, 2004:9).  Those businesses that learn to adapt tend to do well. In addition, Vargo and Lusch (2004) write this shift to services is also a shift from producer perspective to a customer perspective (p.2). Thus, it leads to more of a collaborative effort where co-creation leads to adding value to the service rather than a product having value (Vargo and Lusch, 2004:6). Also, customers rather develop relationships with those that can provide a range of related services over an extended period of time, thus allowing businesses retain their clients for the long term (Vargo and Lusch, 2004:13). Overall, service oriented marketing is a direction that businesses should be headed towards to ensure that they can remain relevant and competitive in the

Search Alert will sell a subscription service to both B2B and B2C markets. Search Alert has developed a three stage implementation plan to bring the service to market. We broke it into three phases for multiple reasons. First, we want to reduce costs until the concept has proven value. Second, we want to monitor and perfect the technology before we bring it to the B2B market. Finally, we want to listen to our early customers to best suit their needs as well with the rest of the market.

Source : Adapted from A. Parasuraman, Valerie Zeithaml, and Leonard Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research,” Journal of Marketing, 49 (Fall 1985)

AACSB: Business Knowledge & Analytical Skills | Management: Creation of Value | Dierdorff & Rubin: Strategic & systems skills

The first topic I am going to examine in this paper is co-creation and value. Discussing the definition of the terms, and how those instruments are moulding the relationship between businesses and their consumers will be the main focus of that topic.

“Value is the customer’s assessments of the benefits of the service weighted against all the cost involved.” (Johnston and Clark, 2008, pg. 44). In a service organisation, operations determine the balance between minimising organisational cost and maximising customer’s value. The service value of BA includes the following:

But to sustain these intertwining relationships, the organization or brand should be perceived as adding genuine value to members of the customer community. For this in turn will tend to initiate the creation, delivery and exchange of value between

The strategy is commonly regarded as the prerogative of the business executive. The purpose of the business strategy is to achieve a competitive advantage, that is to say the ability to generate a sustainable profit higher than concurrent, although cases of companies whose performance remains permanently above market remain extremely rare. The business strategy is basically to answer three questions:

A product can be a product or a service. If your product provides sufficient value to customers, they will buy - no matter how good or bad the economic situation is, if they perceive value they will pay the price (Wood, 2010).

Service innovation has long been a part of business, but the fact that service is not tangible like a product is makes service innovation a more elusive concept. Yet many businesses have sought to improve their service levels and gain competitive advantage by harnessing service innovation. This paper will analyze the issue of service innovation, including the ways it can be fostered and how one can measure the results of service innovation.