Value and The Consumer

1
Value and The Consumer

• Convenience/time saving is a valued attribute
• Elements in defining value
• Past experience
• Current situation
• Expectations

2
Past Experience

• Degree and length of product use
• Favorable or unfavorable view
• Success in using the product

3
Current Situation

• Guided by perceived needs
• Necessity of change or redefinition
• of needs
• Economic situation-cut costs
• Change in company/policies/personnel

4
Value is linked to

• Product or service characteristics
• Consumers individual situation
• Awareness of product characteristics by consumer
• Exceeding expectations- receive more than you pay
  for.
• Ideas/vision for business user

5
Two types of value

• Tangible
• Intangible-image, salespersons understanding of
  the consumer- their experience,hopes, dreams,
  and definition of quality
• Emotions or feelings are involved.

6
The Value Equation

• Value is equal to
• Perceived product performance/- Additional
  Services- Price
• In a business (BToB) setting, value is
  indicated by reduced cost, enhanced revenue,
  technical knowledge, greater access, and ease of
  use(reduced complexity)

7
Levels of Value

• Productgt Expectationsgt Value-AddedgtTotal
  Product/Partnership
• Delivery of value creates loyalty
• Value varys with regard to buyer type
• Business- bottomline results,price/value
• Economic- price, efficiency,tailored
• program

8
Buyer types and Value

• Relationship- trust, regular contact,full
  service, information source needed
• Exercise- small groups
• 1. Discuss what value is to you
• 2. How was value involved in a recent
  purchase
• 3. As you approach a business purchase,
  what factors indicate value to you. Do at least
  three items. This is something you have not
  purchased yet.