12 Value Creation

Question 1

How do we determine value?

Answer 1

By identifying the value of multiple/single elements of a particular product/service based on their situations, context or product/service type (e.g. intangibility as the examples given, functional vs hedonic).

Question 2

Is Value subjective or objective to customers?

Answer 2

Value is subjective to every customer’s needs, beliefs, and his/her own consumption situations.

Question 3

What is the goal of delivering a product/service in terms of value?

Answer 3

To create superior perceived value (where customer perceives higher value than any competing alternatives).

Question 4

What happens during co-creation of value?

Answer 4

• Customers might be a passive receiver of the value that the company offers to them.

Question 5

What does the different extent of customer co-creation depend on?

Answer 5

Different extent/degree of customer co- creation depends on how much effort the customers are willing to put into the process.

Question 6

What does the ability to co-create value depend on?

Answer 6

Ability and willingness to co-create value depend on resource available (knowledge, expertise and time), and individual motivations (freedom to choose, control and satisfaction).