Customer value Flashcards
Name two elements that seem to affect the value of an offering
- Features (functions, quality, ingredients, amount, etc.)
2. Price (sacrifice)
State the definition of (economic) value
”Value is the worth in monetary terms of the economic, technical, service and social benefits a customer receives in exchange for the price paid for a market offering.
How does the course differentiate between value and values?
- Value (singular) is the outcome of an individual performance assessment conducted by an economic agent.
- Values (plural) are the standards according to which such assessments are made
State the basic value definition
Customer perceived value
Perceived benefits - Perceived sacrifice
State six lifecycle costs of a purchase
+Price paid (directly influences affordability)
+Acquisition costs (costs related to purchasing process)
+ Usage costs (installation, consumables, ‘captive pricing’)
+Maintenance costs (ease of repair, service intervals)
+ Ownership costs (e.g. financial solutions)
+ Disposal costs (e.g. for recycling)
Where can customer benefits be derived from?
- Features (relative to customer use and preferences)
- Perceived product benefits relative to other offerings
- Service (e.g. when products are undifferentiated)
- Company or brand benefits (status, approval, etc)
Which are the prerequisites for rapid-skimming being a good strategy?
- The market is unaware of the product or service.
- The market is able to pay the price.
- The establishment of brand preference is desirable.
Which are the prerequisites for slow-skimming being a good strategy?
- The market is of a limited size.
- The market is aware of the product.
- The market is able to pay the price.
- There is no likely competition.
Which are the prerequisites for rapid penetration being a good strategy?
- The market is not aware of the product’s existence.
- The market is price sensitive.
- A large market is anticipated.
- Strong competition is likely.
Which are the prerequisites for slow penetration being a good strategy?
- There is a threat of competition.
- The market favours lower prices.
- Customers are aware of the product.
- The market is large
Which are the two ways to manage costs in B2B marketing?
- Reduce direct costs
2. Reduce indirect costs
Name five ways to reduce direct costs
- exploiting competition between suppliers
- concentrating purchases to fewer suppliers
- coordinating purchases internally
- buying at the right point in the value-chain
- exploiting negotiation techniques
Name five ways to reduce indirect costs
- specification work (educating suppliers)
- quality control before, during and after delivery
- inspection and control
- transport and goods handling (damages, on-time, etc)
- operative costs for purchasing
Name four ways to improve asset utilization
- reduce stand-still costs in production;
- reduce damage effects, costs of renewal/recovery
- reduce machine-time, service-time, etc. by adapting to supplier processes
- reduce own development/improvement costs by involving suppliers and utilizing their capabilities
Name four ways to achieve revenue growth and development
- Ensure that the suppliers’ technical capabilities are utilized in internal R&D
- Stimulate suppliers to develop in the ”right” areas
- Push joint development projects with other functions
- Create a resource structure among external suppliers
