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Flashcards covering key vocabulary and concepts from the lecture notes on customer value, segmentation, and positioning strategies.
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Cost
The expenditure of time, money, or materials involved in producing a product or providing a service.
Price
The amount of money a customer pays for a product or service.
Value
A subjective indicator that each customer assigns to a product or service based on perceived benefits.
Customer Value
The level of appreciation a consumer gives to a product or service based on how well it satisfies their needs and/or solves their problems.
Customer Value Equation
Total benefits for the customer minus total costs for the customer.
Ways to Generate Value (Philip Kotler)
Decrease total customer cost, increase total value, or lower the price.
Value of exchange
Equating offer and needs to facilitate transactions.
Value of experiences
Improving the experience and enjoyment for the consumer to facilitate retention.
Value of commitment
Strengthening relationships with the customer.
Value of knowledge
Leveraging analysis and data to generate insights about consumers and the market.
Strategic value
Identifying growth opportunities associated with the current offering to create new business models.
Operational value
Improving organizational agility, collaboration, and talent development.
Method of Perceived Value
Method to calculate product value based on perceived benefits and relative importance of attributes.