value-and-value-proposition-original

Value and Value Proposition

Understanding Value

  • Dual Meanings of Value

    • Value in Use: Utility of an object for the user.

    • Value in Exchange: Purchasing power a possession provides.

Value-in-Exchange

  • Value measured by exchange transactions.

  • Determined by a product or service's inner attributes.

  • Objectified, inherent to products/services.

  • Value is exchangeable.

Value-in-Use

  • Value creation is user-centric:

    • "Value is created by the user for the user" .

  • Enterprises propose value propositions; consumers determine value through coproduction .

Value Proposition

  • Key Points:

    • Suppliers cannot create value; they can only propose it.

    • Suppliers cannot create value; they can only propose it.Hypotheses formulation is essential for this process.

Value-in-Context

  • Extends Value-in-Use:

    • Contextually specific, dependent on other resources and actors.

  • Example: Value of a car varies by individual context (e.g., urgency for an interview, family trip preparation).

Value Proposition Canvas

  • Customer Jobs

    • Functional Jobs: Looking for solutions to specific problems.

    • Social Jobs: Desire for power, status, etc.

    • Emotional Jobs: Searching for happiness, calmness, etc.

    • Basic Needs: Physiological, safety, love, esteem, self-actualization.

    • Example: Customer's task related to a full fridge.

  • Pains

    • Types of customer pains:

      • Economic Costs: Financial or transactional costs.

      • Emotional Costs: Feelings of anger, fear, frustration, etc.

      • Risk: Potential for negative outcomes.

  • Gains

    • Possible gains from completing a task:

      • Quality: Meeting expectations on service/product.

      • Cost Savings: Financial and time savings.

    • Example: Addressing an empty fridge scenario.

  • Customer Profile Ranking

    • Not provided in detail; implies prioritization of customer needs and traits.

  • Products & Services

    • Determine which solutions fulfill customer jobs.

    • Include tangible and intangible aspects.

    • Rank solutions based on perceived importance (nice-to-have vs. must-have).

  • Pain Relievers

    • Strategies to reduce identified customer pains.

    • Identify savings the solution offers.

    • Describe how it enhances or simplifies customer tasks.

  • Gain Creators

    • Explain how the solution positively impacts the customer.

    • Surpassing customer expectations or delivering unexpected satisfaction.

  • Personas

    • Definition: Hypothetical archetypes representing actual users.

    • Recall: Value is influenced by both usage and context.

    • Importance of catering to different users and contexts.

Value Proposition Template

  • Basic form:

    • "Our [product/service] helps [target customers], who want to [customer job] by [key benefit] and [additional benefit]."

  • Practical Example

    • Organic Delivery Service Example:

      • Helps working parents provide healthy lunches via daily subscription service directly to their children.