This month only: Save $100 on PRO with code OCTOBER »

Real-World Education for Modern Marketers

Join Over 607,000 Marketing Professionals

Start here!
N E X T
Text:  A A
PRO

'Value' Does Not Equal Low Price

by   |    |  429 views

Every day, we are reminded that providing value to customers is a surefire route to success.

The concept of customer value has been around for over 20 years, and many books and articles have been written about it. Yet its growth in popularity has also been accompanied by frequent misunderstandings and spotty application. This article revisits the customer value concept, reviews a common misunderstanding about customer value, and presents a comprehensive definition that both synthesizes existing research and serves as a model for delivering higher levels of value to your customers.

Let's start with a misunderstanding.

Value Does Not Always Equal Low Price

The most prevalent misunderstanding of the customer value concept is that value means low price. For example, companies like Wal-Mart, Hyundai, and Marshalls are identified as providing high value to their target customers by offering their products at the lowest prices.


While these discount merchandisers and low-price manufacturers may provide high levels of value in terms of product cost versus competitor pricing... luxury, premium-priced products and services also provide extraordinary levels of value to customers.


Read the Full Article

PRO Membership is required to access this how-to marketing article. Sign up to read the full article and gain access to all of our PRO content!

Sign up for a 2-Day Free Trial  Learn more about PRO Membership

Ed Hellenbeck is an assistant professor of business administration/marketing at Saint Joseph's College and an independent consultant focusing on customer value delivery and customer service. He can be reached at ehellenb@sjcme.edu.

Rate this  

Overall rating

  • Not rated yet.

Add a Comment

MarketingProfs uses single
sign-on with Facebook, Twitter, Google and others to make subscribing and signing in easier for you. That's it, and nothing more! Rest assured that MarketingProfs: Your data is secure with MarketingProfs SocialSafe!