Product Value In Marketing

Product

According to Armstrong and Kotler (2007), product can be defined as the goods and services is a combination the company offers to the target market. Belohlavek (2008) argues that a product or service is the element which satisfies the client's needs. The product or service generates two types of relationships with the prospect: a functional and a linking one. The usefulness of the product bears a relationship with its benefits measured both objectively and subjectively. The product's use value is fundamental to the purchasing decision process in its closing stage (Belohlavek, 2008 p.15).

For a competitive approach the company has to offer products that are unique and meet customer needs, wants and values. Maintaining the product uniqueness

According to Bils & Klenow (2001) and Er & MacCarthy (2006) product variety is a new development and a trend in many industry sectors worldwide (cited by Felipe Scavarda, Schaffer, Jose Scavarda, Reis & Schleich, 2009). Product variety is an effective strategy to increase the market share as it enables the company to serve different kinds of customer segments and to satisfy the customer variety seeking behavior (Tang, 2006). This involves different product features, packaging, or channels of distribution (Felipe Scavarda, Schaffer, Jose Scavarda, Reis & Schleich, 2009). Product variety strategy as a marketing strategy will result in sales growth, profits and meeting more specialized demands (Berry & Cooper, 1999). Kim & Chhajed (2000) argues that different kinds of product manufacturing results in a decrease in logistics performance or manufacturing performance. Lee & Billington (1994) also argues that product variety can result in higher forecast errors and lead to excessive inventory for some products and shortages for other products. If the product variety is to the optimal or to the appropriate level of variety, then product variety will result as economical efficient and will create positive marketing efforts (Lancaster,

Retailers can sell the products very fast without much expensive when they are offering immediate savings to the customers. Short term price discounts are easier to execute and provide immediate price savings to the customers (Madan & Suri, 2001). Discounts actually increase the value to the customers and this happens at the intermediate levels of discounts and when the discounts are either very high or very low it decreases the value (Madan & Suri,