One of the hardest fought for attributes of a brand is knowing that customers consider that the brand has value. We learned in our lesson that perceived value is a key attribute towards selling a brand. Writing a value proposition and keeping it current could help these business leaders to determine and clarify the unique characteristics their business will need to identify to better market their brand. In this paper, I desire to convey what a value proposition is and how it can help leaders chart a successful course through changing times. Although difficult to do, writing a compelling value proposition is a vital part of marketing a brand.
The value proposition must take into account the target customers, benefits and price. For example Volvo: Target customer (Safety conscious), Benefits (Durability and safety), Price premium % (20), Value proposition (Safest car in which a family car travel). Positioning is a marketing concept that allows both buyers and sellers to function effectively. (Kotler, Keller, Brady, Goodman & Hansen 2009,
Value specification Value is the first step, which needs to be identified in Lean thinking. Value of a product can be defined as an extent of significance and need for the customer at specific time and for what he is willing to pay. Customer is one who gets the goods or services produced or provided by the company or organization [30]. The customer defines what the value is. Questions such as “What does customer want?”, “When does he want it and at what price?”, “Which properties and features should present?” help to specify the value for the customer [33].
Economic value is the difference of the perceived benefits received by the customers from the company’s economic cost. Although there are various ways of gaining competitive advantage without being the best in all aspects, there should be superiority in value creation (Peteraf and Barney, 2003). Amazon successfully identified the right resources and developed its capabilities in key target
A third and final reason is that partnerships increase brand equity. Brand equity means the value that a famous company earns from its product, it increases when you associate to a company famous sports celebrity’s names. For example, in 2012 Nike paid to LeBron James $15 million to use its image and name for its product and
Therefore, a brand makes life easier and fewer risky (Barwise et al., 1990) and may be sources of value for the buyer (Kapferer, 1997). A brand is additionally an “intangible however important element of what a firm means; a set of promises” (Davis, 2002). Finally, Bedbury and Fenichell (2002) say that “a brand is, if it's something, the results of a conjunction method within the brain. They’re sponges for content, images, feelings, sensations, and experiences; psychological concepts within consumers’ minds.” Hence, brands enhance the worth of a product on the far side its functional purpose (Farquhar, 1989). The various definitions that are developed for a
In recent researches about brand equity, there are two main prominent theoretical points of view that provide valuable views into the body of brand equity. The first perspective of brand equity is from a financial market’s point of view where the asset value of a brand is appraised (Farquhar et al., 1991, Simon and Sullivan, 1993).Recently, brand equity has increasingly been defined in customer-based contexts, which defines brand equity as the value of a brand to the customer (Aaker, 1991; Keller, 1993; Cobb-Walgren et al., 1995; van Osselaer and Alba, 2000,). Aaker (1991) defines brand equity as “a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firms’ customers. "Keller (2003) argued that the power of a brand lies in the minds of the customers and what they have
In other words, it is the perceived assessment results of the customer about product or service. The gap of perceived value lies in the consumer intention to pay higher price, such as product and service and the actual payment. Perceived value is regarded as a transaction, which is determined by perceived benefits and perceived costs
Before defining brand equity, we must first understand what a brand actually is. A brand is a name or symbol that a company uses to identify a product or service. Branding is an integral part of company development; companies cannot afford to overlook it. A brand brings value to a company. This brings us to brand equity.
Findings - Originality/value - The paper has a value for business seeking to improve the quality provided by them based on customer perspective. Keywords: Quality, Customer perspective Paper type: Conceptual paper 1. Introduction In nowadays globalization and liberalization international business environment, quality