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Lesson 12 Value of Product
Lesson 12 Value of Product

... as a monetary savings. These products offer environmental benefits – by using one of our products, a consumer is demonstrating that he/she is taking a step toward “saving the environment.” Some consumers are willing to actually pay more money for such products than for traditional, less “environment ...
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... of adopting if you are the only adopter In n people (including you) adopt, your value is nv I will write the price of the fax machine on the board Adopt when your value (strictly) exceeds the price. ...
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... can be examined strategically by considering the zone of tolerance between desired performance expectations and adequate performance expectations. The zone of tolerance represents the degree to which customers recognize and are willing to accept variability in performance. ...
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... can be close to impossible to do with the next best alternative. Yet, without these quantifications, the value proposition lacks persuasiveness and it likely to be quickly dismissed. Without these measurements, it is much more difficult to truly differentiate the benefit experiences from the parity ...
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Value proposition

A value proposition is a promise of value to be delivered and acknowledged and a belief from the customer that value will be delivered and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.Creating a value proposition is a part of business strategy. Kaplan and Norton say ""Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.""Developing a value proposition is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, where Value = Benefits - Cost (cost includes economic risk).
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