Market value the potential of a product or service to

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Market value – the potential of a product or service to satisfy a customer’s wants and needs. Market value usually consists of: 1. Universal values – satisfies the basic needs of the customer (hunger, thirst, safety, etc.) 2. Personal values – satisfies the wants of the customer, which are usually of a more personal nature. Can be group specific, or individual specific. Group specific personal values are the basis for segmentation strategies, while individual specific personal values form the basis for one-on-one marketing and relationship marketing strategies. Matrix of values and customer roles: User Payer Buyer Universal values Performance value Price value Service value Personal values: Group specific Social value Credit value Convenience value Personal values: Individual specific Emotional value Financing value Personalisation value Market values sought by users: 1. Universal values – performance. The universal value sought by the user is what the product or service can do for him. 2. Personal values – social and emotional. Social values influence the consumer to buy a product that is congruent with the norms and standards of their friends. Consumers also buy a product because of its 3
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emotional value – a Mercedez has emotional value as it tells the world that the owner has “arrived”. The consumer creates emotional value through experiential consumption. Market values sought by payers: 1. Universal value – price. Price value of the product that the consumer is obtaining. 2. Personal values – credit and financing. Credit value is created when the customer pays by credit card. Financing value is created when the payer is offered terms of payment to make the payment more affordable. Market values sought by buyers: 1. Universal value – service. Service value is measured according to the following three elements: o The pre-purchase advice and assistance of the salespeople. o The post-purchase advice and assistance of the salespeople. o Freedom from risk of a miss-purchase. 2. Personal values – convenience and personalisation. By making a product easy to buy, the retailer creates convenience value for the buyer. The personalisation value is created for the buyer by means of customisation and interpersonal relations. Organisations must ensure they deliver value to their target markets. Question remains of what exactly constitutes value to the customers, which has to be research. The only way to determine if value was added to the product / service bought by the customer is to measure it. The following steps are involved in determining if value was added: 1. Determine what value the customer expects from a product or service. Can be done by customer satisfaction index.
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