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S.V. Parikh Helping businesses since 1920
According to our concept, customer value is a complex and difficult-to-define concept. Based on the review on customer value literature, it has been reflected that the difficulty and the complexity of the customer value concept may be caused by the following aspects:
The nature: We understand that the complexity and the difficulty of customer value may stem from the characteristics or the nature of customer value is described as: idiosyncratic (subjective, personal preference), dynamic (changes over time), interactive (between subject and object), situational, and the experience of using or consuming a product.
The Dimensions and Types: We define three dimensions of customer value which describe the properties of customer value: 1) extrinsic versus intrinsic, 2) self-oriented versus otheroriented, 3) and active versus reactive. Based on these dimensions, we describe eight types of customer value: efficiency, excellence, status, esteem, play, aesthetics, ethics, and spirituality.
The level of abstraction: We believe that customer value involves both higher and lower level of abstraction. At a higher level of abstraction, customer value is all about customer perception, experience, or even customer personal values. At a lower level of abstraction, customer value is about the attributes or characteristics of products and services which we can supply to them.
The forms: According to our knowledge, customer value involves two basic forms: trade-off and non trade-off. Customer value can be described as a trade-off between benefits and sacrifices. Customer value can also be described in a non trade-off form, where customer value is the fulfilment of goals, needs, or wants through the consequences of using or consuming our products or services.
Team SVP thinks that customer value consists of product leadership, customer intimacy, and process excellence, where these elements, we would like to fulfill through our product, our service, and our customer relationship.
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