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Questions and Answers
What is the primary purpose of a Value Proposition?
What is an example of a Value Proposition that satisfies an entirely new set of needs?
What is a common way to create value in a Value Proposition?
What is the benefit of mass customization in a Value Proposition?
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What is the main purpose of a Value Proposition in relation to Customer Segments?
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What is a characteristic of some Value Propositions?
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What is an example of a Value Proposition that may have limited growth potential?
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What is a key aspect of a Value Proposition?
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What is the primary advantage of Partner Channels over Owned Channels?
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What is the primary goal of building Customer Relationships?
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What type of Customer Relationship involves human interaction?
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What motivates companies to establish Customer Relationships?
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What type of Customer Relationship involves dedicating a customer representative to an individual client?
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What is the primary advantage of Owned Channels over Partner Channels?
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What influences the overall customer experience in a company?
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What is the primary goal of finding the right balance between different types of Channels?
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What is a key aspect of a product that can contribute to its Value Proposition in the fashion and consumer electronics industries?
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Which of the following companies has designed its business model to enable low-cost air travel?
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How does Salesforce.com create value for its customers?
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What is a way to create value by reducing risks for customers?
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What is a key benefit of Apple's iPod and iTunes?
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What is a way to create value by making products or services more accessible to customers?
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What is a common way to satisfy the needs of price-sensitive Customer Segments?
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What is a key aspect of a brand that can contribute to its Value Proposition?
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Study Notes
Value Proposition
- The Value Proposition is a bundle of products and services that create value for a specific Customer Segment.
- It solves a customer problem or satisfies a customer need.
- Each Value Proposition consists of a selected bundle of products and/or services that cater to the requirements of a specific Customer Segment.
- Value Propositions can be innovative, representing a new or disruptive offer, or similar to existing market offers, but with added features and attributes.
Types of Value Propositions
- Newness: Satisfies an entirely new set of needs that customers previously didn't perceive because there was no similar offering.
- Performance: Improving product or service performance to create value.
- Customization: Tailoring products and services to the specific needs of individual customers or Customer Segments.
- Design: A product may stand out because of superior design.
- Brand/status: Customers may find value in the simple act of using and displaying a specific brand.
- Price: Offering similar value at a lower price to satisfy the needs of price-sensitive Customer Segments.
- Cost reduction: Helping customers reduce costs.
- Risk reduction: Reducing the risks customers incur when purchasing products or services.
- Convenience/usability: Making things more convenient or easier to use.
- Accessibility: Making products and services available to customers who previously lacked access to them.
Customer Relationships
- The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments.
- A company should clarify the type of relationship it wants to establish with each Customer Segment.
- Relationships can range from personal to automated.
- Customer relationships may be driven by customer acquisition, customer retention, or boosting sales (upselling).
Customer Relationship Categories
- Personal assistance: Relationship based on human interaction, where customers can communicate with a real customer representative.
- Dedicated personal assistance: Involves dedicating a customer representative specifically to an individual client.
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Description
Understand the concept of value proposition in business models, its importance, and how it solves customer problems. Learn how to create a unique value proposition that sets your company apart.
