The word “value” is quickly becoming a corporate mainstay, but has it lost some of its meaning through overuse? In Gerry Katz’s article “‘Value Creation,’ ‘Value Added’ and Other Business Clichés: Does VOC Have Anything to Do with This?” he addresses this question.
One of the easiest ways to look at value is through financial terms, weighing the benefit of the product or service alongside the cost to produce or deliver it. However, from the customer perspective, they may not understand the cost of producing your product. Their idea of value is based on the level of the product’s utilization and necessity to them relative to the price. They may deem that your product is “worth the price” or “not worth it” and varying degrees in between.
Throughout his article, Katz explains some of the marketing science tools you can use to gauge how your customers view the value of your product, based on their perceived utility of it relative to the price, in addition to elaborating on the role Voice of the Customer has to play in understanding your customers’ idea of value.