Value Proposition And Strategic Focus

1828 Words8 Pages
ASIA PACIFIC UNIVERSITY COLLEGE OF TECHNOLOGY AND INNOVATION Delivering Customer Value | Question 2: Value Proposition and Strategic Focus [Individual assignment] | | Words: 1505 Contents Introduction 3 “Price is what you pay, Value is what you get” 4 The cases of Sony and Dell Inc. 5 AirAsia vs. Malaysian Airlines 6 The value of a cup of coffee 7 Conclusion 8 References 9 Introduction Today companies have their own style of doing business. It is very important to choose the own different type of pricing strategy. First of all, there should be explained the difference between Price of the product and its value. Price is the perceived amount of money which can be paid for a specific product, and the value is the cost of the product which is necessary or seems to be it for a consumer. There is a formula which can be used for finding a value of a product or services: Value = perceived benefits received perceived price paid It shows that the perception of the product is important as well as the price. It’s known that some consumers do buy those goods which are with the low price, without any need of it. Before the modernization of our culture, consumer were looking for the products which has the lowest price in comparing to others, in spite of this fact, nowadays this kind of experience is no more used widely. People prefer to buy goods which are more suitable or valuable for them. Businesspeople choose to concern more about the value they deliver and less about price they set for achieving better sales, now. The axiom that all organizations and people will buy, and continue to buy, if they believe that value has been received as a result of the transaction is being proved by successful stories of many companies which sell on value. In addition to price, there are other benefits, both tangible and
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