value preposition and sd logic

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What Does Value Proposition Mean?

• A business or marketing statement that summarizes
  why a consumer should buy a product or use a
  service. This statement should convince a
  potential consumer that one particular product or
  service will add more value or better solve a
  problem than other similar offerings.

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What is SD Logic?

• The foundational proposition of S-D logic is that
  organizations, markets, and society are
  fundamentally concerned with exchange of
  servicethe applications of competences
  (knowledge and skills) for the benefit of a
  party. That is, service is exchanged for service
  all firms are service firms all markets are
  centered on the exchange of service, and all
  economies and societies are service based. 

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foundational premises of sd logic

• Recognition of the significant role of value
  propositions (FP7)
• How the firm and the customer should be
  considered in a relational context (FP8)
• How the customer is always a co-creator of value
  (FP6).

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AIM OF THE PAPER

• The aim of this paper is to explore value
  propositions in the context of S-D logic,within
  the multiple stakeholder domains that form part
  of a marketing system.

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value proposition concept

• developing a VP
• creating a value delivery
• analyzing customer groups by the attributes that
  customers consider of value
• assessing opportunities in each segment to
  deliver superior value
• choosing the VP that optimizes these opportunities

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Customer value proposition research

• Kambil et al. (1996)
• The value map suggests three strategies for
  extending the value frontier and thereby
  improving competitive positioning
• reducing cost and performance
• increasing performance and price
• enhancing value without increasing price

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Customer value proposition research

• Lanning (1998)
• Lanning defines value as resulting experiences
  customers derive by doing business with the
  organization, compared with competitors
• Anderson et al. (2006)
• suggest that organizations typically adopt one of
  three
• alternative approaches, identifying the benefits
  a company delivers to customers the benefits
  relative to those competitive offerings and the
  key benefits truly valued by customers.

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Customer value proposition research

• Rintamaki et al. (2007)
• identify four broad categories of VPs
• Economic (determined by price)
• functional (associated with specific functional
  needs) emotional (reflecting experiential
  needs),
• symbolic (reflecting self expression needs).