ABSTRACT
This chapter discusses how companies enable and deliver such value to customers. It also finds out what customers mean when they talk about value, and the various elements that make up a company's value proposition. The three major types of value proposition are low price, product innovation and customized solutions. Value can be thought of as the relationship between the benefits experienced from a product or service and the sacrifices made to enjoy those benefits. Three major types of sacrifice have been identified such as money, transaction and psychic costs. Marketers are generally responsible for designing value propositions. Value propositions are constructed by mixing together a number of variables that will appeal to customers. Management can create opportunities for customers to experience value by their management of the 7Ps. Internet-enabled interactivity permits companies to learn about changing customer requirements through improved communication, modular product design, flexible manufacturing operations and supply chains, and mass customization technologies.
