ABSTRACT
This chapter discusses the three non-service components of the value proposition — quality and the communicators, price and image. Coolness or “being hip” is an elusive attribute that is based around overall image but assumes that the other value proposition ingredients are satisfactory to superior. Virgin Group is a classic example of a company that has earned its long-term reputation based on innovativeness, coolness and corporate image. Companies that position themselves at the total product level have clearly identified who the company is and what they stand for. There are four stages of product quality: conforming to engineering standards, customer satisfaction, market-perceived quality and customer value management. Customers consider price as a cue of how much they have to give to acquire the possession or use of the product or service. Historically, product quality has been treated as the mirror image of price.
