ABSTRACT
This chapter describes concepts and models that apply to products sold through retail channels, and these call attention to the fact that each individual customer will evaluate products differently, assigning different values on product features. Greater customer value for one product over another takes form in a higher profit margin somewhere in the supply chain-at the retailer, at an original equipment manufacturer (OEM), or perhaps at a supplier of a key component. The key lesson of the chapter is that supply chain design must be consistent with customer and end-user perceptions of product value. Employing an omnichannel strategy that offers customers alternative ways to purchase a product is a strong response, one that will vary by product features and requirements as well as life cycle stage. The chapter presents the case that retail supply chains must be designed with the perception of customer value and product competition in mind.
