“Am I getting value for the price I am paying?”
‘Value’ has been a timeless buzzword – it drives many businesses in configuring the positioning of their product or service offerings. We all know it is one of the few things at the top of our customers’ minds when they decide if they are coming back for more. It is at the core all about negotiating the frontier between offering more and charging less – or is it?
At Nexus Link, we think ‘value’ is hardly a static construct that can be taken out-of-context of a specific business. The sub-drivers that impact perceived value – and the structure of the inter-relationships – vary across businesses, socioeconomic environments and target customer segments (just to name a few). Each of these sub-drivers may not be uni-directionally related to value in all cases. Consider for instance a service offering that requires a high level of professional expertise and the quality of which cannot be easily assessed by customers. (Think about medical or legal services.) When its price falls from the premium range to average levels, the perceived value will likely increase; if the price continues to fall past the industry-average however, the impact on perceived value may actually be negative due to more fundamental changes in customers’ perceptions of the service quality. We want to help our clients model the dynamics of factors that impact perceived value, exactly as perceived by their customers.