Value Proposition: A Common Ground between Company and Customer

Zhou, Xinyu (2009) Value Proposition: A Common Ground between Company and Customer. [Dissertation (University of Nottingham only)] (Unpublished)

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This is a paper that examines the contribution of the value proposition and the interplay between value creation process and value proposition strategy, between competencies and value proposition in competitive market situation.

A literature review was carried out to understand the relevant research already in existence. The origin of value and the two main contemporary theories of customer value were reviewed; some models were covered as well. The two theories are Customer-based value theory and value chain theory, both of them discussed the importance of customer value, but value chain theory focus on the internal value creation activities and linkages. The value chain theory links the value activities to business strategy, addresses the nature and determinants of competitiveness, and it offers a useful framework for analyzing value chain and deciding value proposition choices. Customer-based value theory explores value creation from the customer perspectives. It demonstrates that the value propositions of organizations should be aligned with the customer perceptions for the value.

After reviewing the relevant literature, the debates were found and some propositions are made about the subjects of value proposition as extended research area of existing theories.

The organization in construction material industry –Lafarge Gypsum China Company was selected to be interviewed, qualitative research are carried out once the subjects were identified. The research methods of customer interview, sales focus group, marketing team interview and participant observation are adopted in order to get a sufficient view and evidence to discuss the subjects. A model is presented which consists of the importance rate of customer value dimensions and the performance rate of them. The model used as analysis tool to discuss some subjects proposed.

After discussion, the conclusions are got about the contribution of the value proposition strategy for companies, the relationship between value proposition strategy and internal recourses and processes, and the influence of market segmentation on successful value proposition strategy.

Finally, the recommendations are given:

(1) Bring together several sources, including the information derived from customer contacts and data from various kinds of research, into an integrated process for learning bout customers.

(2) Develop an internal process of value proposition delivery and periodical review process

(3) Use value proposition concept as a useful sales tool

(4) Develop the segment value propositions based on specific market segments

Limitations of the present study are also concluded in the paper.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 19 Mar 2010 15:55
Last Modified: 17 Feb 2018 09:29

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