Introduction

Value creation refers to the perceived benefit to the customer, in line with the microeconomic concept of utility from a company’s offering to its customers, whether it enhances the quality of life for the customer (B2C) or the company’s profitability (B2B) (Verdin & Tackx, 2015). Therefore, the customer value proposition describes the value firms promise to deliver to its targeted market consistently. It communicates how a firm’s product or service offering effectively meets the targeted consumer needs or solves their problem relative to a rival’s offering (Sheehan & Bruni-Bossio, 2015). The success of the customer value proposition is contingent on how well the consumer needs analysis is, relative to competitor offerings and the firm’s core competencies. The insights help develop the alternatives that will help structure a product or service with attributes that align with customer needs. Ultimately, customer value creation improves service quality, customer satisfaction, and loyalty. It also promotes higher productivity through quality and quantity of service and significant cost reduction for the firm (Gong, 2016). The current report explores the value creation model for OK2B Apparel.

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