Some common myths in Value Creation Myth # 1 More is often considered the value Buy one get one free schemes are rolled out. There is of course an instant boost of sales. However, at the end of the scheme that the client feels that he had been paying to over 100% more for goods and products perceived as too expensive, and once removed from the program. Bloom. You can switch to another product the same price. Conclusion: Dissatisfaction leads to value erosion Myth # 2 The price is the lowest value of many companies consider that offer more value for money. More often than lower-priced products as the best final seconds with a more expensive product with a similar product attributes most important market. The simple reason is the higher-priced product can provide greater satisfaction due to perceived values and images.
Car markets are a good example of this syndrome. Myth # 3 more features or add ons are value companies charge for a product or service offering more features and superior value. While this may be attractive if the features are not supported by appropriate support from the satisfaction may be lower and the value is reduced. We found this diary. A customer purchases a product with many features but not demonstrated properly or may not be adequately addressed.
The research can not be managed effectively. Bloom would agree. Airlines Offering accommodation add-ons like free overnight does not favor if services such as information handling, reservations, and schedules are poor. Business cell phones may be offering a lot of add-ons like national roaming or free incoming calls, etc. However, if the turnover is poor, and billing inquiries are not addressed properly the customer is happy and leaves the another service provider. Myth # 4 products compete with similar products This happens often in the entertainment industry. A theater can not compete with other movie theater. If the customer is not satisfied with a theater or a movie can look at options to sources of entertainment, for example, an amusement park. We can call discretionary time products. The highest levels of satisfaction are very important in this business. These are some examples of how businesses can go totally wrong in assessing value. While any good to talk about value creation of a thought must go into the main ingredient in the value that is customer satisfaction. And business is really serious about customer retention. As even a novice knows that business is much cheaper to service and retain existing customers. The cost of acquiring new customers is very high. Now many have business satisfaction index of consumers to control the primary factor in creating customer value RG Srinivasan is founder of Born to Win Forum.