The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms - A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom

By Hassan, Almoatazbillah | International Journal of Marketing Studies, June 2012 | Go to article overview

The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms - A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom


Hassan, Almoatazbillah, International Journal of Marketing Studies


Abstract

Loyal customers are the key factor of success in all organizations. They spend money, they recommend to others and they repeat buy from the same organization, as long as it delivers consistent value. Creating and delivering value where it is needed is not an easy job for a marketing planner. This study seeks to provide strong understanding of the concept of the value proposition from the academic perspective, as regards the actual understanding of what customers perceive about the organizations. This study took place in Southampton in the United Kingdom, on customers of four main supermarkets to identify the way they shop, the value they seek and the value they actually obtain from each supermarket. The method used for this study was qualitative with a use of mini-depth interviews as the approach of collecting and analyzing the data.

The results indicated that the value proposition is a widely used concept, but there is no specific definition of it. Value can be created through more than one element, such as price, quality and location. Companies therefore are responsible for setting the value they seek to deliver based on their strategies and their shareholders' values. They are responsible for communicating them and managing the change occurring in the market. Marketing provides marketing strategies and tactics that are aligned with the overall strategies of the organization, to help deliver the best value to customers. Interview results showed that customers perceive different type of values mainly depends on their age, marital status, home location, and shop prices. Some supermarkets communicate their values clearly and some do not. Some of them provide more than one element of value and others tend to focus on just one, such as Waitrose focusing on quality.

The findings provided some strategic recommendations on both sides to help improve the value proposition to end customers. This includes corporate and marketing strategic considerations and the need to identify and fulfill customers' expectations. Creating competitive advantage will finally lead to customers' loyalty and generate profits.

Keywords: Marketing, Value proposition, Supermarkets, United Kingdom

1. Introduction

Creating and delivering the value proposition are critical issues that marketing planners should consider in planning strategies. These days, a high level of competition and rapid changes in the market and technology make it complex for a company to sustain momentum without focusing on deliver the value that customers require. Value propositions vary across industries and across different market segments within an industry (Kaplan & Norton 1996). Capon and Hulbert (2007) linked the success of firms in the marketplace to the value provided to customers. They introduced a principle of customer value, with customer insights driving the company's marketing activities. Customer value should also drive investment and production decisions, because customers perceive value on the benefits of the product or service they receive. Consequently, as the environment changes, and the customer experience and their needs change, the value they seek also changes. Therefore, most companies - especially leader companies - invest more money in marketing research to gain deep customer insights, in order that they can shape their development plans with deep understanding of the market based on recent history, which is at the "heart of positioning". Capon and Hulbert (2007: 251) state that a clear and effective value proposition should be the basis of a firm's functional, psychological and economic value, with related benefits. It shows how to "gain customers and beat competitors".

Organizations are successful when customers buy and repeat buy from them. Buying behaviours and motivations are extremely different between one and another customer. Some customers seek quality, others prefer quantity, some like a high level of service, and others desire to do things by themselves. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms - A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.