Any holistic user experience (especially when designing for "transformation") should/must create shared value. That means: Solutions for users do not only have to be aligned and negotiated with the economic realities of the service provider, but also with its attached partner ecosystem and society in general. The clever and resilient configuration of "value flows" in business ecosystems will therefore more and more become a prerequisite for the development of truly "new" and complex value propositions (e.g. service design for health care, environmental matters, etc.)… A workshop presentation for the World Usability Day 2012 - Berlin.

1. Disclosing Shared
201
WO
Value in Business
RL
DU
SA
BIL
2
ITY
Ecosystems
DA
Y
BE
RL
IN
Alte Kalkscheune Berlin, October 10th 2012

2. Corporate Confusion
Innovation! We need
more innovation!
The key is: We have to
create more value for our
customers!
… and our
solutions have to
become more easy
to use.
Yes!
Our brand definitely
needs an emotional We need a clear
supercharge! positioning! Our value
proposition has to be refined.
I personally have the vision of
becoming the Apple of ...!
2

3. Agenda
01 What is User Value?
02 And a Value Proposition?
03 Value Creation: How to create/deliver new value?
04 Team Work! 45 min
3

4. Biosphere
Individual
Society Economy
Adapted from Daly and Farley (2004) 4

5. Biosphere
Society
Economy
Individual
Adapted from Daly and Farley (2004) 4

6. Biosphere
Ecology Economy
Society
Economy
Individual
Psychology Sociology
Adapted from Daly and Farley (2004) 4

8. Levels of
Value

9. Levels of
Value
ty
ie
c
So
m
ste
y
os
tion
Ec
sa
ni
ga
Or
er
Us

10. Levels of
Value
ty
ie
c
So
m
ste
y
os
tion
Ec
sa
ni
ga
Or
er
Us

11. Levels of
Value
ty
ie
c
So
m
ste
y
os
tion
Ec
sa
ni
ga
Or
er
Us

12. Levels of
Value
ty
ie
c
So
m
ste
y
os
tion
Ec
sa
ni
ga
Or
er
Us

13. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us

14. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Perspectives
on Value

15. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Economy Ecology
Perspectives
on Value Psychology Sociology

16. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Economy Ecology
Perspectives
on Value Psychology Sociology

17. Acquisition Value, Aesthetic Value, Basic Value,
Conditional Value, Delivered Value, Efficiency Value,
Desired Value, Emotional Value, Dual-stimulus Value
Epistemic Value, Exchange Value, Esteem Value, Exc
Value, Ethical Value, Expected Value, Excellence Valu
General Value, Functional Value, Postpurchase &
Performance Value, Image Value, Private Meaning Va
Logical Value, Public Meaning Value, Material Value,
Received Value, Play Value, Sign Value, Redemption
Possession Value, Relative Value, Practical Value, Sin
stimulus Value, Social Value, Transaction Value, Spiri
User Value?
Value, Unanticipated Value, Status Value, Use Value,
Value, Experience Value, Means-end Value, Exchang
Value, Labor Value, Extrinsic Value, Intrinsic Value,
Satisfaction Value, Perceived Value, Value in Context

18. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Economy Ecology
Perspectives
on Value Psychology Sociology

19. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for
Money
Economy Ecology
Perspectives
on Value Psychology Sociology

20. Classic Value Theory in Economics
10

21. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for
Money
Economy Ecology
Perspectives
on Value Psychology Sociology

22. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for
Money
Happieness
Economy Ecology
Perspectives
on Value Psychology Sociology

23. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for
Money
Happieness
Economy Ecology
Perspectives
on Value Psychology Sociology

24. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for
Money
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

25. Sign Value
13

26. Sign Value
13

27. Play Value: Children’s Hospital of Pittsburgh
Image Credit: © 2011 General Electric Company (http://www.gehealthcare.com/promo/advseries/adventure_series.html) 14

28. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for
Money
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

29. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for Eco-
Money Footprint
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

30. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»User Value«? Whati science is saying ...
e nef
ts an d
AB A cc
o rd i
ng t
o hi
s mo
a and del
a lity m /or fo u r
d qu nd a re exp p rim
io n s
an
em a a ls o re ss a ry
oper
at
y th e
d
] su ed i in te
a te g y
, nl gen b je c n d iv rp re
he cu s tr Ag a in o s te n c
y
cy ( id u a ex ch ta tio
s of t tin g , te x t. cons
i
to m e
r
Wo t to lly o ange
d a tio
n
m a rk
e
ss co
n
s and he cu
s
oda th e r co v a lu ns o
y fo u
n
s fro
m
b u s in
e
c is e n
es e fo r
t
ll 2 0 in flu lle c t e, w f va
th e v
er
9 0 te
xt
in th
e
ir c o
n
of va
lu
a le V
C 03, ence iv e l h ere lu e
in e d s is o
f
s u se
d in th
e
fo rm
s ,S p p .5 of b y (a ca
m a ly ti d ry in g VC o th as e
in g exa ur e an th ow i ns v a rie p r im a a rk et – 6 ). th e sag very
fo rm H av li te ra t n d ou fi n itio r, fiv e d VC
,M ” su bj e s ta ty
s of m ed
a
e r to
fi
a in d
e
ow e
ve D e r iv
e
e c t’ lt) b
dal v a lu fo r in o r
d
and
ag
o rs.
H et V C
,
s va y th
ls e fo em e
nt
d ere
d,
ar au
th
lo w s
:N lu e ec
Fac r th ag si ul l syst
s con tf p a r tic a s fo
e cu ks ous vaelled the em
a
to rs s to m s id e w r
m
a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
Con r
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
rs ’ V llil2o 2007,
a lu -B on l 0 0 3 4 )
adieo In ie s ta , p .9 , p .1
á
t z
n
&
nP )
l2 003 -
-F e rn ro c oo dal 120
c hez ess (W
-
(S á n s
d v a lu e ri fic e
rc e iv
e sac
m s on
pe
ll (2 003) fits
a n d
rc h s tr
ea
rW ooda Ben
e
R esea a fte
e t VC
w on N
V ie
on
c tiv e
i cs p ersp e e
co n om ) til it a r ia n 20 in th
, p .7 an u , p .1 al
t &E ll 2 003
kes 56«n iv id u
em
en : Wo
oda ly ta )
ar009 d »Figuralue ifor ae in
e n d he
n ag S our
ce
V C clle 2 12 an
( V n e e n c u tio n s . T
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s« M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
ge s of “S u
v a lu
e r th e
sum Image Credits: ... S ta nce b je c e
URrI
: T u NTE cust
om e 17
e rs ’ e r ie t-b a
s e d e (S o u rc RPR r (S o
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

31. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»Consumer Value«ne→ Customer Value → User Value
e
fi ts an d
AB A cc
o rd i
ng t
o hi
s mo
and del
Customer Value =
a /or fo u r
a lity m exp
an d qu nd a re re ss p rim
at io n s d em a a ls o ed i a ry
, oper nl y th e gen ] su n d iv in te
cu s tr a te g y Ag a in o s te n c
y
cy ( b je c id u a ex ch rp re
s of t
he
tin g , te x t. cons
i
to m e
r
Wo t to lly o ange ta tio
d a tio
n
m a rk
e
ss co
n
s and he cu
s
oda th e r co v a lu ns o
y fo u
n
s fro
m
b u s in
e
c is e n
es e fo r
t
ll 2 0 in flu lle c t e, w f va
er xt lu ence lu e
Value for the Customer Value for the Firm
e n C
th e v f 9 0 te d in th e ir c o s of va ,S a le V 03, iv e l h ere ca
m in e d a ly s is o ti s u se d in th fo rm g VC p p .5 of b y (a as e
in g exa e an ow i ns v a rie r im a
ry
a rk et
in – 6 ). o th sag very
fo rm H av te ra t
ur
d ou
th
n itio fiv e
p
d VC
,M ” th e e s ta ty
fi r, su bj
dal
s of
v a lu(Customer Perceived/Received Value)
fo r m ed
a
nt
li
in o r
d e r to
fi n
and
ag a in d
e
th o rs.
H ow e
ve
et V C
, D e r iv
e
(Customer Lifetime Value) e c t’
s va
lt) b
y th
ec
e fo d, :N
ls ag em e si d ere ul ar au l lo w s lu e
Fac r th s con tf p a r tic a s fo syst
e cu ks ous vaelled the em
a
to rs s to m s id e w r
m
a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen d
V C ) rg e d . W o o re 1 2 ).
c in g
Con
Net benefit
em(Sou VC (Figu
e
r
Utility
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
(Costs - Sacrifices)
rs ’ V
a -B
llil2o 2007,
on l 0 0 3 (total .satisfaction with offering
14)
lu a ie s ta , p .9 3, p
l 20 and willingness to pay)
t ez In
ndion
& ) 0
-
e z -F e
rn á P ro oo dal -1 20
á nch ces (W
l u e (S s fic e
s
v ed va sac
ri
p e rc e i 003) n d
m s on ll (2 fits
a
h s tr
ea
rW ooda Ben
e
R esea
rc
Net VC a fte Means-end Customer Lifetime Value
V ie w on
(economic worth of customer to the firm)
on
c tiv e
i cs p ersp e e
co n om ) til it a r ia n 20 in th
, p .7 an u , p .1 al
t &E ll 2 003
kes 56«n iv id u
em
en : Wo
oda ly ta )
ar009 d »Figuralue ifor ae in
e n d he
n ag S our
ce
V C clle 2 12 an
( V n e e n c u tio n s . T
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
o ra m a ry
VC
s: T h T u r n ll 2 0 s can eernativ tu itiv
e
Phenomenological experience s is
in Cor
p
ig u re
1 2: Fi
ve p
ri
fits a
nd sa cri
fi
ce
ce
( ft
sacf.
a
l he
t e a Va fo r c o m
hi
Perceived Satisfaction
eWood ch otueri.nT peting alt bjective »i observe.
r n
o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
ct or e
us a th e
rh
ts a du
(delivery of »superior« customer value
M Ba er
e nefir Ex nd wei e in me pro e ss a r
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus v al
th e
ver ct alonValu e,
r n te
foe ia
l rn a ti p o F ig u
reo1s of
r
fa c t 1 :
th e b
= competitive advantage)
iv e s o ro d u g e n flu e n c in
an h e i
g A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s« M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
ge s of “S u
v a lu
e r th e
sum adapted from Ng & Smith (2012) Sta nce b je c e
URrI
: T u NTE cust
om e 18
e rs ’ e r ie t-b a
s e d e (S o u rc RPR r (S o
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

32. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
d S ac
ts an
en e fi
Functional/Instrumental Value AB Experiential/Hedonic Value
A cc
or d in g
to h
is m
and ode
l fo u
Correct/accurate attributes ns an
d qual
it y ma
nd a re
/or
exp
re ss
Sensory
r pr
im a
at io d em a a ls o ed i ry in
Utility he cu s tr a te g y
, oper
Ag a in o
nl y th e
s te n c
y
r
gen
cy (
] su
b je c
t to
n d iv
id u a Emotional
ex ch
te rp
re ta
n s of t e tin g , n te x t. cons
i
s to m e Wo th e lly o ange tio n
Appropriate performances th e v
er y fo u
n d a tio
9 0 te
xt s fro
m m a rk
in th
e b u s in
e ss co
ir c o
n c is e n
es s and
of va
lu e fo r
t he cu
a le V
C
oda
ll 2 0
03,
inflSocial/relational s of va
uen
ce o
r co
lle c t
iv e l
v a lu
e, w
h ere lu e
in e d s is o
f
s u se
d in th
e
fo rm
s ,S p p .5 y (a ca
Appropriate outcomes
fo rm H av
in g exa
m
te ra t
ur e an
a ly
d ou
th ow i
ti
n itio
ns v a rie
d
fiv e
p r im a
ry
d VC
,M a rk et
in g VC
– 6 ).
” Epistemicst very ty
f bo
th th
e
sag
e
as e
s of a li fi n
a in d
e fi ve r,
D e r iv
e su bj a lt)
v a lu fo r m ed d e r to ag H ow e , e c t’ by t
dal nt in o r d, and th o rs. :N et V C s va he c
ls F e fo ag em e si d ere ul ar au l lo w s lu e
act r th s con tf p a r tic a s fo syst
e ks ous vaelled the em
a m
o rs cus id e w a
in f l t o m s s s t h e w o r a l l l a b lu e
uen e r ( a cro d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
Con r
tio n a c e : W
l
sum Ra ood . 30) 4
e rs ’ all 2o 20 07, p
Val -B o n i ll 0 0 3 4 )
uat In ie s
ta , p .9 , p .1
io
z & ) 003
ánde n P ro dal
l2 -
z -F e r
n 120
Symbolic/Expressive Value
d v a lu e
(S á n
c ces
s
he
ri fic e
s (W oo -
Cost/Sacrifice Value
rc e iv
e sac
m s on
pe
ll (2 003) fits
a n d
rc h s tr
ea
rW ooda Ben
e
R esea Self-identity/concept/worth
et VC
a fte Economic
on N
Personal
View meaning Psychological
Self-expression c tiv e
on Personal investment
m ic
s ersp e
Social meaning &E
c ono
003
, p .7
)
kes an u
til it a r ia n
56«n
p
, p .1
20 in th
e
iv id u
al Risk
nt ll 2
ly ta )
me oda
ar009 d »Figuralue ifor ae in
e n d
Conditional Meaning te Man age
fo rm
s( S our
ce : Wo
e
V C clle 2 12 an
N et bul 03, p.
( V n e e n c u tio n s . T
e d o p e ri e s o l
b x
he
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s«
Sources of Value
M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
ge s of “S u
v a lu
e r th e
sum after Smith & Colgate (2007) S ta nce b je c e
URrI
: T u NTE cust
om e 19
e rs ’ e r ie t-b a
s e d e (S o u rc RPR r (S o
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

33. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»User Value«? Whati science is saying ...
e nef
ts an d
AB A cc
o rd i
ng t
o hi
“
s mo
a and del
a lity m /or fo u r
d qu nd a re exp p rim
io n s
an
em a a ls o re ss a ry
oper
at
y th e
d
] su ed i in te
a te g y
, nl gen b je c n d iv rp re
he cu s tr Ag a in o s te n c
y
cy ( id u a ex ch ta tio
s of t tin g , te x t. cons
i
to m e
r
Wo t to lly o ange
d a tio
n
m a rk
e
ss co
n
s and he cu
s th e ns o
Value for the customer (VC) is any
n m e es t oda in flu r co v a lu f va
er y fo u xt s fro e b u s in n c is e n lu e fo r C ll 2 0 ence lle c t e, w lu e
th e v f 9 0 te d in th e ir c o s of va ,S a le V 03, iv e l h ere ca
m in e d a ly s is o ti s u se d in th fo rm g VC p p .5 of b y (a as e
in g exa e an ow i ns v a rie r im a
ry
a rk et
in – 6 ). o th sag very
fo rm ur th p ” th e
demand-side, personal perception of advantage
H av te ra t d ou n itio fiv e ,M e s ta ty
s of a li fi n e fi ve r, e d VC su bj lt) b
fo r m ed d e r to ag a in d H ow e , D e r iv e c t’ y th
dal v a lu nt in o r d, and th o rs. :N et V C s va ec
ls e fo ag em e si d ere ul ar au l lo w s lu e
Fac r th s con tf p a r tic a s fo syst
arising out of a customer’s association with an
e cu ks ous vaelled the em
a
to rs s to m s id e w r
m
a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
organisation’s offering, and can occur as reduction
Con r
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
rs ’ V llil2o 2007,
a lu on l 0 0 3 4 )
in sacrifice; presence of benefit (perceived as
-B p .1
adieo In ie s ta , p .9 ,
á
t z
n
&
nP )
l2 003 -
-F e rn ro c oo dal 120
c hez ess (W
-
(S á n s
either attributes or outcomes); the resultant of any
d v a lu e ri fic e
rc e iv
e sac
m s on
pe
ll (2 003) fits
a n d
ea ooda e
„
h s tr Ben
weighed combination of sacrifice and benefit
R esea
rc
a fte rW
e t VC
w on N
V ie
(determined and expressed either rationally or ersp e
c tiv e
on
intuitively); or an aggregation, over time,
i cs p e
co n om ) til it a r ia n 20 in th
, p .7 an u , p .1 al
t &E ll 2 003
kes 56«n iv id u
em
en : Wo
oda ly ta )
ar009 d »Figuralue ifor ae in
e n d he
n ag S our
ce
C clle 2 12 an
( e e n c u tio n s . T
of any or all of these.
V V n
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s« M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
s of v a lu r th e
sum
e rs ’
Image Credit: ... S ta
ge
e r ie
nce Woodall 2003, p.21
“S u
b je c
e
t-b a
s e d e (S o u rc
e
URrI
: T u NTE
RPR
cust
om e
r (S o
20
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

34. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»User Value«? Whati science is saying ...
e nef
ts an d
AB A cc
o rd i
ng t
?
o hi
“
s mo
a and del
a lity m /or fo u r
d qu nd a re exp p rim
io n s
an
em a a ls o re ss a ry
oper
at
y th e
d
] su ed i in te
a te g y
, nl gen b je c n d iv rp re
he cu s tr Ag a in o s te n c
y
cy ( id u a ex ch ta tio
s of t tin g , te x t. cons
i
to m e
r
Wo t to lly o ange
d a tio
n
m a rk
e
ss co
n
s and he cu
s th e ns o
Value for the customer (VC) is any
n m e es t oda in flu r co v a lu f va
y fo u s fro b u s in c is e n e fo r ll 2 0 lle c t e, w
?
th e v
er
9 0 te
xt
in th
e
ir c o
n
of va
lu
a le V
C 03, ence iv e l h ere lu e
ca
T
f d e s ,S of b
m in e d a ly s is o ti s u se d in th fo rm g VC p p .5 y (a as e
g exa ow i v a rie ry in – 6 ). o th sag
A
fo rm in ur e an th ns p r im a a rk et ” th e very
demand-side, personal perception of advantage
H av te ra t d ou n itio fiv e ,M e s ta
H
s of a li fi n e fi ve r, e d VC su bj lt) b ty
fo r m ed d e r to ag a in d H ow e , D e r iv e c t’ y th
dal v a lu in o r and o rs. et V C s va
W
ls e fo em e
nt
d ere
d,
ar au
th
lo w s
:N lu e ec
Fac r th ag si ul l syst
s con tf p a r tic a s fo
arising out of a customer’s association with an
e cu ks ous vaelled the em
a
to rs s to m s id e w r
m
a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
organisation’s offering, and can occur as reduction
Con r
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
rs ’ V llil2o 2007,
a lu on l 0 0 3 4 )
in sacrifice; presence of benefit (perceived as
-B p .1
adieo In ie s ta , p .9 ,
á
t z
n
&
nP )
l2 003 -
-F e rn ro c oo dal 120
c hez ess (W
-
(S á n s
either attributes or outcomes); the resultant of any
d v a lu e ri fic e
rc e iv
e sac
m s on
pe
ll (2 003) fits
a n d
ea ooda e
„
h s tr Ben
weighed combination of sacrifice and benefit
R esea
rc
a fte rW
e t VC
w on N
V ie
(determined and expressed either rationally or ersp e
c tiv e
on
intuitively); or an aggregation, over time,
i cs p e
co n om ) til it a r ia n 20 in th
, p .7 an u , p .1 al
t &E ll 2 003
kes 56«n iv id u
em
en : Wo
oda ly ta )
ar009 d »Figuralue ifor ae in
e n d he
n ag S our
ce
C clle 2 12 an
( e e n c u tio n s . T
of any or all of these.
V V n
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s« M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
s of v a lu r th e
sum
e rs ’
Image Credit: ... S ta
ge
e r ie
nce Woodall 2003, p.21
“S u
b je c
e
t-b a
s e d e (S o u rc
e
URrI
: T u NTE
RPR
cust
om e
r (S o
20
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

35. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»User Value«? Whati science is saying ...
e nef
ts an d
AB A cc
o rd i
ng t
o hi
s mo
a and del
a lity m /or fo u r
d qu nd a re exp p rim
io n s
an
em a a ls o re ss a ry
oper
at
y th e
d
] su ed i in te
a te g y
, nl gen b je c n d iv rp re
he cu s tr Ag a in o s te n c
y
cy ( id u a ex ch ta tio
s of t tin g , te x t. cons
i
to m e
r
Wo t to lly o ange
d a tio
n
m a rk
e
ss co
n
s and he cu
s
oda th e r co v a lu ns o
y fo u
n
s fro
m
b u s in
e
c is e n
es e fo r
t
ll 2 0 in flu lle c t e, w f va
“
th e v
er
9 0 te
xt
in th
e
ir c o
n
of va
lu
a le V
C 03, ence iv e l h ere lu e
in e d s is o
f
s u se
d in th
e
fo rm
s ,S p p .5 of b y (a ca
m a ly ti d ry in g VC o th as e
in g exa ur e an th ow i ns v a rie p r im a a rk et – 6 ). th e sag very
fo rm H av li te ra t n d ou fi n itio r, fiv e d VC
,M ” su bj e s ta ty
s of m ed
a
e r to
fi
a in d
e
ow e
ve D e r iv
e
e c t’ lt) b
dal v a lu fo r in o r
d
and
ag
o rs.
H et V C
,
s va y th
ls e fo em e
nt
d ere
d,
ar au
th
lo w s
:N lu e ec
ag si ul l
(Perceived) Customer Value
Fac r th s con tf p a r tic a s fo syst
e cu ks ous vaelled the em
a
to rs s to m s id e w r
m
a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen
„
d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
must be seen as an ongoing
Con r
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
rs ’ V llil2o 2007,
a lu -B on l 0 0 3 4 )
adieo ie s ta , p .9 p .1
assessment within an evolving
In ,
á
t z
n
&
nP )
l2 003 -
-F e rn ro c oo dal 120
c hez ess (W
-
(S á n s
d v a lu e ri fic e
rc e iv
e sac
consumer relationship.
m s on
pe
ll (2 003) fits
a n d
rc h s tr
ea
rW ooda Ben
e
R esea a fte
e t VC
w on N
V ie
Sánchez-Fernández & Iniesta-Bonillo 2007, p.433on
ve
s rs p e c ti
m ic n pe e
co no ) til ita r ia 20 in th
, p .7 an u , p .1 al
t &E ll 2 003
kes 56«n iv id u
em
en : Wo
oda ly ta )
ar009 d »Figuralue ifor ae in
e n d he
n ag S our
ce
V C clle 2 12 an
( V n e e n c u tio n s . T
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s« M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
ge s of “S u
v a lu
e r th e
sum Image Credit: ... S ta nce b je c e
URrI
: T u NTE cust
om e 21
e rs ’ e r ie t-b a
s e d e (S o u rc RPR r (S o
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

36. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»User Value«? Whati science is saying ...
e nef
ts an d
AB A cc
o rd i
ng t
o hi
s mo
a and del
a lity m /or fo u r
d qu nd a re exp p rim
io n s
an
em a a ls o re ss a ry
oper
at
y th e
d
] su ed i in te
a te g y
, nl gen b je c n d iv rp re
he cu s tr Ag a in o s te n c
y
cy ( id u a ex ch ta tio
s of t tin g , te x t. cons
i
to m e
r
Wo t to lly o ange
d a tio
n
m a rk
e
ss co
n
s and he cu
s
oda th e r co v a lu ns o
y fo u
n
s fro
m
b u s in
e
c is e n
es e fo r
t
ll 2 0 in flu lle c t e, w f va
“
th e v
er
9 0 te
xt
in th
e
ir c o
n
of va
lu
a le V
C 03, ence iv e l h ere lu e
in e d s is o
f
s u se
d in th
e
fo rm
s ,S p p .5 of b y (a ca
g VC as e
Use r
g exa
m a ly ti v a rie
d ry in – 6 ). o th sag
in ur e an th ow i ns p r im a a rk et th e very
fo rm H av li te ra t n d ou fi n itio r, fiv e d VC
,M ” su bj e s ta ty
s of m ed
a
e r to
fi
a in d
e
ow e
ve D e r iv
e
e c t’ lt) b
dal v a lu fo r in o r
d
and
ag
o rs.
H et V C
,
s va y th
ls e fo em e
nt
d ere
d,
ar au
th
lo w s
:N lu e ec
ag si ul l
(Perceived) Customer Value
Fac r th s con tf p a r tic a s fo syst
e cu ks ous vaelled the em
a
to rs s to m s id e w r
m
a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen
„
d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
must be seen as an ongoing
Con r
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
rs ’ V llil2o 2007,
a lu -B on l 0 0 3 4 )
adieo ie s ta , p .9 p .1
assessment within an evolving
In ,
á
t z
n
&
nP )
l2 003 -
-F e rn ro c oo dal 120
c hez ess (W
-
(S á n s
d v a lu e ri fic e
rc e iv
e sac
r consumer relationship.
m s on
pe
ll (2 003) fits
a n d
se
h s tr
ea ooda Ben
e
u
R esea
rc
a fte rW
e t VC
w on N
V ie
Sánchez-Fernández & Iniesta-Bonillo 2007, p.433on
ve
s rs p e c ti
m ic n pe e
co no ) til ita r ia 20 in th
, p .7 an u , p .1 al
t &E ll 2 003
kes 56«n iv id u
em
en : Wo
oda ly ta )
ar009 d »Figuralue ifor ae in
e n d he
n ag S our
ce
V C clle 2 12 an
( V n e e n c u tio n s . T
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
o n s« M AR del
ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
ge s of “S u
v a lu
e r th e
sum Image Credit: ... S ta nce b je c e
URrI
: T u NTE cust
om e 21
e rs ’ e r ie t-b a
s e d e (S o u rc RPR r (S o
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

37. d V a lu es ear
o nN
e iv e R
V ie w
s
ri fic e
S ac
»User Value«? Whati science is saying ...
e nef
ts an d
AB A cc
o rd i
ng t
o hi
s mo
a and del
a lity m /or fo u r
d qu nd a re exp p rim
io n s
an
em a re ss a ry
“
at d a ls o ed i
, oper nl y th e gen ] su n d iv in te
cu s tr a te g y Ag a in o s te n c
y
cy ( b je c id u a ex ch rp re
s of t
he
tin g , te x t. cons
i
to m e
r
Wo t to lly o ange ta tio
d a tio
n
m a rk
e
ss co
n
s and he cu
s
oda th e r co v a lu ns o
y fo u
n
s fro
m
b u s in
e
c is e n
es e fo r
t
ll 2 0 in flu lle c t e, w f va
th e v
er
9 0 te
xt
in th
e
ir c o
n
of va
lu
a le V
C 03, ence iv e l h ere lu e
in e d s is o
f
s u se
d in th
e
fo rm
s ,S p p .5 of b y (a ca
m a ly ti d ry g VC o th as e
Value resides not in
g exa ow i v a rie in – 6 ). sag
fo rm in ur e an th ns p r im a ,M a rk et ” th e very
H av li te ra t n d ou fi n itio r, fiv e d VC su bj e s ta ty
s of m ed
a
e r to
fi
a in d
e
ow e
ve D e r iv
e
e c t’ lt) b
dal v a lu fo r in o r
d
and
ag
o rs.
H et V C
,
s va y th
ls e fo em e
nt
d ere
d,
ar au
th
lo w s
:N lu e ec
Fac r th ag si ul l syst
s con a r tic a s fo
the product purchased, not in
to rs e cu a tf p
ks ous vaelled the
m em
s to m s id e w r a
e wo bl
in f l e r ( a cro ss th a ll la u e
uen d
V C ) rg e d . W o o re 1 2 ).
c in g em(Sou VC (Figu
e
Con r
the brand chosen, not in the object
tio n a c e : W
l
su Ra
me o oda .4 3 0
)
p
rs ’ V llil2o 2007,
„
a lu -B on l 0 0 3 4 )
adieo In ie s ta , p .9 , p .1
t z ) 003
possessed, but rather in the
&
-F e rn
á n nP dal
l2
120
-
hez ro c oo -
(S á n
c ess s (W
d v a lu e ri fic e
rc e iv
e sac
003) d
consumption experience(s)
pe n
m s on ll (2 fits
a
rc h s tr
ea
rW ooda Ben
e
R esea a fte
e t VC
on N
derived therefrom.
V ie w
on
c tiv e
i cs p ersp e e
co n om ) til it a r ia n 20 in th
em
en t &E Holbrook 1999, p.8
: Wo
oda ll 2 003
, p .7
ly ta )
kes an u
ar009 d »Figuralue ifor ae in
e 56«n , p .1
n d
iv id u
al
he
n ag S our
ce
V C clle 2 12 an
( V n e e n c u tio n s . T
te Ma fo rm
s(
e N et bul 03, p. e d o p e ri e s o l
b x
p o ra ri m a ry
VC
fi ce s: T h T u r n ll 2 0
a hi s can eernativ n tu itiv
e
Cor 2: Fi
ve p sa cri eWood ch otueri.nT peting alt bjective »i observe.
r he
s is
in ig u re
1
fits a
nd
ce ( ft
sacf. l
t e a Va fo r c o m o
Th e F
f be ne if c
rni e
in s a rd t
.A .- la n c e
o d sa c
nperie ghted ag
a
du ct or e
us a th e
rh
M Ba ts a
nefir Ex nd wei e in me pro ss a r
er
e e
p ti o n . B m e a re d a V atlhe sa ion
u
ng p ro c
su m to p e s o f sse s anci
con Cus rn a ti
v
o F ig u th e b
al
th e r n te
foe ia
l p reo1s of
r
ver ct alonValu
s o ro d u
e, g fa c t 1 :
iv e g e n flu e n c in
an h e i
A Pr
e li m
e ct p
n ce xch e re t in a r
Pe rs p e xp
e r ie
e h
w SUM y mo
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ue er u la ti o,f p.4)
Val
Y: W
u sto
m c a lc U se OOD v
0 0 9 a lu e f o
c A LL
S F O n b u ll 2
ge s of “S u
v a lu
e r th e
sum Image Credit: ... S ta nce b je c e
URrI
: T u NTE cust
om e 22
e rs ’ e r ie t-b a
s e d e (S o u rc RPR r (S o
exp ,a
ETA u rc e
v a lu a te d c e In t r i ie nc nd T IO N
S OF : Wo
a ic ip ie n ns per a ls o

38. Experience Value?

39. Experience Value: An Example
Pre-Sales Sales After Sales
Ex Ante Transaction Ex Post Disposition
Supplements
Awareness Evaluation Purchase Delivery Use & Extensions Maintenance Disposal
Functional-Instrumental
Value Dimensions
Experiential-Hedonic
Symbolic-Expressive
Cost-Sacrifice Cost-Sacrifice
Value Dimensions in Time
Expectation Pre-purchase Purchase Interaction Product Service Consumption Post Experience Review
Setting Interactions
adapted from Kim & Mauborgne (2005), Shaw & Ivens (2002), Arnould, Price & Zinkhan (2003) and Woodall (2003) 24

40. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for Eco-
Money Footprint
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

41. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Value for Eco-
Money Footprint
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

42. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

43. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

44. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Profit Happieness
Belonging
Economy Ecology
Perspectives
on Value Psychology Sociology

45. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Profit Happieness
Belonging
Core
Values
Economy Ecology
Perspectives
on Value Psychology Sociology

46. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Profit Happieness
Belonging
Core Social
Values Responsibility
Economy Ecology
Perspectives
on Value Psychology Sociology

47. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Belonging
Core Social
Values Responsibility
Economy Ecology
Perspectives
on Value Psychology Sociology

48. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Belonging
Core Social
Values Responsibility
Economy Ecology
Perspectives
on Value Psychology Sociology

49. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Belonging
Core Social
Values Responsibility
Economy Ecology
Perspectives
on Value Psychology Sociology

50. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Belonging
Core Social
Values Responsibility
Economy Ecology
Perspectives
on Value Psychology Sociology

51. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Core Social
Values Responsibility
Economy Ecology
Perspectives
on Value Psychology Sociology

52. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Core Social
Values Responsibility
Economy Shared Ecology
Drivers
Perspectives
on Value Psychology Sociology

53. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Core Social
Values Responsibility
Economy Shared Reciprocity
Ecology
Drivers
Perspectives
on Value Psychology Sociology

54. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Economy Shared Reciprocity
Ecology
Drivers
Perspectives
on Value Psychology Sociology

55. Levels of
Value
ty
ie
c
So
em
st
y
os
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Economy Shared Reciprocity
Ecology
Drivers
Perspectives
on Value Psychology Sociology

56. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Economy Shared Reciprocity
Ecology
Drivers
Perspectives
on Value Psychology Sociology

57. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Economy Shared Reciprocity
Ecology
Drivers
Perspectives
on Value Psychology Sociology

58. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth
Economy Shared Reciprocity
Ecology
Drivers
Perspectives
on Value Psychology Sociology

59. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth
Economy Shared Reciprocity
Ecology
Drivers
Wellbeing
Perspectives
on Value Psychology Sociology

60. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth
Economy Shared Reciprocity
Ecology
Drivers
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

61. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

62. Levels of
Value
ty
ie
c
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

63. Levels of
Value
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

64. Levels of
Value
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

65. Levels of
Value Value Proposition(s)
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

66. Value Propositions
Origin, Definition, Future ...

67. Hacking
Functionality Meaning 31

68. Hacking
Functionality Meaning 31

69. Examples: Cake Mix in the 1950s
+
32

70. Examples: Same Product – Two Meanings
Cage Hen Egg Free Range Hen Egg
33

71. Examples: Redefine the Wheel Chair Experience
Image Credit: Michael Seymour for New Halls Wheels (http://mjseymour.com); Photo by Annie Leibovitz 34

72. Examples: Aeron – Most Successful Chair in the World
35

73. Examples: Aeron – Most Successful Chair in the World
“ When we showed early prototypes to
customers, they asked if they could see a
„
finished upholstered model instead of a
semifinished prototype. They could not
believe that was the final version.
Bob Wood, VP Research, Design & Development,
Herman Miller (in Verganti 2009)
35

74. Examples: Portable Music Player Evolution
36

75. Examples: Nest
37

76. Meaning
Meaning
Values/Identity
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

77. Meaning
Meaning
Values/Identity
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

78. Meaning
Does this do what I need?
Meaning
Values/Identity
Emotions
Price
Features
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

79. Meaning
… at a price that’s worth it?
Meaning
Values/Identity
Emotions
Price
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

80. Meaning
How does it make me feel?
Meaning
Values/Identity
Emotions
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

81. Meaning
Is this me?
Meaning
Values/Identity
Values/Identity
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

82. Meaning
Does it fit into my world?
Meaning
Meaning
Values/Identity
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

83. Meaning
Meaning
Values/Identity
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

84. Meaning
Meaning
Values/Identity
Emotions
Price
Features
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org) 38

85. Meaning
Context Value
Single-stimulus Value
Unanticipated Value Sign Value
Extrinsic Value
Epistemic Value Desired Value
Intrinsic Value
Means-end Value Ethical Value Image Value Meaning
Status Value Private Meaning Value Values/Identity
Spiritual Value Emotional Emotions
Social Value Value
Experience Value
Price
Play Value Features
Possession Value Aesthetic Value
Dual-stimulus Value
Transaction Value
Exclusive Value
Utility Value
Public Meaning Value
Adapted from Nathan Shedroff (www.nathan.com/thoughts & www.makingmeaning.org)

86. The Five Factors of Experience Research
1. Physical. How do people experience their physical interaction with things?
2. Cognitive. How do people associate meanings to things they interact with?
3. Social. How do they behave in teams or in social settings?
4. Cultural. How do people experience shared norms, habits, and values?
5. Emotional. How do people experience their feelings and thoughts?
Kumar (2009) 40

87. Progression of Economic Value
Differentiated Relevant to
Customization
Guide
Transformations
Customization
Competitive Position
Needs of Customers
Stage
Experiences
Commoditization
Make
Goods
Commoditization
Extract
Commodities
Commoditization
Undifferentiated Irrelevant to
Market Pricing Premium
41

88. Progression of Economic Value TRANSFORMATION
?
Differentiated EXPERIENCE Relevant to
Customization
Guide
Transformations
SERVICE
Customization
Competitive Position
Needs of Customers
PRODUCT
Stage
Experiences
Commoditization
COMMODITY Shared Value?
Make
Goods Experience Value
Commoditization
hedonic, social value, etc.
Extract Sign Value
Commodities
Commoditization
Use Value
Utilitarian Value
Undifferentiated Irrelevant to
Exchange Value
Market Pricing Premium
42

89. Levels of
Value
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

90. Levels of
Value Value Proposition(s)
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

91. »Value Proposition«? What science is saying ...
“ Value propositions should be crafted:
as a reciprocal exchange of value; described
in terms of perceived benefits or reduced costs;
transparent about to whom that value should flow
and how; perceived as a fair exchange of value;
delivered over a time frame longer than a single
transaction; often co-created through interaction
„
between two or more parties; and, congruent
with the relationship objectives set
for a particular market.
Ballantyne, Frow, Varey & Payne (2011) 45

92. Levels of
Value Value Proposition(s)
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

93. Levels of
Value Value Proposition(s)
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Economy Shared Environment Ecology
Drivers Reciprocity
Wellbeing Meaningful Life
Perspectives
on Value Psychology Sociology

94. Value Creation

95. Value Creation
Production Perspective
Joint production process: the Customer
participates as co-producer of resources and Customer’s
processes with the provider Independent
Value Creation
Customer’s
Production Interaction Value Creation
Provider’s Value
Value Creation Perspective
Facilitation
Joint value creation process: the Provider
participates as co-creator of value with the
customer
Time
adapted from Grönroos (2011) 48

96. Product/Service Ecosystems
Image Credit: http://subprint.com/blog/it%27s-the-ecosystem,-stupid 49

97. Business Ecosystem?
“A value network model visualizes
specific interactions within the network to
provide a perspective for understanding
value-creating roles and relationships,
and to offer a dynamic view of how both
financial and non-financial assets are
converted into negotiable forms of value.”
Ouden, E. den (2011), p.154
Image Credit: http://www.elkedenouden.com/AboutElke.html 50

98. Apple’s Business Ecosystem
®
Other
Stakeholders
Lowest
Production
Service Contract
Costs
Infrastructure
Sponsoring / Discounts Management
Manufacturing
High Volume and Knowledge
Planning Certainty IP royalties / Commission
Core Value
Bulk Purchases
Proposition
??? Digital Sales Channel with
Reputation and DRM and wide Spread
Awareness
Media Delivery
Apple on Campus
Complementary
??? New Business Ideas
Apple
Offerings
Comission
Price Premium Platform
IP royalties App
(Hardware,
Media and Purchases
Personal App Sales)
Data Seamless User Sales Platform
Reputation Experience
Technical and
Sales Training
Higher Margins :
Apple Price
Premium
Enriched User Broad Service
Experience Station Covering
Higher Margins Supplying and
via Apple Price
Premium
Enabling Network
TM
Goods & Services
Money & Credits
Information
Intangible Value
51

99. Apple’s Business Ecosystem
Hardware OEM's:
e.g. Foxconn
Lowest
Production
Service Contract
Costs
Infrastructure
Sponsoring / Discounts Management
Manufacturing
High Volume and Knowledge
IP royalties / Commission
Technical Backend
Planning Certainty
Providers: e.g. SAP
Schools and
Universities Bulk Purchases
??? Digital Sales Channel with
Reputation and DRM and wide Spread
Awareness
Media Delivery
Apple on Campus
??? New Business Ideas
Apple Comission
Price Premium Platform
IP royalties App
(Hardware,
Purchases
Microsoft, Personal
Media and
App Sales) Media Industries
Google, Data Seamless User Sales Platform
etc. Reputation Experience Developer
Technical and Community
Sales Training
Apple Higher Margins :
Apple Price
Users Premium
Enriched User Broad Service
Experience Station Covering
Retail/Certified
Apple Software Higher Margins Partners: e.g. Gravis
Communities Developers: via Apple Price
e.g. Adobe Premium Official
Accessory
Manufacturers:
Goods & Services e.g. Belkin
Money & Credits
Information
Intangible Value
52

100. Customer Supplier Godfather Competitor
Intermediary Enabler Financier Provider of Content
Marketing &
Provider of Services Provider of Systems Provider of Goods Communications

101. Align and Balance Value Flows
Goods & Services Goods & Services
Money & Credits Money & Credits
Information Information
Intangible Value Intangible Value

102. Apple’s Business Ecosystem
Hardware OEM's:
e.g. Foxconn
Other
Stakeholders
Lowest
Production
Service Contract
Costs
Infrastructure
Sponsoring / Discounts Management
Manufacturing
High Volume and Knowledge
IP royalties / Commission
Technical Backend
Planning Certainty
Providers: e.g. SAP
Schools and Core Value
Universities Bulk Purchases Proposition
??? Digital Sales Channel with
Reputation and DRM and wide Spread
Awareness
Media Delivery
Apple on Campus
Complementary
??? New Business Ideas
Apple Comission
Offerings
Price Premium Platform
IP royalties App
(Hardware,
Purchases
Microsoft, Personal
Media and
App Sales) Media Industries
Google, Data Seamless User Sales Platform
etc. Reputation Experience Developer
Technical and Community
Sales Training
Apple Higher Margins :
Apple Price
Users Premium
Enriched User Broad Service
Experience Station Covering
Retail/Certified
Apple Software Higher Margins Partners: e.g. Gravis Supplying and
Communities Developers: via Apple Price
Premium Official
Enabling Network
e.g. Adobe
Accessory
Manufacturers:
Goods & Services e.g. Belkin
Money & Credits
Information
Intangible Value
55

103. Apple’s Shared Value Creation?
Value Proposition(s)
ty
ie
c
Transformation
So
em
st
y
os
Doing good
tion
Ec
sa
ni
Doing Well
ga
Or
er
Us
Experience
Value for Eco-
Money Footprint
Eco-
Profit Happieness Effectiveness
Stability Belonging
Sustainability
Core Social
Values Responsibility
Wealth Livability
of the
Shared Environment
Drivers Reciprocity
Wellbeing Meaningful Life
Value Framework Model by Elke den Ouden (2011)

104. Once again ...
“ Value propositions should be crafted:
as a reciprocal exchange of value; described
in terms of perceived benefits or reduced costs;
transparent about to whom that value should flow
and how; perceived as a fair exchange of value;
delivered over a time frame longer than a single
transaction; often co-created through interaction
„
between two or more parties; and, congruent
with the relationship objectives set
for a particular market.
Ballantyne, Frow, Varey & Payne (2011) 57

105. Aha!
“An end customer's value-in-use
assessment is the culmination of a
time-series of interactions, including value
propositions and negotiated agreements as
„
well as value-in-use determinations
by various resource providers and
integrators.
Ballantyne, Frow, Varey & Payne (2011) 58

106. Your Turn!

107. If you were Square ...
45:
MI
NU
T
00
ES
Image Credit: © 2012 Square (http://squareup.com) 60

108. STAY TUNED!
www.uservalue.de
61

109. Attributions
“Gears” symbol by Dima Yagnyuk // "Type Desgin" symbol by Andrew J. Young // “Compass” symbol by Adam Whitcroft // “Refresh” symbol by Joris
Hoogendoorn // “Pointer” symbol by ___Lo // “Speaker” symbol by Harold Kim // “Book” symbol by Ahmed Hamzawy // “Unlock” symbol by Ugur
Akdemir // “Heart” symbol by John Caserta // “Like” symbol by Marwa Boukarim // “Letter” symbol by John Caserta // “Lock” symbol by Dave
Tappy // “Cess” symbol by Alessandro Suraci // “Social Services” by Jack Biesek, Gladys Brenner, Margaret Faye, Healther Merrifield, Kate Keating,
Wendy Olmstead, Todd Pierce, Jamie Cowgill, Jim Bolek // “Building” symbol by Antonis Makriyannis // “Brain” symbol by Arjun Adamson //
“Building Block” symbol by Michael Rowe // “City” by inna belenkey // “Basket” symbol by Roman J. Sokolov // “Unlock” symbol by Ugur Akdemir //
“Hand” symbol by Jakob Vogel as well as "Home" and "Umbrella" from The Noun Project collection.
------------------------------------------------------------------------------------------------------------------------------------------------------------
Some References this Workshop/Presentation was based on:
Arnould, E. J., Price, L., & Zinkhan, G. M. (2003). Consumers (2nd ed.). New York: McGraw-Hill/Irwin.
Ballantyne, D., Frow, P., Varey, R. J., & Payne, A. (2011). Value propositions as communication practice: Taking a wider view.
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