The purpose of this paper is to describe and provide a guide to design and price a service offering based on customer value. The customer value proposition framework helps to convert discovered customer specific value into tangible and intangible service offering. The service offering is priced according to quantified customer values (both tangibles and intangibles). This paper describes the process of designing and supporting value-based pricing of advanced services through quantification of customer value. In particular, the framework helps to convert value offered into quantified customer-specific value, justifying the price difference between offerings and the best available alternative on the market.
2. 6th International Conference on Business Servitization, Barcelona 2017 | West, Kujawski, Rapaccini
Introduction
Problem and purpose of this presentation
… to provide a guide to design and price service offerings based on
customer value
This paper describes the
process of designing and
supporting value-based
pricing of services through
quantification of customer
value
… to describe the process and the results results of two cases
based on the pricing and design of advanced services
Purpose of this presentation
…manufacturers shift towards the provision of integrated product
service solutions solutions – how can they prices these offers?
Problem
3. 6th International Conference on Business Servitization, Barcelona 2017 | West, Kujawski, Rapaccini
The customer perceives positive net benefits by solutions and it results in a willingness to pay
Introduction
Classification of value
“..manufacturing companies are currently
competing for the identification of innovative value
propositions to position themselves in the market
and this led to a shift from providing traditional
transaction-based and towards the provision of
integrated solutions”
(Pezzotta, et al. 2014)
“…companies fail to account for collective and
relational goals in customer solutions, a
mismatch can occur between firms’ solutions
and those that customers envision”
(Epp and Price, 2011)
”prices should be coherent to the ‘value scope’
of the solution to the customer’s problem”
(Osterwalder and Pigneur, 2014)