Is the Opportunity Real and Large Enough? Refine the Customer Value Concept

Chandra S. Mishra
Additional contact information
Chandra S. Mishra: Florida Atlantic University

Chapter Chapter Four in Getting Funded, 2015, pp 79-100 from Palgrave Macmillan

Abstract: Abstract This chapter presents a framework and tools to assess and refine the customer value concept. The three key questions the entrepreneur may ask when reformulating the customer value concept are whether the customer pain is real and widespread, whether the relative advantage of the new product is superior enough for the product to sell, and whether the customer is willing to pay for the relative advantage of the product. The customer value concept should be refined to maximize the likelihood of the new product’s acceptance in the market. The target customer group may need to be redefined. The relative advantage of a new product should be superior to compensate for the entrepreneur’s self-selection bias and the consumer’s loss aversion bias. A framework is provided to determine the competitive price of a product. The seller may charge a price premium for a new product when the perceived value of the product is significantly greater than the cost to serve the customer.

Keywords: Relative Advantage; Price Structure; Opportunity Real; Product Offering; Price Point (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-38450-8_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137384508

DOI: 10.1057/9781137384508_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().