Page 30 - Creating Value 2020
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CREATING VALUE
THE ELEMENTS OF VALUE The functional element help consumers
deal with complexities in their world.
The amount and nature of value in a
product or service always lie in the Our model traces its roots to Abraham
eye of the beholder. Maslow’s “hierarchy of needs,” which was
first published in 1943. A psychologist,
Yet universal building blocks of value Maslow argued that human actions arise
do exist, creating opportunities for from an innate desire to fulfil needs
companies to improve performance in ranging from the very basic (security,
current markets or break into new warmth, food, rest) to the complex (self-
ones. esteem, altruism). Almost all marketers
today are familiar with Maslow’s
A rigorous model of consumer value hierarchy. Click Maslow Hierarchy of
allows a company to come up with Values Model to see the Maslow model.
new combinations of value that its
products and services could deliver. The ‘Bain’ elements of value approach
extends his insights by focusing on people
Analysis by Bain & Co, writing in the as consumers—describing their behaviour
Harvard Business Review revealed as it relates to products and services. It
that the right combinations pay off in may be useful to compare Maslow’s
stronger customer loyalty, greater thinking with the Bain consumer and B2B
consumer willingness to try a models on the previous and next pages.
particular brand, and sustained
revenue growth. Work your way up each of the Bain
pyramids for an insight into ‘Why they
Bain identified 30 elements of value — buy’.
fundamental attributes in their most
essential and discrete forms. These
elements fall into four categories: ‘Elements of Value’ information
functional, emotional, life changing, reproduced here was published in the
and social impact. See the elements of Harvard Business Review by Bain &
value pyramid on the previous page. Company, headquartered in Boston,
Massachusetts. It is one of the "Big Three"
Some elements are more inwardly management consultancies. The firm
focused, primarily addressing provides advice to public, private, and
consumers’ personal needs. For non-profit organizations.
example, the life-changing element
motivation is at the core of Fitbit’s Read the Harvard Article in full here:
exercise-tracking products. Others are https://hbr.org/2016/09/the-elements-of-value
outwardly focused, helping customers
interact in or navigate the external
world.
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