Comments on: Business Modelling: Value Propositon vs. Value Perception

By: What business are you in? Business models as social constructs | Business Model Innovation

Wed, 08 Jun 2011 11:17:01 +0000

[...] Ask customers the question of your value proposition. The answer will be different again. Do your customers understand your value proposition? Do you offer the value you promise with your value architecture also? (see post on value perception vs. value proposition). [...]

By: Dana

Dana — Thu, 10 Feb 2011 12:02:38 +0000

This is true, there is a very difference between proposition and perception. In any business there will always be different opinions and points of view, that will guide to changes. But this is the beauty of working with people, isn’t it?

By: Content Strategy based on the Value Proposition | Copacetic - Digital Web Media

Fri, 03 Dec 2010 02:54:32 +0000

[...] Business Modelling: Value Propositon vs. Value Perception | Business Model Innovation. [...]

By: Brands are the icing on the business model | Business Model Innovation

Brands are the icing on the business model | Business Model Innovation — Tue, 16 Nov 2010 15:39:06 +0000

[...] something you cannot fulfill. If you focus too much on branding you create over the long run, a perception gap between what you promise and what you deliver. It is like the icing on the wedding cake. It looks [...]

By: Erwin Fielt

Erwin Fielt — Tue, 05 Oct 2010 14:20:50 +0000

Hi Patrick, I did some further research into the value proposition, see also http://fieltnotes.blogspot.com/2010/09/understanding-and-defining-value.html

Defining, testing and improving on the value proposition seems to me one of the essential elements in business model management and where a link is made between strategic, marketing and operations management (what do we want to offer, what do our customer expect, and what can we offer).

By: Patrick Stähler

Patrick Stähler — Mon, 06 Sep 2010 13:29:02 +0000

Hi Erwin, thanks for pointing out the differences between subjective and objective value and the literature on service quality.

I just closed a customer project where this gap between their value proposition and the value perception was key. We did a snapshot of how the company representatives “sold” the company to prospects vs. the formulated value proposition. We did not a comparison between customers and the value proposition but even an internal comparison was interesting since it the showed the difference between the strategy and the daily argumentation of the customer facing employees. And as quite often, the intended and well formulated value proposition aka strategy was not as good as the emergent argumentation of the employees. The employees focused on two to three important points and on the points customer valued.

Looking forward to further comments of you. Thanks in advance. Patrick

By: Erwin Fielt

Erwin Fielt — Thu, 02 Sep 2010 02:05:00 +0000

Very much aligned with this is the differentiation between (subjective) use value (objective) exchange value. See also http://fieltnotes.blogspot.com/2010/06/on-value-in-business-model-definitions.html.

This gap between customer and provide is in fact one the main topics in service quality literature, where they use a gaps model (Zeithaml, Parasuraman & Berry), which differentiates between expected service, perceived service and delivered service.

By: Patrick Stähler

Patrick Stähler — Tue, 27 Apr 2010 15:40:10 +0000

@Kay You mention an interesting and important point. As the old proverb goes: You get what you measure.

A typical paradox is the banking industry. Trust is the most important asset of traditional banking but bankers are measured for short term profits. And that is one of the reasons for the huge perception gap in the financial industry.

The art of management is to fine tune the whole business model and the incentive systems to support the value proposition.

By: The case for being disruptively good | InnovationManagement

The case for being disruptively good | InnovationManagement — Mon, 26 Apr 2010 14:54:28 +0000

[...] your customers and thinking long term. On a similar theme, the ideas of this post about explicating the difference between intended and experienced customer value when business modeling are worth taking to [...]

By: Kay Plantes

Kay Plantes — Wed, 21 Apr 2010 18:15:09 +0000

Leaders often see the world through rose colored glasses that prevent the kind of harsh self-assessment recommended when perception does not match proposition. One of the elements of the business model therefore that becomes important is how you measure success. You must assess if your desired value promise is being realized and having the impact on market share, etc. you hope it will have. Do you see many companies aligning their measures with their business model?