THE ELEMENT OF VALUES

(MEASURING AND DELIVERING WHAT

CONSUMER REALLY WANTS)

PRESENTED BY:
JYOTIRMAYEE PATRA
K.SHIVANI
PRIYANKA SENAPATI
SUSMITA PATNAIK
SUBAHNAKAR DEBATA
UJJAL SAHU
SYNOPSIS
The study aims to examine the effects of values of the product
delivered by the brand on the consumer buying behaviour.
The study attempts to achieve a categorization of the values
on the lines of Maslow's need hierarchy.
This hierarchy provides a set of values which are functional,
emotional, life changing or of social impact and deciding their
required permutations and combinations to achieve the sales
goals.
MARSHLOWS NEED HIERARCHY
The Maslows need hierarchy is represented below:

Self
Actual
isatio
n

Esteem needs

Love needs

Safety needs

Physiological needs
WHAT IS VALUE ?
Value can be said as the sum total of the tangible and
intangible benefits a consumer derives from a good, service or
idea.
The buyer normally buys the product fro which he or she can
derive the maximum values for a given cost.
The level of satisfaction derived from a good or service is
determined by the value it delivers to the consumer.
Thus needs give rise to demand, demand give rise to values
and values give satisfaction.
In order to understand consumer behaviour it is highly
imperative to understand what values a product would deliver
for a given need of consumer for the given price.
ELEMENT OF VALUES
Although the value of a product lies in the eye of the beholder
it is possible to generalise the same into an universal set to
some extent.
Here 30 such values are determined which fall into four
categories i.e. functional, emotional, life changing and social
impact.
The right combination of these values results in greater
consumer loyalty, higher chances of consumer trying the
brand and greater and sustained revenue growth.
These values are not derived from the discrete choice analysis
where the consumer is asked to react on a preconceived idea
of value. Rather here the consumer is asked about his/her
preferences and then the values addressing those preferences
are identified and tested with the consumers.
VALUE PYRAMID
GROWING REVENUE
To determine the effects of values on marketing, the
relationship between the values and NPS of the brand was
studied.
First Hypothesis: Companies performing better on multiple
elements had higher loyal customers than others. Companies
with a score of 8 or above in four or more elements had higher
NPS than the companies with high score in one or none of the
elements. For example, Apple led the group of companies with
highest NPS and scored high in 11 elements.
Second Hypothesis: Companies performing higher on multiple
elements will have higher revenue growths than those with
only high score. This was again confirmed by the finding that
the companies with high scores in four elements had a four
times revenue growth than those with one high score.
Another study was whether the elements of values
corresponded to the market growth in the digital marketing
sector in the recent times. This was proven to be affirmative
through the scores of amazon who scored high on eight
functional elements which helped it to succeed with the
recent service of amazon prime.
The inherent question in the case was whether it is possible
to add all thirty elements in a product. Realistically this is
impossible as a company has to choose from a set of elements
and work on its core competencies to stay ahead in the
market.
PATTERNS OF VALUES
The study of the pattern of values answers whether the
companies need to focus on a some elements more than
others. If there are elements which are more relevant that
others. Do the companies have to compete in the upper levels
of the pyramid to stay in the war or can they afford to be in the
lower strata and still succeed.
Quality fares higher than any element in the pyramid across all
the segments.
For some industries like that offering utility services have to
concentrate on the functional element and those with luxury
offering rely on life changing element. Still some companies
like TATA focus on the self transcendence element which
delivers the value of social impact.
PUTTING ELEMENTS TO WORK
Companies have accepted the might of values in marketing
and thus started the hunt for values in their product. In order to
achieve the same there are many ways followed by the brands.
Structured Listening.
Ideation session
Customer centric design of prototype concept.
Rigorous choice modelling.
GETTING STARTED WITH VALUES
The leaders has to recognise the importance of values and
incorporate it in the below processes:
New product development.
Pricing.
Customer segmentation.
THANK YOU