Are the attributes features or potential benefits that consumers consider when reviewing possible solutions to a problem?

What customers value in a product or service can be hard to pin down. Often an emotional benefit such as reducing anxiety is as important as a functional one such as saving time. How can managers determine the best way to add value to their offerings?

The Answer

The authors describe 30 “elements of value” that meet four kinds of need—functional, emotional, life changing, and social impact—and that, when optimally combined, increase customer loyalty and revenue growth.

The Opportunity

The elements of value work best when a company’s leaders recognize their ability to spark growth and make value a priority. Companies should establish a discipline around improving value in three areas: new-product development, pricing, and customer segmentation.

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Empowerment Series: Psychopathology: A Competency-based Assessment Model for Social Workers

Gray/Zide

34. Consumers can handle only a small number of comparisons before overload sets in.

35. Consumers cannot make good choices when considering only a single attribute.

36. When information about some attributes is missing, consumers tend to weigh the criteria that are common to both alternatives quite heavily in the evaluation.

37. One way to determine the criteria that consumers use when judging products is to directly ask them through surveys.

38. Cluster analysis is used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria and the expected utility associated with the alternatives.

39. “Choice” means that a particular alternative will be chosen.

40. Two major types of rules that consumers use when selecting products are objective rules and subjective rules.

41. Compensatory rules allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute.

42. When absolute rules are used, strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration.

43. Consumer researchers have identified four major categories of noncompensatory rules: the conjunctive rule, the disjunctive rule, the conjoint rule, and the cluster rule.

44. Following the lexicographic rule, the consumer sets a minimum mental cutoff point for various features and rejects any PRODUCT that fails to meet or exceed this cutoff point across all features.

45. Following disjunctive rule, beginning with the most important feature, the consumer eliminates options that don’t meet or surpass the cutoff point on this important feature. Then the consumer moves on to the next most important feature and repeats the process until only one option remains.

46. The conjunctive and EBA rules can result in the same decision if the same cutoff points are used for both rules.

47. Compensatory rules are often used in low-involvement situations.

48. Consumers can combine decision rules to arrive at a final solution.

49. Consumers actually use decision rules quite frequently, but the comparisons are almost always made mentally rather than using mathematical formulas.

50. Sometimes consumers will decide where they will buy before they determine what they will buy.

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