Value in business

What is value

From an organization's perspective, value is deemed as loyalty from customers evidenced through their quick response to efforts of cross-selling and regularly reffering the organization to potential customers. Ulaga (2001)

From a customer's perspective, value is the quality and responsiveness they enjoy from an organization's product and services, their social interactions and the reduced level of anxiety through trust built over time with the organization. Ulaga (2001)

How to create value

One way to create value according to research by Amit and Zott(2012) is to  avail platforms on which your customer can interact with each other. 

These platforms create a networking effect for customers if made relevant.  They attract many customers enabling a wider customer base interaction. 

Such platforms provide consumers with opportunities to transact at lower costs and reduce their cost of searching for solutions given the interaction they enjoy with other customers.

In return, loyalty grows, trust is built, cross selling occurs and value continues to grow.

 References

Amit, R. and Zott, C., (2012). Creating value through business model innovation. 2012.

Ulaga, W., (2001). Customer value in business markets: an agenda for inquiry. Industrial Marketing Management, 30(4), pp.315-319.