{"id":183,"date":"2018-12-27T17:28:50","date_gmt":"2018-12-27T22:28:50","guid":{"rendered":"http:\/\/pressbooks.library.upei.ca\/smallbusinessmanagement\/chapter\/your-business-idea-the-quest-for-value\/"},"modified":"2020-01-06T09:58:23","modified_gmt":"2020-01-06T14:58:23","slug":"your-business-idea-the-quest-for-value","status":"publish","type":"chapter","link":"https:\/\/pressbooks.library.upei.ca\/smallbusinessmanagement\/chapter\/your-business-idea-the-quest-for-value\/","title":{"raw":"Chapter 4: Your Business Idea: The Quest for Value","rendered":"Chapter 4: Your Business Idea: The Quest for Value"},"content":{"raw":"
\r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"233\"]\"image\" Cheshire Package Store Used with permission from Robert Brown.[\/caption]\r\n\r\n
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Robert Brown has been the owner and operator of the Cheshire Package Store for 25 years. It is one of several liquor stores in this town of 25,000 people. Some of his competitors are smaller or approximately the same size, and one is significantly larger. Robert is very clear in his understanding of what gives his store a competitive edge. He believes his establishment provides the setting that makes a customer feel at home. \u201cMy feeling has always been that small businesses must have a feeling of comfort. If your customers do not feel that they can ask you questions about the product or if they feel that they are imposing on you, then they are not likely to return.\u201d<\/span><\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n

Robert took every opportunity available to better understand his customers and provide them with value. One way his business does this is by developing a personal relationship with its customers. This may mean carefully looking at checks or credit cards, not for security reasons, but to identify customers by name. Robert points out that he always pays careful attention to what customers like and dislike; by doing so, they develop confidence in his suggestions. To foster this confidence, he and his family actively engage their customers in conversations. Customers, Robert, and the employees share stories, which is a key way to build better customer relationships. By listening to his customers, Robert can identify what they are looking for and assist him in knowing what new products he might offer.<\/p>\r\n

In addition to this personalized level of service, the Cheshire Package Store also recognizes the importance of other factors. Robert talks about the importance of maintaining a well-lit store with spacious aisles, making it an inviting place in which to shop. He is careful about even minor details, such as assuring that there are open parking spaces near the entrance to his store. He recognizes that even walking short distances to or from the store might be a burden or deterrent for his customers. Robert\u2019s store possesses a cutting-edge inventory software package designed specifically for liquor stores. It enables him to track inventory levels, which can provide estimates for future inventory levels of different products; however, he sees this as a guide only. As he puts it, \u201cYour knowledge of your customers will be the key determinant for your success.\u201d<\/p>\r\n

Robert also strongly believes that the success of a small business depends on the owner being there. Stores have their own personality, in his view, and that personality is created by the owner. This personality imparted by the owner impacts all operational aspects of the business\u2014\u201cYour employees will pick up on what you expect, and they will know what your customers deserve.\u201d<\/p>\r\n\r\n<\/div>\r\n

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Defining the Customer\u2019s Concept of Value<\/h1>\r\n
\r\n

Learning Objectives<\/h3>\r\n
    \r\n \t
  1. Define customer value.<\/li>\r\n \t
  2. Understand the five sources of perceived customer benefits.<\/li>\r\n \t
  3. Understand the three sources of perceived costs.<\/li>\r\n<\/ol>\r\n<\/div>\r\n
    \r\n
    \r\n

    Look beneath the surface; let not the several qualities of neither the thing, nor its worth escape thee.<\/p>\r\n

    Marcus Aurelius Antoninus<\/p>\r\n<\/blockquote>\r\n<\/div>\r\n

    In the previous chapter, Peter Drucker and W. Edward Deming placed the customer at the center of their definitions of the purpose of a business. They used the customer as being at the core of that purpose rather than focusing on financial measures such as profit, return on investment (ROI), or shareholders\u2019 wealth. Drucker\u2019s logic was that if a business did not create a sufficient number of customers, there never would be a profit with the business. Deming argued that delighting customers would become the basis for them to consistently return, and loyalty would ensure that the business would have a higher probability of surviving in the long term. The clearest way of doing that is by focusing on providing your customers with a clear sense of value. This emphasis on value will produce economic benefits. Gale Consulting explains the notion of value this way, \u201cIf customers don\u2019t get good value from you, they will shop around to find a better deal.\u201d\u00a0[footnote]\u201cWhy Customer Satisfaction Fails,\u201d Gale Consulting<\/em>, accessed December 2, 2011, www.galeconsulting.com\/index.php?option=com_content&view=article&id= 18&Itemid=23<\/a>.[\/footnote]<\/span><\/p>\r\n

    A recent study put it this way, \u201cThese firms have been successful\u2026by consistently creating superior [pb_glossary id=\"676\"]customer value[\/pb_glossary]<\/strong><\/em><\/a>, <\/span><\/span>and profiting handsomely from that customer value.\u201d[footnote]George Day and Christine Moorman, Strategy from the Outside In<\/em> (New York: McGraw Hill, Kindle Edition, 2010), 104\u201310.[\/footnote]<\/span><\/p>\r\n

    Strong evidence indicates that this focus on making the customer central to defining the business translates into economic success. It has been estimated that the cost of gaining a new customer over retaining a current customer is a multiple of five. The costs of regaining a dissatisfied customer over the cost of retaining a customer are ten times as much.[footnote]Forler Massnick, The Customer Is CEO: How to Measure What Your Customers Want\u2014and Make Sure They Get It<\/em> (New York: Amacom, 1997), 76[\/footnote]<\/span> So a key question for any business then becomes, \u201cHow does one then go about making the customer the center of one\u2019s business?\u201d<\/p>\r\n\r\n

    \r\n

    What Is Value?<\/h2>\r\n

    It is essential to recognize that value is not just price. Value is a much richer concept. Fundamentally, the notion of customer value is fairly basic and relatively simple to understand; however, implementing this concept can prove to be tremendously challenging. It is a challenge because customer value is highly dynamic and can change for a variety of reasons, including the following: the business may change elements that are important to the customer value calculation, customers\u2019 preferences and perceptions may change over time, and competitors may change what they offer to customers. One author states that the challenge is to \u201cunderstand the ever changing customer needs and innovate to gratify those needs.\u201d\u00a0[footnote]Sudhakar Balachandran, \u201cThe Customer Centricity Culture: Drivers for Sustainable Profit,\u201d Course Management<\/em> 21, no. 6 (2007): 12.[\/footnote]<\/span><\/p>\r\n

    The simple version of the concept of customer value is that individuals evaluate the perceived benefits of some product or service and then compare that with their perceived cost of acquiring that product or service. If the benefits outweigh the cost, the product or the service is then seen as attractive (see Figure 4.1 \"Perceived Cost versus Perceived Benefits\"<\/a>). This concept is often expressed as a straightforward equation that measures the difference between these two values:<\/p>\r\ncustomer value = perceived benefits \u2212 perceived cost.<\/span><\/span>\r\n

    \r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"426\"]\"image\" Figure 4.1 Perceived Cost versus Perceived Benefits[\/caption]\r\n\r\n<\/div>\r\n

    Some researchers express this idea of customer value not as a difference but as a ratio of these two factors. [footnote]M. Christopher, \u201cFrom Brand Value to Customer Value,\u201d Journal of Marketing Practice: Applied Marketing Science<\/em> 2, no. 1 (1996): 55[\/footnote]<\/span> Either way, it needs to be understood that customers do not evaluate these factors in isolation. They evaluate them with respect to their expectations and the competition.<\/p>\r\n

    Firms that provide greater customer value relative to their competitors should expect to see higher revenues and superior returns. Robert Buzzell and Bradley Gale, reporting on one finding in the Profit Impact through Marketing Strategy study, a massive research project involving 2,800 businesses, showed that firms with superior customer value outperform their competitors on ROI and market share gains.[footnote]Robert D. Buzzell and Bradley T. Gale, The PIMS Principles\u2014Linking Strategy to Performance<\/em> (New York: Free Press, 1987), 106.[\/footnote]<\/span><\/p>\r\n

    Given this importance, it is critical to understand what makes up the perceived benefits and the perceived costs in the eyes of the consumer. These critical issues have produced a considerable body of research. Some of the major themes in customer value are evolving, and there is no universal consensus or agreement on all aspects of defining these two components. First, there are approaches that provide richly detailed and academically flavored definitions; others provide simpler and more practical definitions. These latter definitions tend to be ones that are closer to the aforementioned equation approach, where customers evaluate the benefits they gain from the purchase versus what it costs them to purchase.<\/p>\r\n

    However, one is still left with the issue of identifying the specific components of these benefits and costs. In looking at the benefits portion of the value equation, most researchers find that customer needs define the benefits component of value. But there still is no consensus as to what specific needs should be considered. Park, Jaworski, and McGinnis (1986) specified three broad types of needs of consumers that determine or impact value provided five types of value[footnote]C. Whan Park, Bernard J. Jaworski, and Deborah J. MacInnis, \u201cStrategic Brand Concept Image Management,\u201d Journal of Marketing<\/em> 50 (1986): 135.[\/footnote]<\/span>[footnote]Seth, Newman, and Gross (1991) Jagdish N. Seth, Bruce I. Newman, and Barbara L. Gross, Consumption Values and Market Choice: Theory and Applications<\/em> (Cincinnati, OH: Southwest Publishing, 1991), 77<\/span>[\/footnote]; <\/span>as did Woodall (2003), although he did not identify the same five values.[footnote]Tony Woodall, \u201cConceptualising \u2018Value for the Customer\u2019: An Attributional, Structural and Dispositional Analysis,\u201d Academy of Marketing Science Review<\/em> 2003, no. 12 (2003), accessed October 7, 2011, www.amsreview.org\/articles\/woodall12-2003.pdf<\/a>[\/footnote] <\/span><\/p>\r\n

    To add to the confusion, Heard (1993\u201394)<\/span>[footnote]Ed Heard, \u201cWalking the Talk of Customers Value,\u201d National Productivity Review<\/em> 11 (1993\u201394): 21.<\/span> [\/footnote]identified three factors, while Ulaga (2003)[footnote]Wolfgang Ulaga, \u201cCapturing Value Creation in Business Relationships: A Customer Perspective,\u201d Industrial Marketing Management<\/em> 32, no. 8 (2003): 677.[\/footnote]<\/span> specified eight categories of value; and Gentile, Spiller, and Noci (2007) mentioned six components of value.[footnote]Chiara Gentile, Nicola Spiller, and Giuliana Noci, \u201cHow to Sustain the Customer Experience: An Overview of Experience Components That Co-Create Value with the Customer,\u201d European Management Journal<\/em> 25, no. 5 (2007): 395[\/footnote]<\/span> Smith and Colgate (2007) attempted to place the discussion of customer value in a pragmatic context that might aid practitioners. They identified four types of values and five sources of value. Their purpose was to provide \u201ca foundation for measuring or assessing value creation strategies.\u201d[footnote]J. Brock Smith and Mark Colgate, \u201cCustomer Value Creation: A Practical Framework,\u201d Journal of Marketing Theory and Practice<\/em> 15, no. 1 (2007): 7.[\/footnote]<\/span> In some of these works, the components or dimensions of value singularly consider the benefits side of the equation, while others incorporate cost dimensions as part of value.<\/p>\r\n

    From the standpoint of small businesses, what sense can be made of all this confusion? First, the components of the benefits portion of customer value need to be identified in a way that has significance for small businesses. Second, cost components also need to be identified. Seth, Newman, and Gross\u2019s five types of value provide a solid basis for considering perceived benefits (see Figure 4.2 \"Five Types of Value\"<\/a>). Before specifying the five types of value, it is critical to emphasize that a business should not intend to compete on only one type of value. It must consider the mix of values that it will offer its customers. (In discussing these five values, it is important to provide the reader with examples. Most of our examples will relate to small business, but in some cases, good examples will have to be drawn from larger firms because they are better known.)<\/p>\r\n\r\n

    \r\n

    Figure 4.2<\/span> Five Types of Value<\/h3>\r\n\"image\"\r\n\r\n<\/div>\r\n

    The five types of value are as follows:<\/p>\r\n\r\n

      \r\n \t
    1. [pb_glossary id=\"678\"]Functional value[\/pb_glossary]<\/strong><\/em><\/a><\/span> relates to the product\u2019s or the service\u2019s ability to perform its utilitarian purpose. Woodruff (1997) identified that functional value can have several dimensions.[footnote]Robert B. Woodruff, \u201cCustomer Value: The Next Source of Competitive Advantage, Journal of the Academy of Marketing Science<\/em> 25, no. 2 (1997): 139[\/footnote]<\/span> One dimension would be performance related. This relates to characteristics that would have some degree of measurability, such as appropriate performance, speed of service, quality, or reliability. A car may be judged on its miles per gallon or the time to go from zero to sixty miles per hour. These concepts can also be seen when evaluating a garage that is performing auto repairs. Customers have an expectation that the repairs will be done correctly, that the car will not have to be brought back for additional work on the same problem, and that the repairs will be done in a reasonable amount of time. Another dimension of functional value might consider the extent to which the product or the service has the correct features or characteristics. In considering the purchase of a laptop computer, customers may compare different models on the basis of weight, battery lifetime, or speed. The notion of features or characteristics can be, at times, quite broad. Features might include aesthetics or an innovation component. Some restaurants will be judged on their ambiance; others may be judged on the creativity of their cuisine. Another dimension of functional value may be related to the final outcomes produced by a business. A hospital might be evaluated by its number of successes in carrying out a particular surgical procedure.<\/li>\r\n \t
    2. [pb_glossary id=\"679\"]Social value[\/pb_glossary]<\/strong><\/em> <\/a><\/span><\/span> involves a sense of relationship with other groups by using images or symbols. This may appear to be a rather abstract concept, but it is used by many businesses in many ways. Boutique clothing stores often try to convey a chic or trendy environment so that customers feel that they are on the cutting edge of fashion. Rolex watches try to convey the sense that their owners are members of an economic elite. Restaurants may alter their menus and decorations to reflect a particular ethnic cuisine. Some businesses may wish to be identified with particular causes. Local businesses may support local Little League teams. They may promote fundraising for a particular charity that they support. A business, such as Ben & Jerry\u2019s Ice Cream, may emphasize a commitment to the environment or sustainability.<\/li>\r\n \t
    3. [pb_glossary id=\"680\"]Emotional value[\/pb_glossary]<\/strong><\/em> <\/a><\/span>is derived from the ability to evoke an emotional or an affective response. This can cover a wide range of emotional responses. Insurance companies and security alarm businesses are able to tap into both fear and the need for security to provide value. Some theme parks emphasize the excitement that customers will experience with a range of rides. A restaurant may seek to create a romantic environment for diners. This might entail the presence of music or candlelight. Some businesses try to remind customers of a particular emotional state. Food companies and restaurants may wish to stimulate childhood memories or the comfort associated with a home-cooked meal. H\u00e4agen-Dazs is currently producing a line of all-natural ice cream with a limited number of natural flavors. It is designed to appeal to consumers\u2019 sense of nostalgia.[footnote]\u201cMaturalism,\u201d Trendwatching.com<\/em>, accessed June 1, 2012, http:\/\/trendwatching.com\/trends\/maturialism\/<\/a>.[\/footnote]<\/span><\/li>\r\n \t
    4. [pb_glossary id=\"681\"]Epistemic value[\/pb_glossary]<\/strong><\/em> <\/a><\/span><\/span> is generated by a sense of novelty or simple fun, which can be derived by inducing curiosity or a desire to learn more about a product or a service. Stew Leonard\u2019s began in the 1920s as a small dairy in Norwalk, Connecticut. Today, it is a $300 million per year enterprise of consisting of four grocery stores. It has been discussed in major management textbooks. These accomplishments are due to the desire to turn grocery shopping into a \u201cfun\u201d experience. Stew Leonard\u2019s uses a petting zoo, animatronic figures, and costumed characters to create a unique shopping environment. They use a different form of layout from other grocery stores. Customers are required to follow a fixed path that takes them through the entire store. Thus customers are exposed to all items in the store. In 1992, they were awarded a Guinness Book world record for generating more sales per square foot than any food store in the United States. [footnote]\u201cCompany Story,\u201d Stew Leonards<\/em>, accessed October 7, 2011, www.stewleonards.com\/html\/about.cfm<\/a>[\/footnote] <\/span>Another example of a business that employs epistemic value is Rosetta Stone, a company that sells language-learning software. Rosetta Stone emphasizes the ease of learning and the importance of acquiring fluency in another language through its innovative approach.<\/li>\r\n \t
    5. \r\n

      [pb_glossary id=\"682\"]Conditional value[\/pb_glossary]<\/a><\/strong><\/em><\/span> is derived from a particular context or a sociocultural setting. Many businesses learn to draw on shared traditions, such as holidays. For the vast majority of Americans, Thanksgiving means eating turkey with the family. Supermarkets and grocery stores recognize this and increase their inventory of turkeys and other foods associated with this period of the year. Holidays become a basis for many retail businesses to tap into conditional value.<\/p>\r\n

      Another way businesses may think about conditional value is to introduce a focus on emphasizing or creating a sociocultural context. Business may want to introduce a \u201ctribal\u201d element into their customer base, by using efforts that cause customers to view themselves as a member of a special group. Apple Computer does this quite well. Many owners of Apple computers view themselves as a special breed set apart from other computer users. This sense of special identity helps Apple in the sale of its other electronic consumer products. They reinforce this notion in the design and setup of Apple stores. Harley-Davidson does not just sell motorcycles; it sells a lifestyle. Harley-Davidson also has a lucrative side business selling accessories and apparel. The company supports owner groups around the world. All of this reinforces, among its customers, a sense of shared identity.<\/p>\r\n

      It should be readily seen that these five sources of value benefits are not rigorously distinct from each other. A notion of aesthetics might be applied, in different ways, across several of these value benefits. It also should be obvious that no business should plan to compete on the basis of only one source of value benefits. Likewise, it may be impossible for many businesses, particularly start-ups, to attempt to use all five dimensions. Each business, after identifying its customer base, must determine its own mix of these value benefits.<\/p>\r\n

      As previously pointed out, the notion of perceived customer value has two components\u2014perceived value benefits and perceived value costs. When examining the cost component, customers need to recognize that it is more than just the cost of purchasing a product or a service. Perceived cost should also be seen having multiple dimensions (see Figure 4.3 \"Components of Customer Value\"<\/a>).<\/p>\r\n<\/li>\r\n<\/ol>\r\n

      \r\n

      Figure 4.3<\/span> Components of Customer Value<\/h3>\r\n\"image\"\r\n\r\n<\/div>\r\n

      Perceived costs can be seen as being monetary, time, and psychic. The [pb_glossary id=\"683\"]monetary component[\/pb_glossary]<\/strong><\/em><\/a><\/span> of perceived costs should, in turn, be broken down into its constituent elements. Obviously, the first component is the purchase price of the product or the service. Many would mistakenly think that this is the only element to be considered as part of the cost component. They fail to consider several other cost components that are quite often of equal\u2014if not greater\u2014importance to customers. Many customers will consider the operating cost of a product or a service. A television cable company may promote an introductory offer with a very low price for the cable box and its installation. Most customers will consider the monthly fees for cable service rather than just looking at the installation cost. They often use service costs when evaluating the value proposition. Customers have discovered that there are high costs associated with servicing a product. If there are service costs, particularly if they are hidden costs, then customers will find significantly less value from that product or service. Two other costs also need to be considered. Switching cost is associated with moving from one provider to another. In some parts of the country, the cost of heating one\u2019s home with propane gas might be significantly less than using home heating oil on an annualized basis. However, this switch from heating oil to propane would require the homeowner to install a new type of furnace. That cost might deter the homeowner from moving to the cheaper form of energy. Opportunity cost involves selecting among alternative purchases. A customer may be looking at an expensive piece of jewelry that he wishes to buy for his wife. If he buys the jewelry, he may have to forgo the purchase of a new television. The jewelry would then be the opportunity cost for the television; likewise, the television would be the opportunity cost for the piece of jewelry. When considering the cost component of the value equation, business people should view each cost as part of an integrated package to be set forth before customers. More and more car dealerships are trying to win customers by not only lowering the sticker price but also offering low-cost or free maintenance during a significant portion of the lifetime of the vehicle.<\/p>\r\n

      These monetary components are what we most often think of when we discuss the term cost<\/em>, and, of course, they will influence the decision of customers; however, the <\/a><\/span>[pb_glossary id=\"1265\"]time component<\/a><\/span><\/strong>[\/pb_glossary] is also vital to the decision-making process. Customers may have to expend time acquiring information about the nature of the product or the service or make comparisons between competing products and services. Time must be expended to acquire the product or the service. This notion of time would be associated with learning where the product or the service could be purchased. It would include time spent traveling to the location where the item would be purchased or the time it takes to have the item delivered to the customer. One also must consider the time that might be required to learn how to use the product or the service. Any product or service with a steep learning curve might deter customers from purchasing it. Firms can provide additional value by reducing the time component. They could simplify access to the product or the service. They may offer a wide number of locations. Easy-to-understand instructions or simplicity in operations may reduce the amount of time that is required to learn how to properly use the product or the service.<\/p>\r\n

      The [pb_glossary id=\"684\"]psychic component[\/pb_glossary]<\/strong><\/em> <\/a><\/span><\/span> of cost can be associated with those factors that might induce stress on the customer. There can be stress associated with finding or evaluating products and services. In addition, products or services that are difficult to use or require a long time to learn how to use properly can cause stress on customers. Campbell\u2019s soup introduced a meal product called Souper Combos, which consisted of a sandwich and a cup of soup. At face value, one would think that this would be a successful product. Unfortunately, there were problems with the demands that this product placed on the customer in terms of preparing the meal. The frozen soup took twice as long to microwave as anticipated, and the consumer had to repeatedly insert and remove both the soup and the sandwich from the microwave.[footnote]Calvin L. Hodock, Why Smart Companies Do Dumb Things<\/em> (Amherst, NY: Prometheus Books, 2007), 65.[\/footnote]<\/span><\/p>\r\n

      In summary, business owners need to constantly consider how they can enhance the benefits component while reducing the cost components of the value equation. Table 4.1 \"Components of Perceived Benefit and Perceived Cost\"<\/a> summarizes the subcomponents of perceived value, the types of firms that emphasize those components, and the activities that might be necessary to either enhance benefits or reduce costs.<\/p>\r\n\r\n

      \r\n

      Table 4.1<\/span> Components of Perceived Benefit and Perceived Cost<\/h3>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
      Component<\/th>\r\nAspects<\/th>\r\nActivities to Deliver<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
      Components of Perceived Benefit<\/strong><\/td>\r\n<\/tr>\r\n
      Functional<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Measurable quality<\/li>\r\n \t
      • Performance<\/li>\r\n \t
      • Reliability<\/li>\r\n \t
      • Support network<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Quality assurance in product and services<\/li>\r\n \t
      • Superior product and process design<\/li>\r\n \t
      • Selection of correct attributes<\/li>\r\n \t
      • Ability to improve product and operations<\/li>\r\n \t
      • Management of value chain<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Social<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Builds identification with social, ethnic, or class group<\/li>\r\n \t
      • Emphasize lifestyle<\/li>\r\n \t
      • Development of interaction among people<\/li>\r\n \t
      • Build bonds within groups<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Market research correctly identifies customer base(s)<\/li>\r\n \t
      • Ability to build social community among customers<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Emotional<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Assist in making one feel good about themselves<\/li>\r\n \t
      • Attachment to product or service<\/li>\r\n \t
      • Produces a change in how others see the user<\/li>\r\n \t
      • Trustworthiness<\/li>\r\n \t
      • Profound customer experience<\/li>\r\n \t
      • Aesthetics<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Market research understands psychological dimensions of customer base(s)<\/li>\r\n \t
      • Marketing content emphasizes desired psychological dimensions<\/li>\r\n \t
      • Reliability between marketing message and delivery<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Epistemic<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Novelty<\/li>\r\n \t
      • Fun<\/li>\r\n \t
      • Evoke interest in product or service<\/li>\r\n \t
      • Interest in learning<\/li>\r\n \t
      • Produces a willing suspension of disbelief<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Creative personnel<\/li>\r\n \t
      • Creative product or process development<\/li>\r\n \t
      • Commitment to innovation<\/li>\r\n \t
      • Willingness to experiment<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Conditional<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Produces meaning in a specific context<\/li>\r\n \t
      • Tied to particular events<\/li>\r\n \t
      • Tied to holidays<\/li>\r\n \t
      • Demonstrates social responsibility<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Flexibility (can alter physical facilities or marketing message depending on context)<\/li>\r\n \t
      • Management commitment to responsible action<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Components of Perceived Cost<\/strong><\/td>\r\n<\/tr>\r\n
      Monetary<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Reduce purchase price<\/li>\r\n \t
      • Reduce operating costs<\/li>\r\n \t
      • Reduce maintenance costs<\/li>\r\n \t
      • Reduce opportunity costs<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Superior design<\/li>\r\n \t
      • Operational efficiency<\/li>\r\n \t
      • Cost containment<\/li>\r\n \t
      • Quality control and assurance<\/li>\r\n \t
      • Easy acquisition<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Time<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Reduce time to search for product or service<\/li>\r\n \t
      • Reduce time to purchase<\/li>\r\n \t
      • Reduced learning curve<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n
        \r\n \t
      • Broad distribution channels<\/li>\r\n \t
      • Web-based purchasing option<\/li>\r\n \t
      • Web-based information<\/li>\r\n \t
      • Superior design<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Psychic<\/strong><\/em><\/td>\r\n\r\n
        \r\n \t
      • Simplified use<\/li>\r\n \t
      • \u201cComfortable\u201d feeling with regard to product or service use<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		\r\n