Understanding Buyers Value Essay Example | Topics and Well Written Essays - 750 words

Understanding Buyers Value - Essay ExampleUnderstanding Buyers ValueMichael Porter (1991. pp103) presented an internal nourish chain of an organization from conceptualization to delivery of products to customers and argued that Buyer Value is created when a firm lowers its purchasers cost or enhances buyers performance. From the roots perspective, the buyers value is the positive perception of the buyer herself/himself that the organization has earned amidst many factors that influence the perception. The factors may be behaviour with the buyer, communications carried out with the buyer, clarity & transparency of information provided to the buyer, understanding of buyers need, personalization of the solution against buyers needs, subtraction levels provided to the buyer, value added services provided to the buyer. and after sales services & product upgradation services provided to the buyer whenever requested. It may be possible that the buyer has carried out competitive set ana lysis before the bargaining and hence the seller has to either justify higher price by demonstrating tangible value additions or simply retell lower than competition to sell the products. Hence, Porters argument about lowering of buyers cost and enhancing buyers performance again pass waters applicable if the buyer appreciates these facts from her/his perspective. The firms perspective buttocks at the most be to control the factors (value chain management) that can achieve the positive perceptions of the buyer what the buyer finally perceives is the actual value achieved by the firm. The author strongly agrees about the hypothesis of reduced sacrifice undertaken by the buyer because it strongly influences the perception of the buyer regarding the firm.Discussion PointsElmaghraby and Keskinocak (2003. pp1288-1289) presented the mechanism of dynamic pricing to get the best benefits out of increased customer demands and reduced inventories. In such cases, the firms tend to increas e their prices which definitely tend to increase the sacrifice level of customers to come the prices. The author wishes to discuss if such dynamic pricing strategies in the attempt to get the best out of favorable conditions for the firm cause long edge damage to the value perceptions of the customers which may backfire especially when the demands eases. Slater and Narver (1998. pp1000-1005) presented that long term competitive advantages of companies can be improved by carrying out innovations to a greater extent towards market orientation than customer orientation. This is primarily because customers are grossly ignorant about their needs. But on the contrary it is true that customers perceive value on their own based on their social influences and past experiences. The author wishes to discuss how companies should be able to control the perceptions of customers to achieve positive buyer value if this theory about market orientation should be trustedConclusionThe author presente d own perspective about buyers value stating that this largely depends upon the factors that drive positive perceptions in customers mind. The best that an organization can do is to apply effective efforts to achieve this positive perceptio