Small Business Management in the 21st Century Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    285

There are several perceived value propositions challenging business processes and requires complete understanding of the customers’ perception of benefits and costs. Market segmentation might assist to understand various segments of the market though the challenge is getting the real customers. Robert should consider customer value offered by Frank’s All-American BarBeQue through function, social, emotional, epistemic, and conditional values. Functional values relates to the ability of the product to perform its utilitarian role which have different dimensions. The main dimension is performance related. Social value involves having a sense of relationship with the other groups through the image which might appear an abstract concept though used by many businesses. Through emotional value, Robert should evoke affective response while generating the epistemic value through simple fun that is derivable through curiosity induction to learn much about the product. Conditional value needs to be based on socio-cultural setting. To achieve the required customer value, the perceived benefits need to be higher than the perceived cost. Robert needs to perceive the costs based on time, psychic, and monetary. The monetary components need to be further broken down into various elements including the product purchase price. Most customers often consider the cost of operation as they frequently use service cost while evaluating the cost of proposition. There is high cost involved in servicing the product; thus, if there are hidden costs, then the customers are likely to find less value from the products offered. In most cases, people associate monetary components with cost as the main factor influencing the decision of the customers; nonetheless, the time component is also important in the decision-making process.

References

Cadden, D., & Lueder, S. (2017). Small Business Management in the 21st Century. Retrieved August 18, 2017, from https://s3-us-west-2.amazonaws.com/oa2/docfiles/a0c66b42-f924-4d1e-9b55-4e67c9dfc140/a0c66b42-f924-4d1e-9b55-4e67c9dfc140.pdf