Consideration of Customer Value in Frank's All-American BarBeQue

Management 0
SMALL BUSINESS MANAGEMENT
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Management 1
Discuss how Robert should explicitly consider the customer value currently
offered by Frank’s All-American BarBeQue. In your discussion comment on
Newman and Gross’s five types of value and the perceived cost.
Customer value is the difference between a product/service’s benefits received and its cost paid
by the customer. It means that the value of money is received in the form of gratification from
the use of the product/service bought. In this case, the customer value refers to the quality of
food offered in economic rates.

Management 2
Robert has a degree in marketing and he saw the chance to take the restaurant to new and greater
heights without touching its motto, i.e. providing food at fair rates at a comfortable place. The
ideas Robert has, are very innovative and would definitely help Frank in expanding the business
(Luigi and Mihai, 2011). People love Frank’s All-American BarBeQue sauce and no other
restaurant offers it, it can be leveraged to open other outlets as well. Also, the brand exists from
the 1980s and has established itself firmly. It has gained popularity and fame in the form of
awards and mentions in local newspapers.
The value proposition is another important aspect. Since the restaurant is well known and it is
successful as compared to the other restaurants in town. It indicates that people are happy with
the customer value, they are quite satisfied with the quality of food being delivered along with its
price, therefore, the focus should be on the things like price, comfort, and quality of food (Kotler,
2017).
In addition, Frank and Robert should also focus on brand building and operational activities. It
would help in the expansion of the restaurant and the restaurant will be one of its kind. The web,
as well as branding, are two important factors of marketing in any business. Robert understood
the needs of the people and the love they had for Frank’s All-American BarBeQue.
Newman and Gross’s theory of Consumption value has stated five types of value and the
perceived cost- functional value, conditional value, social value, emotional value, and epistemic
value. The functional value is more about utility and in this case the taste of food. It is generally
considered as the first motivator of consumer choice (Estrella-Ramón et al., 2013). The second
value is conditional value, it is all based on condition, if this case was to be taken, then the