Perceived Customer Value Using Marketing Models

Running head: PERCEIVED CUSTOMER VALUE USING MARKETING MODELS
PERCEIVED CUSTOMER VALUE USING MARKETING MODELS
Name of the Student
Name of the University
Author note

PERCEIVED CUSTOMER VALUE USING MARKETING MODELS1
Executive Summary
In this paper, the customer value proposition of Asus is addressed and is compared with the
leading brand HP. The customer value proposition is analysed by using the Monroe and
Holbrook models. The Monroe model includes benefits and the sacrifices that a consumer has
to make in order to buy a laptop; in the Holbrook model the intrinsic and extrinsic value of
the company and the product is discussed. The paper also discusses and recommends a new
value proposition for the Asus in order to thrive in the market.

PERCEIVED CUSTOMER VALUE USING MARKETING MODELS2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Customer Perceived Value of Laptops...................................................................................4
Monroe Model....................................................................................................................4
Holbrook Model.................................................................................................................6
Comparison of Existing Value Proposition of Asus with HP................................................9
Asus’s Value Proposition...................................................................................................9
Hewlett Packard’s Value Proposition..............................................................................11
Benchmark...........................................................................................................................13
Asus’s New Value Proposition and Implementation...........................................................13
Conclusion................................................................................................................................17
Appendix..................................................................................................................................19
References................................................................................................................................20

PERCEIVED CUSTOMER VALUE USING MARKETING MODELS3
Introduction
In the growing economy, the main problem that is faced by the companies is to have a
higher customer value than its competitors. Customer value proposition is adding value to the
product or services to increase the sales (Tippmann, Scott and Parker 2017). It is targeted
towards customers specifically and no other stakeholders like employees, suppliers or the
partners. It is the core value in offering a competitive advantage to the company against its
competitions. It is the total of all the benefits that a supplier promises to the customers in
return or exchange of money. Customer value proposition is identifying the benefits of the
product and service and using it as an advantage to sell more products and services
(Asgarpour et. al 2014). It starts with identifying the needs of the customer, the value the
competitor is providing and the strength of one’s own company. After forming a target group,
the company has to select the offerings and the attributes that will meet the needs of the
targeted group. The offerings that are selected make the base of the customer value
proposition. There are five aspects to customer value that are quality of the product, the price
of the product, the emotional value, social value and the brand image. These five aspects
form the fundamental base on which the companies form their Customer Value Proposition.
A customer value proposition is always compared between companies to understand what the
customer perceives about both the companies (Carvalho 2015).
In this report, Asus’s customer value proposition is measured using the Monroe and
Holbrook models. It is a Taiwan based company that was set up in the year 1989. It is a
multinational computer hardware and consumer electronic organisation. The mission of the
company is to produce products that combine the life of the present and the future. It is the
leading company in motherboard and gaming. Asus was also recognised as the World’s Most
Admired Company by the Fortune magazine in 2015 and 2016 (About Asus, 2020). The

PERCEIVED CUSTOMER VALUE USING MARKETING MODELS4
customer value proposition of Asus is compared with leading brand in the laptop segment,
Hewlett-Packard. HP is a multinational IT company that has both hardware and software
related products and services. It was founded in 1939 by William Hewlett and Dave Packard.
The headquarters are in Palo Alto, California (About HP, 2020).
Discussion
Customer Perceived Value of Laptops
Monroe Model
Benefits of Buying a Laptop Sacrifices of Buying a Laptop
Convenience:
 Finished Product
 Mobility
 Lower Power Consumption
 Increased Productivity
Monetary:
 High Cost of purchase
 Cost of installation and purchase of
software for the laptop
Monetary:
 Warranty Periods
 Guarantee of Product
 Free Installation of some software
Efforts:
 Extensive research in finding the
best laptop
 Always finding a power source
Quality:
 Huge brand name, thus ensuring
good quality of product
 Increase in technology certifying
sound quality
Health:
 Excessive huge of laptop damages
the eyes
 Hampers the mental growth because
of prolonged use.
Social:
 Social approval related to huge
Social:
 The humiliation that is attached with

PERCEIVED CUSTOMER VALUE USING MARKETING MODELS5
brand name
 Increase in self-esteem
buying a cheaper product
 The lowering of self-esteem when
there is no social acceptance
Opportunity:
 Lack of opportunity to buy a range
of products
Table 1: Benefits and Sacrifices of Buying a Laptop (Monroe, 1991)
In today’s time, the demand for convenience is increasing. Customers are preferring
products and services that are convenient. Convenience is measured through the time that is
saved by the consumers in doing a particular task (Dodds, Monroe and Grewal 1991). The
first benefit laptops provide is convenience. Firstly, it is a finished product, thus there is no
need to assemble it for using. This saves the time of the people, as they do not have to
assemble the product and wait to do their job. Secondly, it provides mobility that means that
the consumers can work from wherever they wish, it is a machine that weighs not more than
2 kilograms thus is easier to carry and work on (Kumar and Reinartz 2016). Thirdly, it
reduces the power consumption as it can be used for a long time after charging. Lastly, it
increases the productivity of the consumer as they can work anytime from anywhere without
any interruption.
The second benefit of buying a laptop is the monetary value. When buying a laptop
the companies provide warranty and guarantee for the product that increases the life of the
product. The extended warranty and guarantee periods also provides trust in the product for
the consumers (Huber and Herrmann 2015). Buying a laptop comes with some previously
installed applications, which enables the consumers to save some money on buying software
applications for the laptop.