Value Proposition to Customer Assignment
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Added on 2021-06-17
Value Proposition to Customer Assignment
Added on 2021-06-17
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Value Proposition to Customer
VALUE PROPOSITION1ContentsFirst Part:...............................................................................................................................................2American Express Card:....................................................................................................................2Customer perceived value of credit card............................................................................................2Woodruff Customer Value Hierarchy................................................................................................3Holbrook Consumer value model......................................................................................................4Second Part............................................................................................................................................6Compare and contrast between American Express and VISA...........................................................6Two Value Propositions of Credit Card Sector..................................................................................8Third Part.............................................................................................................................................10Existing value proposition...............................................................................................................10New Value Proposition:...................................................................................................................12Value Criteria:.................................................................................................................................13Implementation of New Proposition................................................................................................13References...........................................................................................................................................16
VALUE PROPOSITION2First Part:American Express Card:The American Express is a US based Multinational Company which deals in financial services. It was founded by Dow Jones in 1850. The main products company are charge card,traveler’s cheque and credit card. American Express is best known for its credit card. American Express card is also known as Amex card. The American Express deals in an electronic payment card which is issued and processed by American Express. Cards are available for individual, corporate consumers and small businesses in the US and all around the world (American Express, 2018)Customer perceived value of credit cardIn 2016, out of total dollar volume of credit cards transactions, the transaction of American Express Credit card was 22.9%. In December 2017 Company had 112.8 million card users which include 50 million card users in US, each card consist average yearly spending of $18,519 (American Express, 2018)
VALUE PROPOSITION3Woodruff Customer Value Hierarchy(Source: Phillips,2012)The basic idea of Woodruff customer value hierarchy is satisfying the need of customers. Before introducing any service and product in the market the company needs to decide the level of satisfaction, the said service and product are going to provide to the customers. Satisfying customer value is a key to Woodruff customer value hierarchy model. The Woodruff customer value hierarchy model includes three steps these are:1.Service/Product attributes: The fundamental of this level of hierarchy is how service or product going to satisfy the need of customers if they consume it. The bottom layer of woodruff customer value hierarchy also includes characteristics of theproduct or service which company is going to introduce in the market. It contains onlythose characteristics or attributes which are necessary for product or service to function. 2.Consequence layer: This level of woodruff customer value hierarchy includes expectations of customers from the service and product. The attributes are decided to
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