Customer Value Proposition of Asus Laptops: A Comparative Analysis

This report examines the customer value proposition of Asus laptops, a multinational computer hardware and consumer electronics company, in comparison to its competitor, Hewlett-Packard (HP). The analysis employs the Monroe and Holbrook models to assess customer perceived value. The Monroe model evaluates the benefits and sacrifices associated with purchasing a laptop, while the Holbrook model explores the intrinsic and extrinsic values. The report identifies Asus's existing value proposition, highlighting its strengths and weaknesses. It then benchmarks Asus against HP, a leading brand in the laptop segment. Finally, the report recommends a new value proposition for Asus, along with an implementation plan to enhance its market position and customer satisfaction. The report's findings are based on an in-depth analysis of the laptop market, customer needs, and competitive strategies.

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

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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.

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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

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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

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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

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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.

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The third is the quality that is provided by the consumers. The brand names are huge
which creates a certainty that the product is reliable and of good quality. Fourthly, buying a
branded laptop provides social approval that in turns increase the self-esteem of the
consumers.
There are sacrifices that a consumer has to have when buying a laptop. The first
sacrifice is monetary; the consumers have to spend a huge amount on buying a laptop and
installing some of the softwares that are not previously loaded on the laptop. Secondly, the
consumer has to put enormous efforts when buying a laptop in research to buy the best laptop
for their need, the consumer also has to continuously find a power source when the battery
dies (Leroi-Werelds 2015). Thirdly, there are many health implications of using a laptop for a
lengthy period of time; it damages the eyes and the mental growth of a person. Fourthly, there
is a social humiliation attached when a consumer buys a cheap product or a product that is
not seemed good enough in the society. Lastly, the sacrifice that the customers have to face is
the lack of opportunity of buying a variety of products.
Holbrook Model
In Holbrook model, the customer value is an experience that is interactive, relativistic
and based on preference. The interactive aspect is revealed when there is an interaction
between a consumer and an object. It is relativistic as the interaction depends on the situation
and it is related to preference, as there is a choice to be made. All these combine to make an
experience and relates to the personal feelings and thoughts of a person.
Extrinsic Intrinsic
Self-Oriented Active Efficiency
 Range of
brands to
Fun
 The ability to
work

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choose from
 Available
Online and
Offline
 Easy to use
and mobility
for the
anywhere
and
everywhere
 Use it for
recreational
activities like
watching
movies
Reactive Excellence
 Brand names
that
guarantee
reliability
 High quality
hardware and
software
Aesthetics
 Designs of
the laptops
 Attractive
sleek look
Other-Oriented Active Status
 Self-esteem
increases
Ethics
 Helping the
environment
by using less
power
Reactive Esteem
 Social
inclusivity
important for
Spirituality
 Need to buy
brand names
 Feeling of

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increasing
self-esteem
accomplishm
ent when one
finds what
one is
looking for
Table 2: Holbrook’s Model of Intrinsic and Extrinsic Customer Value (Holbrook, 1994 p.44)
The extrinsic and intrinsic analysis explains why the customer buys a certain product
and rejects the other. The first extrinsic value is the efficiency that the product will provide
after the purchase. The output should be equal to or more than the input that the customer is
providing (Leroi-Werelds 2015). The second extrinsic value is excellence where the person
wants the best product that they can have. The third is status which is a part of being accepted
socially and having a high regard because of branded products. Lastly it is esteem that
increases when one is accepted socially and has a high status in the society.
The first intrinsic value is fun, where the consumer is looking for some ways of
recreation from using the product. Using a laptop will provide the customer to watch movies,
listen to songs and play videos (Tippmann, Sharkey Scott and Parker 2017). The second
value is aesthetics where the customer is looking for an aesthetically pleasing product that has
excellent design and performance. The third value is ethics, the consumer wants to be morally
responsible as a citizen of the world and buy products that would help in achieve the same.
The last goal is spirituality, which is linked to a person wanting to buy big brand names and
rejoicing when finding what the person was looking for. It is a type of self-fulfilment
(Gallarza, et. al 2016).

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Comparison of Existing Value Proposition of Asus with HP
The findings from both the Holbrook and the Monroe model analysis will be used to
determine the value proposition Asus Laptops.
Asus’s Value Proposition
Market Mission and Value Statement Competitive Positioning
Marketing Assets Competitive
Differentiation
Customer Value
Strategy and
Positioning
Mission: The mission is to provide
innovative IT solution that would
enable people and the business to reach
the potential that they can achieve.
Values: Accomplishing the
fundamentals that is afore moving
forward, that has resulted in becoming
a backbone that can be depended on.
Customer Business Strategy:
Customers receive the best solution in
the minimal cost. They have long-term
relations with the customers.
 Strong presence throughout the
world.
 Owns the world’s best and
finest quality of motherboard.
 World’s first company to have
extendable screen on the laptop.
 Recognisable brand across the
world
 Easy availability of the product
 Simplifying customer lives by
providing simple and cost
effective solutions
 Investing in innovations in both
hardware and software
technologies
 Follows a conventional model
of distribution with online
stores

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Figure 1: Asus’s Value Proposition (Piercy, 2009 p.311)
The value proposition of Asus is based on the functional value and also has a hint of
focus on economic value as it save time of the people and uses less power. The price of the
laptop is an important factor as it helps in determining whether the customer will buy the
product or not, which is clearly shown in the Monroe model. The functional value can be
perceived from the innovations and the new products that the brand is releasing to improve
the performance of the consumers (Yang and Peterson 2004). It refers to the less power
usage, the operating of the laptop and the type of hardware and software used by the
company. The company also has a competitive positioning, as Asus is one of the only brands
that has come up with an extra screen on the surface of the laptop, the company keeps on
innovating new products and designs that would create a competitive edge over the other
companies (Gallarza, et al 2016). Asus has always been regarded as a brand that is known for
its hardware that is the best in the market, like the motherboard. It provides the customer
value satisfaction in terms of status and esteem. Lastly, Asus has a competitive advantage
over the other brands because of the high quality hardware that is used in the product, the
company also provides a warranty and guarantee services as well as great customer response
in regards to customer satisfaction and has a sound after sales service (Doyle 2000). The
market assets of the company includes the easy availability of the product, throughout the
world, brand recognition that ascertains good quality of product. It aims in simplifying the
lives of the consumers by providing them with solutions that is cost effective. It has been
recognised as being the best company for motherboard and hardware for a laptop. Asus has a
strong competitive differentiation and has a unique selling proposition that provides it an
edge in the market place (Yang and Peterson 2004). It offers convenience to the consumers
with its variety of stores present offline and a strong online presence. It is the first company
to provide a laptop that has an extendable screen with superior display and performance.

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Asus as a company continues to embrace the innovation and implement new
technologies in its product. They have a strong research and development team that is
continuously trying to achieve the best possible outcome and come up with new products that
are superior in design and performance (Payne, Frow and Eggert 2017). Their mission
resonates with this philosophy of providing the best solution in the least cost.
There are many flaws in the value proposition of the company and that is the lack of
customer database. They have a small number of target group and the company now must
expand its target base to have more consumers that would buy the product of the company.
The company lacked innovation, yet now is one of the best brands in the world that is coming
up with different technologies and innovations in their product.
The change in business environment changes the customer needs and wants and the
values that they seek from the product. The desire for cost effective solutions, products, and
services that are value for money have increased. The change in the business environment
and the ability of HP to adapt to it has made it into a competition and a threat for Asus.
Hewlett Packard’s Value Proposition
Hewlett Packard was established in the year 1939, by David Packard and Bill
Hewlett. The headquarters of the company is in California, United States of America. The
main vision of the company is to provide technology to the world that makes life better and
simple for all (About HP, 2020). HP has continued to grow through each passing year by
reinventing and creating new ideas and innovations that benefit the people as a whole. The
customer value proposition for the brand is one of the best in the technology department. The
company is the leading brand in the laptop segment because of its innovations and designs
that help the company in keeping up with the demand and providing easier ways of living for
the consumers.