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Copyright © 2007 Pearson Education, Inc.

Slide 2-6

Value Proposition

Defines how a company’s product or service fulfills the needs of customers

Questions to ask:

Why will customers choose to do business with your firm instead of another?

What will your firm provide that others do not or cannot?

Examples of successful value propositions:

Personalization/customization

Reduction of product search costs

Reduction of price discover costs

Facilitation of transactions by managing product delivery

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