The concept of value is being used more and more in marketing today. The proof can be seen from the definition of marketing given by experts. When we talk about the definition of marketing, the most widely used standard is the definition of the American Marketing Association (AMA) which is headquartered in Chicago, United States of America.
With free translation, this definition states that marketing is an activity, a set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large. The objective of marketing is to create, deliver and exchange value with consumers.
According to Scanchez-Fernandea and Iniesta-Bonillo (2006), the concept of different customer values can be grouped into four categories, namely: (1) value as low price, (2) value as anything what consumers want in a product (value as whatever the consumer wants in a product), (3) value as the quality that consumers get in return for the price paid (value as the quality the consumer gets for the price she/he pays) and (4) value as what the consumer gets for what they have given (value as what the consumer gets for what he/she gives). In short, there are two dimensions related to value, namely what the consumer gets (GET) and what the consumer sacrifices (GIVE). The first category that associates value with a low price certainly focuses on GIVE. The second category which regards value as "whatever the consumer wants in a product (value as whatever the consumer wants in a product)" focuses on GET. The third category which considers value as "the quality that the consumer gets in return for the price paid (value as the quality the consumer gets for the price she/he pays)", focuses on the comparison between GET and GIVE. The fourth category, which considers value as "what the consumer gets for what they give (value as what the consumer gets for what he/she gives)", also compares GET versus GIVE, but is more complete than the third category.
SOURCES OF CUSTOMER VALUE
So far, four categories of understanding customer value have been explained. Then it has also been discussed that the four categories of understanding are based on different focuses, whether on GET, GIVE or GET and GIVE at the same time. The GET dimension can be associated with functional/utilitarian, hedonic/experiential as well as symbolic/expressive values. The GIVE dimension can be associated with the cost/sacrifice value. The next question is where do these four types of values come from?
In general, experts do not specify the source of customer value because there seems to be an agreement among them that the source of value is a product or brand. In fact, according to Smith and Colgate (2007), there are five sources of value, namely information, product, interaction, environment, and transfer of ownership.
Information is generated through advertising, public relations, and brand management (such as packaging, labels, and instructions). The information allows consumers to know functional, hedonic, symbolic, and cost or sacrifice values so that they can make decisions more quickly.
Products directly generate functional, hedonic, symbolic, and cost or sacrifice values, so that decisions can be made more quickly. Therefore, Vargo and Lusch (2008) state that products are value vehicles.
The interaction between consumers and company employees as well as with systems created by companies (eg ATMs) can provide functional, hedonic, symbolic, and cost or sacrifice values. For example, the value of lectures at the Open University is influenced by the quality of interaction between students and employees directly or through the mail, telephone, and online systems provided.
The environment is also a source of value. Environmental management as a source of value can be found in retail, restaurants, banks, shopping centers, and others. Environmental settings are related to the outside environment (location, parking lot, and front view) as well as the internal environment, such as setting music, lighting, aroma, decoration, room layout, and merchandising. This setting is made because the environment can generate the four types of values that have been described.
Finally, the transfer of ownership is the source of the four types of value mentioned. These sources relate to accounting (such as payments and invoicing), delivery (including packing, picking, shipping, and tracking), and transfer of ownership (such as contracts, copyright agreements, and naming or branding). These sources can provide functional or utilitarian value, such as timely delivery, hedonic or experiential value (such as satisfaction with the fulfillment process), expressive or symbolic value (such as the feeling of pride in having food delivered from the McDonald's menu to your home) and cost or sacrifice value ( such as calm because the delivery of goods can be monitored).
