Researchers at GWC Valves have been investing in understanding consumer behaviour based on the value proposition of a company. GWC Valves is an internationally renown valve manufacturer that has always gone with the following value proposition: More for More.
This is just one of 5 different value proportions that companies can position themselves as in consumer’s minds. Depending on the chosen value proposition, companies have a desired image they want to instil about themselves in their customer’s minds.
- More for more: this position implies to consumers that they are paying a high price for the highest quality and performance product on the market. The reason GWC Valves has gone with this positioning is because the company customizes every valve for their clients which naturally comes at a higher price. Often times, customization simply requires more attention and therefore more labour.
- More for the same: one of the most used value propositions is that companies advertise that they are offering a superior quality than competitors but for the exact same price that they are offering it at. It communities that the company is thriving for a higher quality performance product for their customers but that it is at a reasonable price. The disadvantage is that consumers can think that it is a scam if it seems too good to be true.
- The Same for Less: Similar to the previous value proposition, companies can offer the same products but for less money. This is also frequently used by companies to remain competitive on the shelf. That is more or less all it takes for companies to win over a service. Ultimately, if the same product is being offered and they have the same image and features, the price is often the determining factor on whether or not the product is bought.
- Less for Much Less: There is always a market for people that only want to buy the bear minimum because that’s all they believe they need. At the same time, if they do not see a need for the “extras” in their mind, why pay more? This option is suitable for companies with either many or large segments or companies that have few and specific niche segments. If it is not necessary, GWC Valves does not see the purpose in offering this value proposition. More recently, the mindset of less is dying out as Generation X and Millennials gain more and more purchasing power.
- More for Less: This positioning is favourable to customers because they are paying less for more but is not sustainable in the long run. Long-term it will be hard to stay competitive with this vale proposition because there is always a standard to live up to on the “for-less” part. For this reason, GWC Valves encourages this value proposition but on a toned down scale.
GWC Valves encourages companies to chose a value proposition to stay competitive on a qualitative and quantitative scale so it doesn’t limit them financially in the long-run.