IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-20093-9_6.html
   My bibliography  Save this book chapter

Control Value-to-Customer

In: Beating Inflation

Author

Listed:
  • Hermann Simon

    (Simon-Kucher & Partners)

  • Adam Echter

    (Simon-Kucher & Partners)

Abstract

The relationship between inflation and value-to-customer is crucial. Perceived value-to-customer is the driver of willingness-to-pay and pricing power. Therefore, it makes sense to increase value-to-customer in order to mitigate resistance to price increases. The key question is whether and how such increases can be achieved quickly enough under inflationary conditions. By far the most important instrument for increasing value is innovation. However, the results are disappointing. Seventy percent of the managers say that innovations do not meet expectations in terms of increasing willingness-to-pay. Since it’s all about perception, effective value communication forms another important tool. Additional services and extended guarantees can have a positive influence on willingness-to-pay and expand the scope for price increases. All these measures take time to implement and to take effect, and they produce additional costs. It is therefore necessary to examine very carefully which measures are actually suitable under inflationary conditions. Caution is advised.

Suggested Citation

  • Hermann Simon & Adam Echter, 2023. "Control Value-to-Customer," Springer Books, in: Beating Inflation, chapter 6, pages 47-53, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-20093-9_6
    DOI: 10.1007/978-3-031-20093-9_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-031-20093-9_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.