Sources of differentiation
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Tangible sources of differentiating a companies customer value proposition are:
- Product/service quality
- Functionality
- Durability
- Reliability
- Ease of installation
- Degree of product/service customization
- The more a product can be adapted to specific needs, the more benefits it creates for an individual user
- Convenience
- The energy, effort and time that buyers have to spend during purchasing is an important factor.
- Speed of delivery
- The ability to quickly deliver is an important customer benefit
- Product range
- A broad and deep selection provides an important source of differentiation. Also remind The Long Tail.
Intangible sources:
- Brand
- The brand refers to the perceived traits that consumers associate with the company that is selling a product or a service.
- Reputation
- The perceived past performance of a company is a major factor influence reputation. Customers value reputation as they believe it will reduce risk.
See also: Consumption chain
Part of M8-S2 - Reading - Strategies for E-Business - Chapter 5 - Strategy options
