2015Unpublished venueRequires access

Value-in-use analysis and consequences for value propositions in the agricultural sector

M.A. Gebbink

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Abstract

Many businesses nowadays shift from a Goods-Dominant logic to a Service-Dominant logic, in which the value-in-use of goods is considered. Value-in-use implies customers will only experience value of products when used for some purpose in practice. The agricultural sector, traditionally being goods dominant, is due to developments more and more shifting to the service dominant logic. Therefore, it is important to develop further the customer value concept hand in hand with the value-in-use concept for the agriculture sector, because it can give new insights for business opportunities and strengthening value propositions. Accordingly, companies operating based on the Service-Dominant logic constantly strive to improve their value propositions. Therefore, understanding value-in-use and consequences for value propositions is an important field of study both theoretical and practical. Overall, based on the insights of end users, five value-in-use categories are derived based on distinct ways of the customer experiences of value; These categories are: core process, real users, system related, company related and law related. Important to companies is to adjust their value propositions accordingly assuming that most value proposition emphasize product features rather than value-in-use characteristics. In addition, the existence of potential value-in-use emerged.

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Many businesses nowadays shift from a Goods-Dominant logic to a Service-Dominant logic, in which the value-in-use of goods is considered. Value-in-use implies customers will only experience value of products when used for some purpose in practice. The agricultural sector, traditionally being goods dominant, is due to developments more and more shifting to the service dominant logic. Therefore, it is important to develop further the customer value concept hand in hand with the value-in-use concept for the agriculture sector, because it can give new insights for business opportunities and strengthening value propositions. Accordingly, companies operating based on the Service-Dominant logic constantly strive to improve their value propositions. Therefore, understanding value-in-use and consequences for value propositions is an important field of study both theoretical and practical. Overall, based on the insights of end users, five value-in-use categories are derived based on distinct ways of the customer experiences of value; These categories are: core process, real users, system related, company related and law related. Important to companies is to adjust their value propositions accordingly assuming that most value proposition emphasize product features rather than value-in-use characteristics. In addition, the existence of potential value-in-use emerged.

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Available abstract

Many businesses nowadays shift from a Goods-Dominant logic to a Service-Dominant logic, in which the value-in-use of goods is considered. Value-in-use implies customers will only experience value of products when used for some purpose in practice. The agricultural sector, traditionally being goods dominant, is due to developments more and more shifting to the service dominant logic. Therefore, it is important to develop further the customer value concept hand in hand with the value-in-use concept for the agriculture sector, because it can give new insights for business opportunities and strengthening value propositions. Accordingly, companies operating based on the Service-Dominant logic constantly strive to improve their value propositions. Therefore, understanding value-in-use and consequences for value propositions is an important field of study both theoretical and practical. Overall, based on the insights of end users, five value-in-use categories are derived based on distinct ways of the customer experiences of value; These categories are: core process, real users, system related, company related and law related. Important to companies is to adjust their value propositions accordingly assuming that most value proposition emphasize product features rather than value-in-use characteristics. In addition, the existence of potential value-in-use emerged.

Key concepts: Value proposition, Service-dominant logic, Value (mathematics), Business value, Use value, Value network, Product (mathematics), Service (business)

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