User as a source of the innovation based product value

Abstract

Purpose: Development of the customer perceived value expression with the product use functions optimization model aiming particularly the case of new technology based innovations. Design/methodology/approach: Firstly, the role of customer is presented with particular attention payed to the client role in value creation process in the case of innovation based product. Then the perceived customer value and customer value definition are described. Those formulas are used in consequence as the base for expanded theoretic value concept, which is integrating the impact of used product brand and user functions mix. Finally, the introduced notion is developed in matrix form and briefly discussed. Findings: Extended formula of innovation based new product perceived customer value is presented in the form of the matrix notation, the possible application in the company innovation based product portfolio formation process is discussed. Research limitations/implications: Presented approach to the customer perceived value is based on the application of technical debt concept as the measure of analyzed product innovativeness, which is sensitive data and stay difficult to collect, particularly in case of new technologies. Practical implications: Proposed extended customer perceived value formula can be used as practical tool of new technology based innovative product, allowing to assess its market value in comparison to the existing company product cost structure. Makes possible to confront the customer product appreciation to those coming from the company interior analyzes. Hence its matrix form can serve as optimization model taking under consideration the possible market potential, impact of used brand and design and product use functions mix according to their technology life cycle. Social implications: Developed concept can reinforce the client role in commercialization process, particularly in case technology innovation. Also its use can be an interesting tool of prosumption development, making it more unambiguous and proactive. Originality/value: Presented extended formula of customer perceived vale can be applied as an interesting concept of research about nature the value of new technologies based innovation product also as base for practical managerial tool of optimization the new product mix during the commercialization process. Keywords: perceived innovativeness product value, new technology, technical debt. Category of the paper: Conceptual research paper.