Creating Product Value Research Articles

Consumer acquisition cost as an efficiency indicator of the company’s digital strategy

The aim of the article. The goal of the article is to analyze the current state and trends in the development of the e-commerce market in conditions of growing digitalization and to consider the consumer acquisition cost indicator as an efficiency indicator of the company's digital strategy and to optimize engagement channels based on the obtained results. Analysis results. At first, the pandemic was a turning point in the field of e-commerce, provoking a surge in the online shopping popularity and the need for businesses to modernize their operations to meet online requirements. The second impetus was the online shopping intensification by Ukraine population after the full-scale invasion of russia, as the need for basic purchases increased due to relocation and movement to safer regions, and almost everything could be purchased online. According to statistics, about 71% of retailers believe that digital transformation is an integral part of e-commerce technology. The rapid development and digitization of humanity has caused changes in the consumers purchasing behavior and the traditional marketing tools and methodologies transformation into new, more effective ones. Further projected growth of the e-commerce market will require businesses to build an effective digital strategy to effectively interact with consumers and meet their needs, creating product value and increasing brand awareness. Since there have been changes in traditional marketing tools in the digital direction, the methodology for evaluating the effectiveness of digital marketing strategies has also changed. Therefore, it is advisable to consider the indicator of the customers acquisition cost as an indicator of the company's digital strategy effectiveness for further channels of attraction optimization and other parameters of promotion and attracting customers online. In today's unstable conditions, it is important to keep customers and return those with whom you have already had experience of cooperation. It is advisable to stimulate repeat purchases with the help of relevant e-mails, notifications through messengers and loyalty programs. The main reasons for abandoned carts by customers are negative reviews, lack of or complicated return policies, and slow site or application performance. Conclusions and directions for further research. Businesses should focus on effective promotion channels that have low CAC and attract many new customers by increasing their budget. When choosing such a main promotion channel, it is necessary to take into account not only the number of transitions, but also the number of conversions on the company's website. It is worth abandoning channels that show a mediocre result, because a large number of channels does not guarantee a wider reach of customers, on the contrary, such actions increase the cost of attracting a customer and are ineffective

Product Value Creation Training Through Value Proposition Canvas (VPC) with the South Jakarta Small Medium Enterprise (SME) Community

Product value creation training is a community service activity carried out by the Faculty of Economics and Business, Paramadina University. The aim of this program is to increase knowledge and practice of creating product value for MSME actors. The training participants were the South Jakarta MSME Community. The themes presented were digital entrepreneurship, the urgency of product value, and product value mapping with the Value Proposition Canvas. The number of participants was 38 people. The evaluation results showed that the participants were satisfied with this training program. The three aspects assessed are the committee, materials, and the implementation of the concept of product value. The training method is carried out face-to-face by inviting small-medium enterprise community actors in the South Jakarta area. The evaluation questionnaire was distributed online using the Google Form. The results of the evaluation assessment show that the program was successfully implemented with material in accordance with business needs. Training participants have a strong desire to apply the Value Proposition Canvas (VPC) concept to products or services. These This awareness is to be able to meet consumer expectations. The follow-up program will be carried out with the theme of packaging and product branding. These two themes are a continuation of the community service program in the coming year.

FORMATION OF THE BUSINESS PROCESS MANAGEMENT MARKET UNDER THE INFLUENCE OF DIGITALIZATION

Topicality. Globalization processes and changing priorities under the influence of digitalization affect all spheres of the economy and entrepreneurial activity. Entrepreneurial activity consists in the formation of business processes, which also require fundamental changes under the influence of the phenomena outlined above. The formation of business processes requires a clear management of them, since it is the processes that create the potential for increasing productivity and reducing production costs.The management of business processes requires their adaptation to rapid changes in technologies, the emergence and development of artificial intelligence, the automation of work processes, and the platformization of all business processes.Aim and tasks. The purpose of this article is to study the management of business processes under the influence of digitalization and the formation of the business process market. This goal made it possible to form the following tasks: to analyze the basis of types of business processes; determine the impact of digitalization on specific types of business processes; to investigate the formation of the business process management market; consider the growth dynamics of the global business process management market; form the segmentation of the business process management market according to various characteristics; determine the further directions of the formation of the business process management market.Research results. The article defines the following types of business processes: main (main), service (auxiliary), management (managing), development processes. The impact of digitization on the main types of business processes was analyzed, namely, the following are subject to digitalization: the main business processes are where the processes of creating product value are established; servicing business processes, where additional value creation processes occur; managers (managers) allow management of information and personnel; development processes - creation of additional value (value). The author considered the following stages of digitization of business processes under the influence of general digital transformations in the world: digitization of data and information; change of business processes; saving resources; implementation of separate operations, tasks, sub-processes; digital transformation.The paper examines the signs of the formation of the business process management market, namely: freedom of choice, limited role of the state, level of maturity, set of economic relations, presence of subjects and objects, different forms of ownership, free competition, integration of participants, price mechanisms, system flexibility, etc. The segmentation of the business process management market was formed according to the following characteristics: by components; by deployment; by decisions; by industries of final consumers; by geographyConclusion. Scientific articles define further directions for the formation of the business process management market, which can be attributed to: software (influence of cyber-physical systems) business process management turns into the platformization of new generation business processes; business process management partners are developing a new class of ready-made dynamic applications for interoperable work using a new generation platform; integration of business process management with artificial intelligence and robotics technologies, the need to automate all business processes to reduce errors and improve information technologies based on the ever-changing needs of end users.

The “indie” premium: how independent firms create product value across cultures

PurposeAlthough firm growth through the acquisition of independent players is at a record high, market reports reveal a parallel increase in independent firms that enjoy noticeable consumer support across industries and threaten MNC-owned brands in several countries. Despite this evident contrast, no research has investigated how independent firms stack up against their non-independent counterparts from a consumer perspective. This study examines this standoff and proposes that independent firms outperform their non-independent contenders in fostering perceptions of product craftmanship and warmth in specific product categories and cultures.Design/methodology/approachThree experimental studies were conducted across five countries (Study 1: N = 360; USA and China – Study 2: N = 487; UK and India – Study 3: N = 323; Italy). Data were analysed using experimental techniques (Analysis of Variance) and conditional process analyses (Moderated Mediation) using PROCESS.FindingsThe findings suggest that (1) firm independence fosters perceptions of product craftmanship and warmth in individualistic cultures, (2) consumers view products sold by independent firms as warmer and more authentic than products sold by non-independent firms in hedonic but not in utilitarian product categories, (3) the positive effects of firm independence on product craftmanship and warmth are neutralized for vertically collectivist cultures (India) and reversed in horizontally collectivist cultures (China), (4) loss of firm independence leads to higher drops in perceived craftmanship and product preference when it is caused by a takeover from a foreign multinational (compared to a domestic corporation).Originality/valueThis research provides a first account of how perceptions of firm independence drive assessments of product craftmanship and authenticity, elicit feelings of warmth and build product preference. The findings inform decisions of multinational corporations regarding (1) how to communicate the acquisition of independent firms in local markets, (2) how to balance an international brand portfolio in culturally diverging markets and different product industries, (3) how to optimize brand architecture through the relative exposure of the corporate brand image vis-à-vis the image of standalone brands owned by the corporation and (4) offer smaller independent players an alternative positioning strategy to differentiate from global competitors enjoying the resources or support of bigger corporations.

Mechanical Engineering Product Value Design Applying the Value Engineering Method

Today mechanical engineering is one of the most dynamically developing industries. The products of this industry are becoming more and more complex, requiring the continuous introduction of new high technologies into the production process. In addition, the change in the preferences of consumers of mechanical engineering products associated with an increase in the degree of automation and robotization of their production processes leads to the need to apply more flexible product design approaches. These approaches should allow the manufacturer to respond quickly to changing customer needs. Thus, machine-building enterprises need to provide not only the best price-quality ratio, but also to offer a unique set of product functions - a concept that satisfies all the needs of target consumers. In other words, the ability to create product value based on the individual needs of customers is a competitive advantage for a company in the struggle for market share. The application of Value Engineering Method is able to solve these problems.

Model of Value Proposition: Customer Interview and Development Process for Startup Business Product

This study aims to determine how the value proposition can be used as a tool to create product value for consumers. For that created a value proposition of the model using the business model canvas in particular by applying the value proposition associated with a canvas model of customer development. So then with communication and interview on potential consumers can be created products that are expected to be useful for solving the problems faced by consumers. And the product is also expected advantage product value for consumers and companies. This simple research using descriptive method, by conducting direct interviews on prospective customers (customer interview) who will use the products offered as a product of the startup business.

Sales Rock! Constructing product value: An anthropomorphizing classroom project

The Sales Rock! project adds to the growing literature on the importance of experiential learning in higher education. The authors utilize one-sample t tests (M > 3.0) of undergraduate students (N = 42) along four processes of learning under the transformative learning scale. The transformative learning theory includes four processes of learning: (a) elaboration of existing point of view, (b) establishing new points of view, (c) transform our point of view, and (d) ethnocentric habit of mind creating awareness and reflecting on generalized bias. This innovation promotes creativity to provide next-generation learners with original problem-solving opportunities, creating product value and digital communication skills.

A Study on the Correlations among Product Design, Statistics Education, and Purchase Intention – A Case of Toy Industry

Being affected by the rapid change in internal and external environments in past years, the fiercer competition has resulted in the declination of toy industry. For the sustained-yield management, toy manufacturers have been searching for strategies. In the consumer-oriented era, an enterprise has to precede statistics education of toy designers so that the market survey could accurately analyze consumer needs to establish differential products for creating product value and meeting consumer needs. The supervisors, employees, and customers of Traxxas are the major research subjects for the questionnaire survey in this study. Total 300 copies of questionnaire are distributed and 236 valid copies are retrieved, with the retrieval rate 79%. The research results reveal significantly positive correlations between 1.product design and purchase intention, 2.statistics education and product design, and 3.statistics education and purchase intention. According to the results, suggestions are proposed, expecting to assist domestic toy manufacturers in the future development of product design for the sustained-yield management.

Effects of Message Strategy and Need for Cognition (NFC) on Consumer Attitudes: A Case of Corporate Social Responsibility (CSR) Advertising

Corporate social responsibility (CSR) advertising can differentiate brands and create product value, and an appropriate messaging strategy can help corporations launch persuasive CSR advertisements. This study employed a 2 × 2 mixed experimental design to operate two independent variables—message strategy of CSR advertising (CSR-informational advertising vs. CSR-transformational advertising) and the level of need for cognition (high-NFC vs. low-NFC)—in order to examine the effect of these variables on consumers’ attitudes toward advertising and brands. Three primary conclusions were reached: 1) the message strategy of CSR advertising influenced consumers’ attitudes toward advertising and brands; 2) NFC levels influenced consumers’ attitudes toward advertising and brands; and 3) individuals with high NFC exhibited more positive attitudes toward advertisements and brands in the CSR-informational advertising compared with those in the CSR-transformational advertising. Overall, using advertising to promote CSR activities can strengthen corporate image, promote consumer behavior, and consolidate consumers’ brand loyalty; however, corporations must actively consider how to appropriately design CSR advertising content.

Co-creative Value Manufacturing: a methodology for treating interaction and value amongst artefacts and humans in society

This paper presents a new concept of co-creative value manufacturing, considering interaction among artefacts and humans in society. In response to recent social changes such as globalization of business, diversification of culture, individualization of lifestyle, environmental problems and short product lifecycles, manufacturers are confronted with difficulties in terms of creating product value. It has been observed that products with high functionality do not necessarily create value. The reason can be considered to be that value is created through interaction within an environment where artefacts with technology and humans who use products have been mutually interacting. Therefore, it is important to ascertain the mechanism of how value is constituted through interactions in a society. To treat such an issue, this paper first explains key concepts of emergent synthesis, co-creative decision-making, and value creation models as a basis for co-creative manufacturing. Then an approach integrating game theory, experimental economics and multi-agent simulation is proposed. Finally, this paper presents a research example using the approach, focusing on electric vehicle development.

Collaborating for New Product Development: Selecting the Partner with Maximum Potential to Create Value

The partner selection process in the formation stages of collaborative new product development (NPD) is a neglected topic. The present study investigated the partner selection processes to ascertain the potential of creating competitively advantageous products through collaboration. The goal was to develop a process theory of partner selection for collaborative NPD alliances using a theory development approach. The literatures on NPD, interfirm knowledge transfer and generation, and interorganizational relationships were tapped. These literatures motivated the approach and the research questions. Parallel with the analysis of the literature, a series of case study interviews were conducted with managers currently in collaborative dyads. Managers' inputs were used (1) to guide the theory development process and (2) to validate the relevance of the literature‐based assertions. The method of narrative analysis for building theory from case studies was adopted: Multiple indicators were collapsed into single constructs, and recurring sequences or divergences were analyzed. This resulted in the unveiling of phases in the partner selection process. The study's findings suggest that technological alignment of the partners triggered the partner‐evaluation process. This phase was followed, in order, by the strategic alignment and relational alignment phases. These later phases were as important as the initial phase in ensuring the transfer and integration of critical know‐how and in creating product value through collaboration. In addition to clarifying the definition of codevelopment alliances, this study reveals a comprehensive theoretical model of the technological, strategic, and relational aspects of partner selection in codevelopment alliances, as well as the order in which these aspects are practiced.

製品価値の創出に向けた設計教育の課題と展開

製品価値の創出に向けた設計教育の課題と展開