Question

Research the concept of "Value" in the B2B context. Note that we are not talking about "Values" which are moral and ethical orientations but value as in "Value Chain" or "Value-in-use" or, as the article under this weeks module, "Shared Value". Topics may include how value is created and how it is measured.

Answer 1

How value is created and how it is measured in B2B markets:

B2B markets differ from the B2C markets in terms of the needs of value. B2B customers are more interested in the value creation as it gives them an edge or success in their current business. These customers define value in the form of simplicity, convenience, and integration. The B2B customers consider the value on the basis of early response time, services, quality, price and results in a shorter period of time.

The value for B2B customers can be created by providing the products at a lower price, providing the service in terms of demonstration of products or enhanced products, negotiating with right people and selling the results over features. B2B customers rely on innovative products and its use to increase their revenue.

Value can be measured using traditional metrics like revenue, quality, productivity, and throughput. Apart from that, the value can be measured by analyzing whether actions are meeting the commitments done to the customers, and whether it matters to the customers or not.