Value quantification

This chapter explores the concept and practice of value quantification, emphasizing its crucial role in effectively communicating product offerings in industrial markets. Rather than relying solely on product characteristics, successful sales strategies involve translating unique selling points into quantifiable customer-specific economic value. The chapter synthesizes existing marketing and pricing literature, presenting a comprehensive model that categorizes benefits and sacrifices into quantitative and qualitative dimensions relevant to both B2B and B2C contexts. The author delineates a systematic approach for quantifying customer value, highlighting practical methodologies such as economic value analysis and conjoint analysis. Furthermore, the chapter underscores the managerial implications of value quantification, including enhanced pricing strategies, improved negotiation positions, reduced discounting, and performance-based pricing opportunities. Through detailed frameworks and real-world examples, the chapter provides actionable insights for effectively leveraging quantified value to gain competitive advantage and drive customer purchasing decisions.