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Customer value creation: The case of Beats Electronics

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case study
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  1. Customer value creation: the case of beats electronics
  2. Using theory to explain the nature of customer value creation
  3. Application and reasoning

Value creation is one of the core aspects of any firm as it is linked to shareholder value. It is important to care about the manner in which customers place value in the brand. Customer perceptions of value are often unclear which creates a wide opportunity for companies to tap into. This subsequently enables a firm to achieve growth that is sustainable in terms of revenues as well as profits. As Jimmy Iovine and Dr. Dre found creating consumer value was an essential strategy in ensuring that their brand was more successful than their competitors.

[...] Both Iovine and Dr.Dre had to convince the market that purchasing the headphones was beneficial in the long run as it would make the music listening experience better by providing better audio quality (Helm, 2014). Application and Reasoning Customer value creation was seen as the most appropriate marketing concept as it enabled Beats Electronics to interact directly with the customer by providing a product that would appeal to them. Changing consumer trends are what provided the firm with the chance to bring the product to the market (Helm, 2014). [...]

[...] This paper will begin by discussing the consumer value creation in analyzing Beats Electronics. It will then examine why Beats Electronics used this particular concept and the extent to which it has been forced to accommodate changing trends in consumer trends and the resources that were deployed in marketing this concept and finally the analysis will consider how this concept enabled the firm to enhance on its business performance. Using theory to explain the nature of Customer Value Creation Increasingly firms are placing more emphasis on retaining their customers and often it takes a significant amount of effort, time as well as money in both attracting a new customer. [...]

[...] Service quality in this instance is made up of two distinct parts which is the expected and perceived service. The perceived quality is made of two aspects: one is technical which is what the customer gets and customers often look to this aspect since it provides an overview of how the firm's products can provide a technical solution to the problem (Gronroos & Voima, 2011). The other aspect is functional which strives to examine the extent to which the customer provides a service to the customer. [...]