The Effect of Customer Proposition on the Performance of SMEs. The Case Study is Y and K Company Limited
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To ascertain the element of customer value proposition practice in Nigerian SME
- To ascertain the readiness of customer value proposition practice in Nigerian SME
- To ascertain the effect of customer proposition on the performance of SMEs
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Customer Value Proposition
There is no magic formula to optimizing your conversions. It all comes down to identifying and meeting the needs of your customers. And while offering a good product or service is essential, it would still lead you nowhere if you fail to communicate to your audience why they should do business with you.
Your customer value proposition (CVP) and unique selling proposition (USP) play a crucial role in showcasing the distinctive perks that come with purchasing your product or service to make them more appealing.
Both the CVP and the USP lie at the very core of value marketing. But because the two concepts fall under the umbrella of what you want to tell your audience to make clear your brand is worth their while, they are often mistakenly used conversely.
It is important to note that the CVP and the USP serve different purposes. The former outlines the promise of value you intend to deliver, and the latter defines your position in the market in contrast with your competitors.
This article aims to demystify the fundamental differences between these two ideas and provide you with the knowledge you need to design a value proposition that will appeal to your target audience and boost your sales.
The Importance of Value Propositions
Because of the immense importance of customer value propositions, companies have to be very explicit in targeting the right segment. Especially those value propositions, representing the “points-of-difference” have to make sure to address the right customer segment, as they can be of relative importance to specific customer segments and thus have to be considered in the respective market context (Chandler, Lusch, 2015). Furthermore this “coincides with an emphasis on customer orientation, or customer perspective, that has become fundamental to the role that value propositions play in customer relationship management and marketing” (Chandler, Lusch, 2015, p.7).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the effect of customer proposition on the performance of SMEs .The case study is Y and K company limited forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
TEST OF HYPOTHESIS
H0: there are no elements of customer value proposition practice in Nigerian SME
H1: there are no elements of customer value proposition practice in Nigerian SME
H0: there is no effect of customer proposition on the performance of SMEs
H2: there is effect of customer proposition on the performance of SMEs
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain effect of customer proposition on the performance of SMEs. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of effect of customer proposition on the performance of SMEs
Summary
This study was on effect of customer proposition on the performance of SMEs. Three objectives were raised which included: To ascertain the element of customer value proposition practice in Nigerian SME, to ascertain the readiness of customer value proposition practice in Nigerian SME and to ascertain the effect of customer proposition on the performance of SMEs. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Y and K company limited. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
It can be concluded that the awareness for the paradigm shift is especially important in the online environment, as it substantially differs from traditional offline business in terms of customer needs and customer relationships and thus in the way companies have to pose their value proposition. When going through radical organizational change, companies initially tend to lack awareness for the paradigm shift and the corresponding importance of adjusting their value proposition towards a more customer-oriented approach. This initial lack of awareness results in a rather passive adaption approach to the value proposition, with a remaining focus on the optimization of internal processes. Positive influences of the external environment and managerial decisions considerably foster the organizational learning process, which further increases the companies’ awareness for the immense importance of value propositions in customer relationships. The increased awareness results in an increased focus on the value proposition and thus in the proactive realignment of the internal processes in accordance to the adjusted value proposition. In conclusion these proceedings emphasize the important impact of organizational learning on value proposition adjustments over time.
Recommendation
SMEs need to put effort in enhancing their brand-oriented strategy as brand orientation affects their business performance
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