A novel framework for modeling value for the customer, an essay on negotiation

• Author(s): Nicola, Susana ; Ferreira, Eduarda Pinto ; Ferreira, João José Pinto
• Date: 2012
• Persistent ID: http://hdl.handle.net/10400.22/1235
• Origin: Repositório Científico do Instituto Politécnico do Porto
• Subject(s): Customer perceived value; Modeling value
• Document Type: Article
• Language: English

Description

This paper proposes a novel framework for modelling the Value for the Customer, the so-called the Conceptual Model for Decomposing Value for the Customer (CMDVC). This conceptual model is first validated through an exploratory case study where the authors validate both the proposed constructs of the model and their relations. In a second step the authors propose a mathematical formulation for the CMDVC as well as a computational method. This has enabled the final quantitative discussion of how the CMDVC can be applied and used in the enterprise environment, and the final validation by the people in the enterprise. Along this research, we were able to confirm that the results of this novel quantitative approach to model the Value for the Customer is consistent with the company's empirical experience. The paper further discusses the merits and limitations of this approach, proposing that the model is likely to bring value to support not only the contract preparation at an Ex-Ante Negotiation Phase, as demonstrated, but also along the actual negotiation process, as finally confirmed by an enterprise testimonial.