MinuteGrocer: Estimating Economic Value to the Customer

by: Aradhna Krishna

Publication Date: May 2, 2023
Length: 8 pages
Product ID#: 1-640-753

Core Disciplines: Marketing/Sales

Partner Collection:

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Teaching Note

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This case about Economic Value to the Customer (EVC) enables students to deeply analyze the positive and negative differentiation value of a product or service, and how distinct demographic segments can have disparate EVC. Additionally, it makes students aware that consumers can feel differently about various types of (equivalent) payment, e.g., $1 spent on service fees, tips, or on monthly fees for a food delivery service. Finally, the case encourages students to think about how to communicate the various aspects of value that a product/service provides.

Teaching Objectives

After reading and discussing the material, students should:

  • Define Economic Value to the Customer (EVC).
  • Describe Reference Value.
  • Recognize positive and negative Differentiation Value.
  • Identify how different demographic segments can have different EVC.
  • Explain how consumers can feel differently about various types of (equivalent) payment.
  • Understand why certain Differentiation Value may matter more to a consumer psychologically.
  • Formulate a plan for communicating EVC to consumers.