The term customer value has many meanings, but two dominate – value for customer and value for the firm (Woodall, 2003). The creation of value for customers is a critical job for marketers, especially when developing new products and services or starting new businesses (Smith & Colgate, 2014). From a customer’s perspective, customer value is what they benefit from Fitbit Alta relative to what they have to sacrifice in order to obtain it (Zeithaml, 1988). Smith & Colgate break customer value down into a number of small parts shown in figure 2. The values that are in blue are the benefits that customer may get from buying a certain product. The column that named “Cost/ Sacrifice Value” is the costs that customer need to give up in order to receive the set of …show more content…
These value are called functional or instrumental value; it gives accurate measurements, appropriate performance, and appropriate outcome to customers. This is the main utility of the product that we seek. It this case customer that want to have a wristband device that can record their daily steps and track their sleeps may consider Fitbit Alta. Fitbit Alta have a 3-axis accelerometer that can track the steps, distance and calories burned in minutes (Charara,