benefit driverselements of a firm's operations which individually and collectively create BENEFIT ADVANTAGES for consumers who buy the firm's product. The ability to offer a product which is ‘perceived’ by customers to offer superior value to them is an important consideration where PRODUCT DIFFERENTIATION is the key basis of the firm's COMPETITIVE ADVANTAGE over rival suppliers.
There are four main categories of benefit drivers:
- the physical attributes of the product, including QUALITY, DESIGN, features, performance in use etc;
- the provision of back-up services and products by the firm or its dealers, including product pre-sale advice and demonstrations and various AFTER-SALES SERVICES (GUARANTEES/WARRANTIES, repair and maintenance, replacement parts) etc;
- sale/delivery characteristics, including the availability of the product, the provision of credit facilities, the speed and promptness of delivery, etc.
- consumers' perceptions and expectations of the product's performance, including the reputation of the supplying firm, BRAND awareness, the ‘image’ of the brand and the psychological satisfaction gained from the brand built by ADVERTISING and other promotional means. See VALUE CREATED MODEL, RESOURCE BASED THEORY OF THE FIRM. Compare COST DRIVERS.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
benefit driverselements of a firm's operations that individually and collectively create ‘benefits’ for consumers who buy the firm's product, e.g. quality, design, accessories, performance in use, guarantees and warranties. The ability to offer a product that is ‘perceived’ by customers to offer superior value to them is an important consideration where PRODUCT DIFFERENTIATION is the key basis of the firm's COMPETITIVE ADVANTAGE over rival suppliers. See VALUE-CREATED MODEL.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005