Solutions proposed in the marketplace come with a price that customers are willing to pay only when the perceived value aligns with the cost and effort of purchasing. When faced with multiple options, customers typically evaluate which one best matches their needs and constraints, seeking the optimal compromise. 
This is where value is assessed and determined. Evaluating and measuring value remains a complex task.
This chapter aims to clarify the concept of “Value” in its various dimensions and its application in marketing and sales. It strives to simplify this term, which holds multiple meanings in marketing. The definition of “Value” is closely tied to customer needs and expectations and exists even before a price is set. Since each customer—whether an individual, a company, or a group—is unique, the value they assign to a solution will also be unique at any given time.
This uniqueness makes the role of sales and marketing professionals particularly engaging, as understanding customer needs and preferences helps in determining which solution, whether from their own company or a competitor, best meets the customer’s requirements.
The concept of value is crucial to customer decision-making and central to solution design, pricing, and selling. The value attributed to a solution is highly variable and influenced by many factors. It can even fluctuate rapidly for a single customer over time. Various elements play a role in how customers evaluate the value of a solution. In addition to the features promoted by the company, such as performance, availability, or solution characteristics, customers often seek additional sources of information to understand factors like reliability or customer experience and satisfaction. Consequently, the more complex the product, the more attention will be given to these various factors.
Price is often perceived as a component in assessing value. A higher price can be associated with higher performance or quality, and if the solution is resold, it may retain a higher residual value.
However, purchase decisions for complex equipment or solutions often begin with a large spreadsheet or another comparison tool to evaluate solutions across many parameters. Despite this, customers frequently state that only two or, at most, three criteria were key in their choice. These key criteria are what any salesperson aims to identify early, in order to focus on them during their discussions with customers. The best salespeople guide their customers in identifying and emphasizing these key arguments in favor of the solution they propose.
Value is indeed a crucial component of a solution and is inherently subjective.
When offered a choice between solutions, customers generally evaluate various options and select the one that aligns most closely with their needs and expectations.
For marketing, this is where the “why” question becomes invaluable. It helps to understand, in the customer’s own words, the rationale behind their purchase decision.
Asking the “why” question allows to uncover the root of the decision-making process and how the purchase decision was shaped over time.
Asking the “why” question in marketing is powerful and often needs to be asked multiple times to reveal the true need or intention behind the purchase decision. 
If the initial response is a feature or product characteristic, it’s important to continue probing to understand, from the customer’s perspective, what the real or expected benefits are.
This iterative “why” questioning helps clarify the customer’s values.
The “why” question facilitates climbing the Value Ladder, which is essential in marketing. It translates features into benefits, which in turn, translate into customer needs, expectations, or values.
A specific aid on the Value Ladder is provided as a tool. Please refer to this tool to understand how it can be applied in your marketing and sales activities.
It’s also important to recognize that customers are usually more receptive to such discussions long before a purchase decision—during the early stages when they start identifying purchase criteria and expected value—or after the purchase, when reflecting on their decision rationale.
In between, customers may be less open to discussions, as companies are expected to present their own arguments.
The values perceived by customers can be identified through the Voice of the Customer at the time of the purchase decision.
A clear distinction must be made between “Value” and “Values.” A straightforward way to differentiate them is to consider “Values” as the highest level of the Value Ladder. These include concepts such as safety, ease of use, profitability for instance. When customers are asked “why” while moving up the Value Ladder, multiple “Values” might be mentioned as they respond to the benefits they seek. The term “Values” is used in the plural when referencing this ladder.
When comparing value and price, the goal is often to rank solutions based on criteria that identify the best option according to its perceived value relative to the price offered. This process is commonly referred to as the “price–value” comparison. In this approach, the “Value” axis represents the customer’s perceived benefits when comparing a solution to others. It is important to note that this is not the same as the “Values” represented in the benefits ladder.
As discussed in the decision chapter, the rationale for selecting between solutions can vary greatly among customers, due to different needs or evaluations of performance against their prioritized criteria. Some criteria can present major roadblocks, requiring salespersons to adjust their strategy. More details on this can be found in the decision chapter (see also scorecards and Pugh matrix).
In summary, “Value” and “Values” carry distinct meanings. “Values” are crucial when learning about customer segments. On the other hand, “Value” is key when measuring and comparing solutions for a single customer, and by extension, for customers within the same segment group. It is particularly important to compare “Value” for the same solution across different customer segments, which may lead to creating multiple solutions with different packaging and selling strategies to address various segments at varying price points.
Several key questions for marketing and sales need to be addressed to clarify the “perceived Value.” These questions impact not only the go-to-market strategy but also product development. They can be applied to both existing solutions from a company and its competitors, such as:
What communication strategies should be used at different stages of the customer purchase process—early when customers are seeking information, or later when they are close to making a decision?These questions and more are crucial in developing a deeper sensitivity to the problems that need resolution and underscore the importance of focusing on the “why”—which is far more crucial than merely addressing the “what” and the “how.”
Customers evaluate solution performance and capabilities based on their own needs and purchase criteria. Factors such as performance, ease of use, reputation, and ease of implementation will depend on each customer’s needs and past experiences. Customer segmentation—when targeted toward this objective—allows for the identification of customer segments that evaluate solutions in similar patterns.
The sales team must carefully evaluate what strategy should be considered based on the customer, their segment, and various other criteria. While customer segmentation does not provide an absolute answer, it is a key tool for targeting value selling. The sales team can leverage this knowledge to enhance their performance.
Segmentation does not provide a final answer but is crucial for identifying pricing tactics and offering guidance to sales teams on key points, such as effective sales arguments and discouraging customers from buying from competitors. Without consolidated efforts in segmentation and positioning, salespersons might misjudge the value, missing out on the benefits of a unified strategy. Leveraging knowledge from a sales team aligned with a continuously reviewed and optimized marketing strategy is essential.
Without segmentation and an effort to recognize customer segments, each salesperson becomes their own marketing individual, attempting to maximize sales tactics as if they were the entire marketing team. This situation can lead to frustration and errors, such as presenting the wrong product at the wrong price or sharing features that do not address the current customer’s needs.
Although each customer will evaluate their own needs and ultimately decide to buy a solution from one company or another, the role of salespersons is to understand the purchase scenario and how their solution’s value aligns with the customer’s needs and preferences. Segmentation is a key to deciphering customers, and solution selling is an approach in this area.
The attempt to quantify value often begins with measuring return on investment (ROI). However, does ROI represent the entire value for a company? For instance, should the skills required to operate the solution or suitability for long-term projects be included in the ROI calculation?
When comparing solutions, quantification is valid to determine which offers more value, but is calculated value the sole criterion for a final purchase decision? For example, a solution with the highest value may still fail to meet price criteria if there is a finite budget.
During the sales process, customers are interested in identifying the purchase criteria and the value they gain from selecting one solution over another. Understanding criteria (such as “Critical To Quality” from quality methods) and assessing the value provided by different solutions using comparison tools seems essential. However, the criteria used for evaluation, even with the best intentions, remain subjective.
While value can be assessed through comparison tools, decisions are still quite subjective. In large projects, decisions may be made by committees where each member can express their opinion and cast a vote.
Value can be quantified, but each group of customers will assess performance, benefits, return on investment, and other criteria based on their own needs and expectations. Consequently, quantification will involve a subjective approach, even within a decision committee. Therefore, value remains subjective, and a purchase decision must ultimately be made.
For complex solutions, notably in B2B contexts, options may be proposed, and customers will consider whether to acquire them or not. Customers evaluate the value of a solution with or without options, compare the values and acquisition costs of options across companies, and make their decision.
Companies might be tempted to assume that options have a certain value on their own and that this value can be estimated additively when combined with the core solution. However, there is no evidence that the value of the solution with options will be the sum of the solution’s value and the estimated value of each option. High-priced options can become detractors, and configurations with many included options are often proposed to reduce the overall price compared to adding the price of each option separately.
While the price for solutions and options is generally linear and additive, the perceived value of an option is primarily a function of customer needs and perception. Adding an option usually adds value, but not always. An option that is not useful to a customer can reduce the total perceived value. For instance, a portable computer with an optional graphics card that adds weight and reduces battery life might be evaluated as less valuable than the same computer without the option. The perceived value depends on the usage.
When comparing price and perceived value, which is crucial in marketing, the perceived value is essential. It can be assessed by customer segment or for individual customers, but it is usually not the sum of the values of the components. For this reason, companies develop extensive intelligence to group features into solutions that meet the needs of targeted segments appropriately.
By now, the difference between Values and Value should be quite clear. Values can be further described and structured similarly to the work done during segmentation. For a deeper understanding, read this enlightening discussion on values proposed by Bain, which presents a pyramid of possible values aligned with Abraham Maslow’s hierarchy of needs:
Bain’s Elements of Value: https://media.bain.com/elements-of-value/
Maslow’s Hierarchy of Needs: https://en.wikipedia.org/wiki/Abraham_Maslow
Interestingly, while value is quantifiable, there is no obligation to assign a monetary dimension to it. In fact, using a monetary dimension conflicts with the idea that value is not additive or linear and may blur the distinction between price and value, which is a major risk in comparing and addressing differences between solutions. With this in mind, read this insightful article by James C. Anderson and James A. Narus published in the Harvard Business Review:
Understanding What Customers Value: https://hbr.org/1998/11/business-marketing-understand-what-customers-value
The article offers many suggestions for measuring and quantifying perceived customer value, including the Field Value Assessment approach.
Beyond VOC, focus groups, and other methods aimed at identifying the full benefits of solutions from the customer’s perspective, you might also consider QFD (Quality Function Deployment) approaches. QFD helps articulate customer benefits from multiple external factors and combines them similarly to a scorecard, which can be problematic when trying to consider value as linear and additive.
For those interested in the connection between Value and Values, the “Value Proposition” serves as an excellent bridge. A salesperson uses the value proposition to demonstrate how the proposed solution delivers “Value” through features and capabilities that address the customer’s needs and align with their “Values.”
Value and Values carry different meanings, and both are crucial for effective marketing. Values represent what motivates customers in their needs and preferences when considering solutions. Perceived Value refers to the subjective evaluation by customers of how well a solution meets their needs, including factors such as acquisition price, running costs, and usage benefits.
These concepts are essential for companies when designing new solutions, creating value, and setting prices for different customer groups. Segmentation is vital for targeting sales strategies, promoting value propositions, and developing a successful approach.
Finally, the “Value Ladder” is an effective framework for assessing the values that characterize customer intentions and purposes. These values highlight the benefits expected from the solution, and solution features help anchor sales arguments. Understanding what motivates customers is key to developing meaningful solutions.
© marketingdecision.org
The Value Ladder tool introduced here is an excellent way to assess the value of a solution as perceived by customers, especially when compared to its benefits and features. This tool closely aligns with the “Why,” “What,” and “How” methodology, focusing on identifying and clarifying the underlying purpose of a project or solution. Despite its simplicity, the Value Ladder can have a significant impact on project outcomes.
Be sure to leverage the expertise and customer knowledge of extended teams—both those who have direct contact with customers and those who contribute indirectly. Their insights are often invaluable in understanding what customers truly value and in refining your solution accordingly.
The following section may include tools, some free, some with a fee to support this site development. If you consider a tool should be presented in this section and is missing, please let us know at: contact@marketingdecision.org
The Value Ladder bridges the gap between customer values and solution features. It is essential for assessing and comparing solutions across different customer segments. Moreover, it helps you compare solutions against each other while considering customer needs and behaviors. This makes it a critical tool for future solution development.
A valuable exercise for marketing teams is to consider the Value Ladder for different segments. Divide a large team into smaller groups of about five people, and have them discuss the Value Ladder for a specific segment. Make sure the segment is well-defined and provide examples of customers. Involving salespeople to bring their own examples is also useful. This exercise has many benefits, such as identifying customers who fit into certain segments, describing potential pitfalls, and suggesting sales strategies to better align with customer needs.
The Value Ladder is a key tool for mapping customer values to benefits and features. It is an effective method for understanding why certain solutions meet customer needs and how to develop new features and capabilities to boost competitiveness by optimizing solution offerings.
Explore tools related to the topics covered in this section. For a wider selection, visit our webshop using the link below, or continue browsing our marketing mix pages for additional insights and solutions.
© 2025 MARKETING DECISION SOLUTIONS. All Rights Reserved.
