Customer Value Proposition

Published by MBA Skool Team, Last Updated: May 17, 2020

What is Customer Value Proposition?

Customer Value Management was started by Ray Kordupleski in the 1980s and after that Customer Value and related attributes had gained popularity. Customer Value Proposition is a marketing term which is a persuasive statement for customers stating detailed benefits that customer will get after purchasing the product or service. It consists of the total benefits which a vendor guarantees that customer will get in return of customer’s associated payment. It basically describes why a customer should buy this product or use this service and designed to convince customers to buy and use them.


It is not only designed to convince customers but also make a point of differentiation from other competitors. A strong CVP can be developed by firms to identify customer’s needs through market research and analysis of the market. A strong and successful CVP is directly related to actual and sustained competitive performance. Two attributes which leads to successful product and need to balanced are- Price and Quality. So, a product should offer value through either one or both of these attributes.


There are three types of Customer Value Propositions-

• All benefits

• Favourable points of difference

• Resonating Focus


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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