Value Proposition

AAA

DEFINITION of 'Value Proposition'

A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

INVESTOPEDIA EXPLAINS 'Value Proposition'

Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition is concise and appeals to the customer's strongest decision-making drivers. Companies pay a high price when customers lose sight of the company's value proposition.

RELATED TERMS
  1. Activities, Interests And Opinions ...

    A person's characteristics used by market researchers to construct ...
  2. American Customer Satisfaction ...

    An index that provides information on how satisfied U.S. consumers ...
  3. Prophet's Reputation Management ...

    An index created by strategic brand and marketing consultancy ...
  4. Economic Moat

    The competitive advantage that one company has over other companies ...
  5. Market Segmentation

    A marketing term referring to the aggregating of prospective ...
  6. Brand Equity

    The value premium that a company realizes from a product with ...
Related Articles
  1. Advertising, Crocodiles And Moats
    Professionals

    Advertising, Crocodiles And Moats

  2. The Pros And Cons Of Sports Investing
    Personal Finance

    The Pros And Cons Of Sports Investing

  3. What is an economic moat?
    Investing

    What is an economic moat?

  4. What Can an Investor Learn from DuckTales?
    Investing Basics

    What Can an Investor Learn from DuckTales?

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center