Value proposition

Broadly speaking, ‘value proposition’ refers to the benefits one receives by adopting a particular product, approach, or technology, as compared to what you currently have, or what some other competitive offering would provide. In monetary terms, the value proposition is what the customer gets for his/her money/time. It can also be regarded as differences in performance and/or cost between two different alternatives, such as response speed, product or service quality, and the relative performance in terms of satisfaction or preference. Search terms: ‘return on investment,’ ‘cost benefit,’ ‘relative value,’ ‘relative performance,’ etc.

Source: Dr. Norm Archer, McMaster University, July 2009.