B2C Value Pyramid
To better understand why consumers buy and what they really want, researchers from Bain & Company developed Value Pyramids for consumers (B2C).
Let’s focus on the B2C (Business-to-Consumer) Value Pyramid. This type of Value Pyramid identifies the 30 Elements of Value for consumers and is grouped into four categories: functional, emotional, life-changing and social-impact elements.
Functional elements – at the base of the pyramid are the elements that demonstrate what a product can do for the consumer. The functional level consists of 14 elements which include ‘saves time’, ‘makes money’, ‘simplifies’, ‘reduces risks’, ‘efforts’, and costs as well as ‘quality’ and ‘informs’.
Emotional elements – the next level shows the product’s emotional effect on the consumer. On this level are 10 elements which include ‘reduces anxiety’, ‘rewards me’, ‘nostalgia’, ‘wellness, ‘fun/entertainment’ and ‘provides access’.
Life-changing elements – the third level exhibits elements on how a product or service change’s consumer’s life. The level has only five elements and these are ‘provides hope’, ‘self-actualization’, ‘motivation’, ‘heirloom’, and ‘affiliation/belonging’.
Social-impact elements – the top level of the pyramid has one element called self-transcendence, which indicates how a product or service brings value to society.
As explained by Jamie Cleghorn, one of the co-authors of the research, “The elements of value at the base are the more common objective criteria we’re all familiar with. It is the higher-level, subjective elements that companies often fail to pay enough attention to.”
Bain & Company and Research Now (an online sampling company) found that companies that got a high score on four or more value elements had more loyal customers and better revenue growth than companies with just one high score.
To better understand why consumers buy and what they really want, researchers from Bain & Company developed Value Pyramids for consumers (B2C).
Let’s focus on the B2C (Business-to-Consumer) Value Pyramid. This type of Value Pyramid identifies the 30 Elements of Value for consumers and is grouped into four categories: functional, emotional, life-changing and social-impact elements.
Functional elements – at the base of the pyramid are the elements that demonstrate what a product can do for the consumer. The functional level consists of 14 elements which include ‘saves time’, ‘makes money’, ‘simplifies’, ‘reduces risks’, ‘efforts’, and costs as well as ‘quality’ and ‘informs’.
Emotional elements – the next level shows the product’s emotional effect on the consumer. On this level are 10 elements which include ‘reduces anxiety’, ‘rewards me’, ‘nostalgia’, ‘wellness, ‘fun/entertainment’ and ‘provides access’.
Life-changing elements – the third level exhibits elements on how a product or service change’s consumer’s life. The level has only five elements and these are ‘provides hope’, ‘self-actualization’, ‘motivation’, ‘heirloom’, and ‘affiliation/belonging’.
Social-impact elements – the top level of the pyramid has one element called self-transcendence, which indicates how a product or service brings value to society.
As explained by Jamie Cleghorn, one of the co-authors of the research, “The elements of value at the base are the more common objective criteria we’re all familiar with. It is the higher-level, subjective elements that companies often fail to pay enough attention to.”
Bain & Company and Research Now (an online sampling company) found that companies that got a high score on four or more value elements had more loyal customers and better revenue growth than companies with just one high score.
