January 2023
Intermediate to advanced
250 pages
11h 7m
English
Content preview from Logistics and Supply Chain Management, 6th Edition
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Buying performance
A further factor leading to the growing convergence of the product and the service package is the increasing tendency for customers to seek to buy performance rather than products. This is not a new idea; as we mentioned in Chapter 2, one of the early marketing gurus, Theodore Levitt, pointed out many years ago that customers don’t buy products, they buy benefits. This concept is manifested in the trend towards performance-based purchasing whereby customers may not want to own the product but rather pay for the benefits they derive from it.
It has been suggested that, in consumer markets as well as in industrial markets, there is a trend away from ‘owning’ to ‘using’. For example, rather than owning a car many individuals ...
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