Here's a math question.
It's about startups "philosophy" of maximizing value for customers as oppose to their own value. I'd like to represent this in mathematical form.
The variables:
x: perceived value provided by your solution to the customer
y: perceived value provided by competitive solution to the customer
a: value captured by you
b: value captured by your customer
The goal is to maximize
x-y, and
b under constraint of minimum value captured by you
(x-y)
Joni, your question is an interesting one. I think I understand it; however, it is possible that I am misreading it.
It sounds like you are addressing a single customer who might purchase the good or service from the startup firm. Another way of looking at it is considering a series of customers, arranged in sequence like on a demand curve. Presumably, some customers gain more value from the startup than others due to factors like proximity, preferred attributes of the startup's service, products, pricing, and the like.
If this is the case, then your question is remarkably close to maximizing the combination of producer's surplus (PS) and consumers' surplus (CS), which resemble a and b respectively in your example. Although the proportionality of a and b could be constant (i.e., with linear demand-type functions and marginal cost or supply-type functions, in reality, they may not remain proportional if either function is non linear.
I hope this helps.
Rob
You can review the Technology Acceptance Model. It is backed by several studies and currently, it is used to measure the "User Experience".
Here its the basic paper.
"User acceptance of information technology: system characteristics, user perceptions and behavioral impacts"
Fred D. Davis
I hope this helps.
I think you should considera in your model purchase decision. Considering that, formulating something would be much easier.
- Badges
- Science topic
- Similar topics
- Geoscience
- Asia
- India