SEE HOW MUCH, NOT
HOW LIT T LE, YOU CAN
GIVE FOR A DOLLAR
MAXIMIZE CUSTOMER BENEFITS
enry Ford spotted a gap in
the market for a mass-
produced car that ordinary
Americans could afford. The Model
T Ford was launched in 1908 and
was still selling well nearly 20 years
later. During this period, Ford
regularly improved the car. For
example, the first version of the
Model T required the driver to crank
the engine by hand to start it, but
later models had an electric starter.
Ford did not opt to make customers
pay more for this better product. In
fact, he did the opposite. The price
of a Model T Ford fell every year
from 1909 until 1916. Ford saw the
importance of offering more for less.
When cost-savings were made on
the production line, they were
The customer expects...
But any extra features and benefits included
will help to maximize customer satisfaction.
...high-quality goods. ...value for money.
See how much, not how little,
you can give for a dollar.
1850 Consumer choice theory
is developed by UK economist
William Jevons—according to
this theory buyers seek out
products that offer the best
value for money.
1915 US businessman
Vincent Astor establishes
the first supermarket, in
1971 Businessman Rollin King
and lawyer Herb Kelleher set
up Southwest, the world’s first
low-cost airline, in Texas.
1995 The Liberal government
in Canada, under the leadership
of Jean Chrétien, manages
to cut public spending by
nearly 10 percent in their
attempt to provide taxpayers
with more for less.