What does the term "value proposition" mean?

The term "value proposition" refers specifically to a statement outlining the benefits and value that a product or service provides to its customers. It articulates why a consumer should choose a particular product over the competition by highlighting the unique advantages and benefits that address the consumer's needs or problems. A strong value proposition is clear, concise, and compelling, directly communicating how the product or service can improve the customer's situation or fulfill their desires.

In contrast, options that focus on product pricing, customer service promises, or guarantees of quality, while they might play a role in the overall perception of value, do not capture the essence of a value proposition. The value proposition goes beyond these narrower aspects and encapsulates the overarching reasons a customer should engage with a brand or purchase a particular offering.