Functional value relates to the product’s or the service’s ability to perform its utilitarian purpose.
Woodruff identified that functional value can have several dimensions. One dimension would be
performance related. This relates to characteristics that would have some degree of measurability, such as
appropriate performance, speed of service, quality, or reliability. A car may be judged on its miles per
gallon or the time to go from zero to sixty miles per hour. These concepts can also be seen when
evaluating a garage that is performing auto repairs. Customers have an expectation that the repairs will be
done correctly, that the car will not have to be brought back for additional work on the same problem, and
that the repairs will be done in a reasonable amount of time. Another dimension of functional value might
consider the extent to which the product or the service has the correct features or characteristics. In
considering the purchase of a laptop computer, customers may compare different models on the basis of
weight, battery lifetime, or speed. The notion of features or characteristics can be, at times, quite broad.
Features might include aesthetics or an innovation component. Some restaurants will be judged on their
ambiance; others may be judged on the creativity of their cuisine. Another dimension of functional value
may be related to the final outcomes produced by a business. A hospital might be evaluated by its number
of successes in carrying out a particular surgical procedure.
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