The concept of Value Proposition emerged with modern marketing theory as a tool to articulate the concrete value offered to customers. While traditionally framed as a statement summarizing benefits, contemporary approaches view it as a strategic bridge between intrinsic brand uniqueness and customer expectations. In Beyond the Price Jungle by Prof. Gabriele Carboni, , the Value Proposition is situated within the Differentiation Cycle, positioned after the USP: it represents the moment where the brand’s promises must align with real, perceivable value. In Contemporary Marketing Management, the Value Proposition must be grounded in evidence, authenticity, and market relevance, serving as both a persuasion tool and a commitment to actual performance.

The Value Proposition is the formal articulation of what customers can expect after purchasing a product or service. It transforms differentiation from a communicative promise into a customer-centric expectation, describing the functional, emotional, and experiential value that will be delivered.

Within the Differentiation Cycle presented in Beyond the Price Jungle, the Value Proposition is the third phase and derives its credibility from the preceding stages:

• It draws substance from the Marketing Distinguo, which identifies the brand’s concrete and distinctive attributes.

• It is informed by the Unique Selling Proposition (USP), which creatively communicates why the offering should be chosen.

As a result, an effective Value Proposition is neither aspirational nor abstract; it must be verifiable, relevant, and directly connected to what the brand actually delivers.

Its purpose is to confirm the customer’s decision at the moment of purchase by clarifying the specific advantages—performance, quality, service, experience, or symbolic meaning—that will be realized.

In Contemporary Marketing Management, the Value Proposition is interpreted as a strategic contract between organization and customer.

It provides the criteria through which customers will evaluate satisfaction and eventual loyalty, and therefore directly influences the next phase of the cycle: Brand Positioning, the perception that emerges after product experience.

A high-end coffee machine brand may articulate a Value Proposition such as: “Consistent barista-level coffee at home, with durable engineering and intuitive controls.” This promise must reflect real experience; if the product fails to deliver these outcomes, the Value Proposition collapses and negatively affects the brand’s positioning.