Friday, 8 August 2014

Customer Perceived Value

 Customers tend to be value maximizers. They purchase that product which they believe delivers the maximum value. The concept of Customer perceived value describes the difference between the potential customer's evaluation of all the benefits and all the costs of a product's offering and the perceived alternatives. Managers do this analysis on the basis of the following diagram, which describes the total customer benefit and the total customer cost, in order to understand the over customer perceived value concept.

Total consumer benefit is the perceived monetary value of the economic, functional and psychological benefits that a consumer expects from a market offering. For Farmlite Biscuits, the consumer benefits are - 






Total Consumer cost is the perceived bundle of costs that a consumer expects to incur in the process to evaluating, obtaining, using and disposing a product's offering. This includes monetary, time, energy and psychological costs. For Farmlite, the total consumer costs are -


















































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