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Customer Perceived Value

Customer delivered value is the difference

between total customer value & total
customer cost. And total customer value is
the bundle of benefits customers expect
from a given product or a service.

Product
Value

Services
Value Total
Customer
Personnel value
Value

Image
Value Customer
Delivered
Value

Monetary
Price

Time
Cost Total
Customer
cost
Energy
Cost

Psychic
Cost

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Customer Perceived Value

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Benefits
• Functional, basic purpose, Ex- shoe,
eating maggi, hotel room
• Social benefit, approval from peers,
status symbols..
• Personal, feel good, by using the products
• Experiential, sensory experience
Can all the four be there in a product?
Ex-

Costs
“The real price of anything is the toil and
trouble of acquiring it” Total customer cost
includes the buyer’s time, energy and
psychic costs
• Monetary ??
• Temporal, Time is money
• Psychological, mental energy and stress,
haggling, waiting
• Behavioral, physical behavior, buying
moving

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Delivering High Customer Value

• Loyalty A deeply held commitment to re-buy or
re-patronize a preferred product or service in the
future despite situational influences and
marketing efforts having the potential to cause
switching behavior
• Value Proposition The whole cluster of
benefits that the company promises to deliver
• Value-delivery system – all experiences
that customer will have in the way of obtaining
and using the offering

Increasing Value

One can work on both sides reducing

customer costs involved to increase the
total customer value