CUSTOMER VALUE

Dr. Devkant Kala

 Introduction
Marketing creates, communicates, & delivers value to
customers.
 Customer Value

Customer Perceived Value (CPV) is the difference between

prospective customers evaluation of all benefits & costs of an
offering & perceived alternatives.

Customer Perceived Value (CPV) = Benefit - Cost

 Customer Value

Benefits = Functional + Psychological

Cost = Monetary + Time + Efforts + Psychic

 Customer Value

Benefits = Functional + Psychological

Cost = Monetary + Time + Efforts + Psychic

Elements of Customer Value

Emotional
Economical

Functional

Customer Value
 Customer Value

◼ Value is subjective in nature.

◼ Value is a dynamic concept (Competitors, context,

consumers).

◼ Organization needs to sustain the process of value

creation over a period to sustain itself in the market.
 Customer Value

Guava has enough iron, four times the vitamin C that oranges do. It is four
times better at boosting immunity. Also, it balances the body’s sodium and
potassium levels, treating tummy and tooth problems, busting stress, good for
the eyes and the skin.
 Customer Value

Amazon Prime members spend - $1200 annually

Non-Amazon Prime members spend - $500 annually
Why Customers are more Profitable over time??

#The loss represents Customer Acquisition Cost

Source: Harvard Business Review: From zero defections: Quality comes from services
Thank You.