Essay on Customer Value

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Added on 2019-09-30

Essay on Customer Value

Added on 2019-09-30

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Running Head: CUSTOMER VALUE1Enhancing Customer Value

CUSTOMER VALUE2IntroductionCustomer Value is defined as the incremental benefit which is derived by a customer throughpurchasing a product. The value can be expressed as the difference between the total of tangibleand intangible benefits and the cost of the product. There are three factors, price, quality andservice, which influence the value of a product. As the quality and service of a product increases,its value also increases. On the contrary, when the price of the product increases without anychange in the benefits, the value of a product decreases. The customer value is categorized intotwo types-- the desired value and the perceived value. The desired value indicates the valueexpected by a customer. On the contrary, the perceived value indicates the value of a productexpected by the customer after considering the cost. The perceived value is highly dependent onthe tangible benefits received by the customer on payment of the cost. The actual value or thetangible benefits of a product can be realized after consumption of the product. When the productprovides actual value which is higher than the perceived value, the customer value becomes veryhigh. On the contrary, when the actual value is lower than the perceived value, the customervalue decreases. Literature ReviewQuality—

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