Customer''s mental process of judging value, Marketing Management

Customer's mental process of judging value:

1.      The customer assigns weight age for each benefit; different benefits gain different weight age, depending on the priority assigned to them by him.

2.      The total weight thus assigns to a given product offer, indicates the total value that the customer attributes to it. It is also called the total customer value. It represents his personal estimate of the total benefits he would gain from the product.

3.      Now the cost of securing the product. Price of the product is just one element of the cost (through the major element) to the customer. For the firm, the price is fixes may cover all its costs or most of it, but for the customer, over and above the price, several other costs are to be reckoned. He may have to place an order for the product and wait, the after sales service location may be far off the service cost may be high and the spares may be difficult to get. The customer allocates a cost of the each such item. The price of the product plus all such incidence of costs make up the total cost for the customer. It is called the total customer cost.

4.      Total customer value minus total costumer cost is the delivered value to the customer; it is termed as customer delivered value. It is the customer's net value gained from the transaction. Lesser the cost for the customer It is the delivered value for him.

5.      For the same product offer, different customers arrive at different estimates of the value. In the matter of the cost too. The estimates of the customers differ. This is what makes the market's task challenging.

Posted Date: 9/19/2012 3:39:34 AM | Location : United States







Related Discussions:- Customer''s mental process of judging value, Assignment Help, Ask Question on Customer''s mental process of judging value, Get Answer, Expert's Help, Customer''s mental process of judging value Discussions

Write discussion on Customer''s mental process of judging value
Your posts are moderated
Related Questions
For this Final Project, imagine that an organisation that owns and manages a brand is experiencing a critical downturn in its business. The organisation needs to expand its brand o

Marketing management philosophies 1.      The production concept: The production concept holds that consumers will favour products that are available and highly affordable;

Problem 1 What are the four types of analysis used to develop a comprehensive model for evaluation of a sales organisation? Four types of analysis used to develop a compr

Question 1 (a) Recode respondents based on the following: (i) Q2 into "unlikely" (1), "perhaps" (2) and "likely" (3) using the following classification: Old and New Values

Discuss about the combination of push and pull sales promotion strategies. Combination of push and pull sales promotion strategies Car dealers frequently provide a

Sam has grades of 96,88,86, and 92 on his first four exams. What score does he need on his final exam to have an average of at least 90?

Characteristic of Marketing Planning: 1. marketing planning is a formal and syatematic approach towards planning of all marketing activites product positioning price setting di

1. Sam is a shift leader in the area of a plant that produces extruded plastic parts. Sam's supervisor has asked Sam to reduce the average changeover time on his shift from 10 minu

The country of Changeland has, for many years, operated as a military dictatorship. Last year, though, a people's revolution brought a democratic election for the first time in liv

QUESTION You work as an Assistant in the Product Planning Division of Gillette Co Ltd. You have been asked by your Manager to write a report, using examples from the company's