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

Ask an Expert

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

Write your message here..

Related Questions

Evaluate the customers buying decision process, Question 1: Select any ... Question 1: Select any banking service company that you are familiar with and show how each of the four elements of integrated service management applies to the company. Qu

Desk based research, Jamieson (1997) suggests that Australia's ability to i... Jamieson (1997) suggests that Australia's ability to identify and capture the considerable opportunities which will continue to emerge in the Asian region will play a significant r

Above the line and below the line communication, Above the line and below t... Above the line and below the line communication What has happened hence is that the promotional mix has developed such that original emphasis on heavyweight mass communication

Explain the stages of product life cycle, Q. Explain the Stages of Product ... Q. Explain the Stages of Product life cycle? Stages of Product life cycle. a) Introduction stage - Advertising for consumers and Personal selling for middlemen. b) Growth

Importance of marketing to the society, Importance of marketing Import... Importance of marketing Importance of marketing to the society 1.      Delivery of standard of living to the society: main liability of the marketing is to produce goods a

Selection of an ads agency by quality and calibre of staff, Q. Selection of... Q. Selection of an ads agency by Quality and Calibre of Staff? Quality and Calibre of Staff: - Ad-agency has a variety of specialists like models, copy-writers, artists, etc.

Mcom, the various approaches that are followed by FMCG companies in test ma... the various approaches that are followed by FMCG companies in test marketing

Total sales definition, what definition of total sales? what definition of total sales?

Explain overall objective of marketing information system, Explain about th... Explain about the overall objective of Marketing Information System. The overall objective of MIS is to give inputs by target markets, marketing channels, publics, competitors

Research methodolgy and statistical anaysis, differentiate between histogra... differentiate between histogram and histograms,correlation and regression