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
You work as a marketing consultant and have been approached to develop a Comprehensive Corporate Plan for one of the following events to be held at the Ricoh Arena: Olympic footbal

What is the focal point of marketing with building and delivering customer value and satisfaction? Focal point of marketing with building and delivering customer value and sati

The financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection (optional), a projected balance sheet, a cash flow projection and a bre

Why is green or environmental marketing important? Green marketing is important since the mankind has restricted resources upon the earth, along with that he/she should attem

what are the core marketing concepts?

Question 1: The PEST framework which prompts companies to consider Political, Economic, Social and Technological factors - a rather broad bush form of analysis - is scarcely ad

Question 1: The term "Below the Line Media" refers to the non-commission paying advertising media like direct mail, sales literature, point of sale display material, exhibition

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

Q. Show the advertising effects on Employment? Effect on Employment: - Advertising has created together direct and indirect employment to various persons in the society. Thes

What are the Aims of marketing communications Aims of this introductory module are to explore some of the concepts associated with marketing communications and to develop an a