BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The customer value is the net benefit of a product or service to a customer. It is calculated by taking the perceived benefits and subtracting the perceived costs. The customer value formula is: Perceived Value = Perceived Benefits / Cost.

Detailed explanation-2: -Customer value is best defined as how much a product or service is worth to a customer. It’s a measure of all the costs and benefits associated with a product or service. Examples include price, quality, and what the product or service can do for that particular person.

Detailed explanation-3: -The main reason customer value is important is because it affects customer satisfaction. A rational customer will compare the benefits and costs. They buy a product if the benefits outweigh the costs, giving them satisfaction.

Detailed explanation-4: -Benefits are the reasons customers buy the product or service. For example, the benefits of some ovens to buyers include safety, ease of use, affordability, or-in the case of many ovens that feature stainless steel casings-prestige.

Detailed explanation-5: -With a consumers’ wants and resources (financial ability), they demand products and services with benefits that add up to the most value and satisfaction. The four types of value include: functional value, monetary value, social value, and psychological value.