BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Customer value or Customer Perceived Value as it is often now called is a function of the total customer cost and the total customer benefit. It is essentially the difference between the cost incurred by the customer in acquiring the product and the benefit derived from using the product.

Detailed explanation-2: -Total customer benefit is the total monetary benefit of the product and the total customer cost is the total monetary costs the customer expects to incur in evaluating, obtaining, and using the product.

Detailed explanation-3: -Customer value (customer perceived value) is the difference between the benefits a customer receives and the total cost incurred from acquiring, using, and disposing of a product. At the most basic level, buyers make a purchase decision based on the value they perceive a product will deliver.

Detailed explanation-4: -Price is the amount that a buyer must pay to purchase a product or service. Cost is the amount a seller incurs to produce and offer the product or service for sale. Value is the perceived worth of the product or service to the buyer, which can be influenced by factors such as quality, brand, and customer experience.

Detailed explanation-5: -Perceived costs include money, time, and labor. When comparing the difference between perceived benefit and perceived cost, if the difference is positive, customer perceived value is high, meaning customers will buy a product or service.