Question

Which of the following equations describes customer value?

a. Customer value= customer benefits – customer costs
b. Customer value= customer costs – customer benefits
c. Customer value= income – price
d. Customer value= customer benefits – price
e. Customer value= customer benefits – opportunity costs

Answer 1

A. Customer value = customer benefits - customer cost

Step-by-step explanation:

The customer value is the worth of a product or a service as compared to other alternatives in the standpoint of a customer.

It is basically like the worth of obtaining a product or a service is to a customer. Customer value can be considered how a customer benefits from the product minus the cost of obtaining the product.

Benefits and cost does not always have to be in the form of cash. A benefit can be in the form of quality, value, experience and cost can be in terms of time, effort, or energy.