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CREATING CUSTOMER VALUE : : - Coggle Diagram
CREATING CUSTOMER VALUE : :
Customer Value
Social
Sharing information, pictures, and videos with friends.
Functional
Consumers consider not only the price but also different features
Experiental
Intangible psychological and emotional value that can be derived from brands or great service
Economic
When a product provides tangible monetary savings either at the time of purchase or over its long-term
Economic Value to the Customer (EVC)
The basic idea of economic value is consider the total cost of ownership or life cycle cost. This is the cost of owning a product over its entire useful life.
Important Points
EVC is the maximum price a customer should be willing to pay for a product.
EVC is calculated as the total life cycle cost or cost of ownership over the entire life of a product.
EVC for a product is estimated compared with an existing product used by the customer. In other words, EVC is relative, not absolute
Functional Value
Another way that companies emphasize the value of a product or service to customers is by offering new features, or functional benefits.
Social Value
Many products and services have strong network effects, where the value of a product or service for a customer increases significantly as more and more customers adopt it.
Preference Formation
Social Capital
Social Relationships