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CUSTOMER VALUE image, is the value of the product or service to…
CUSTOMER VALUE 
ECONOMIC VALUE
- refers to the costs and savings involved.
- considers the total cost of ownership or product life cycle cost (utility).
It is calculated as the total life-cycle cost of the product (including purchase cost and post-purchase costs)
It is estimated in comparison to an existing product used by the customer (it is relative and not absolute)
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Market implications
EVC is useful for introducing new products and determining their positioning relative to existing products.
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EXAMPLE
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frequent drivers get more value from using SuperOil, so these drivers may be better targets for Texas Oil, but infrequent drivers are unlikely to see any value in Super Oil.
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Conventional motor oils must be changed every 6,000 miles at a cost of $35 per change, which includes $10 for the cost of the oil (or $2 per quart), $20 for labour and $5 for the cost of disposing of the five quarts of old oil. SuperOil requires the same amount of oil, but must be changed once every two years, regardless of mileage.
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Consumers may not believe that SuperOil can last two years, regardless of the number of miles driven. Even if it does last, consumers may worry that it will damage their car engines in the long run. Consumers may also question the availability of SuperOil and the ability of expert mechanics to change this oil,
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Suppose the company "Texas Oil" plans to introduce a new synthetic motor oil. "Super Oil" is to be changed less frequently than the non-synthetic motor oils currently available on the market.
EVC ignores other functional or intangible benefits that the product may provide. ->SuperOil can be more environmentally friendly because it does not need to be disposed of as frequently.
FUNCTIONAL VALUE
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This value refers to how the product allows us to do different things, demonstrating efficiency, convenience, reliability, among others.
Limitations
The multi-attribute model is compensatory = a high rating on one attribute can compensate for a low rating on another attribute.
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EXAMPLE
According to consumer choice, the HP and Lenovo brands are their top choices, however the HP model emerges as the consumer's preferred model and the Lenovo laptop as the least preferred model.
Finally, Lenovo could draw customers' attention to a completely new attribute that may not be the most important: excellent customer service, improved display quality, or security features such as a camera shutter or privacy filter built into the notebook screen.
Lenovo would have to assess why its notebook scores so poorly, comparatively, on hard disk storage and RAM, so Lenovo's goal would be to improve on the attributes that seem most important to the consumer.
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a situation where a consumer wants to buy a new computer and he has chosen specific features that will give him the most benefit, so he will have to make a selection between the different brands on the market to choose the one that suits him best.
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EXPERIMENTAL VALUE
Design
taking into account the design, colour, presentation and packaging of the product is very important and generates sensitivity in consumers
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The brand
it signals quality, status and image and therefore represents an immense psychological value for consumers, and allows companies to charge premium prices
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Emotional benefits
the role of marketing and advertising is not only to convey information about the features of a product or service, but also to build an emotional bond with customers to create long-term loyalty.
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The value created through emotions is difficult for competitors to imitate and provides a competitive advantage to companies in the long term.
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Front-line employees:
they should be hired for attitude rather than aptitude, their people skills are far more critical than their technical knowledge of the product.
Customer management:
The experiential value a customer perceives in a product or service is often closely related to how the organisation manages its customers; reducing costs by offloading more and more tasks to customers, everything is computerised.
Product offerings:
companies often respond by adding more and more features to their products and introducing a large number of items to complete their product line
SOCIAL VALUE
Many of the benefits we derive are based on our social interactions with family and friends. So they play different roles:
Preference formation
consumers' preferences are constructed and strongly influenced by their peers.
People declare their tastes according to their social circle, e.g. trends in songs, series.
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Social capital:
many people upload content to their social networks, mainly for THREE reasons:
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Social capital not only allows consumers to enjoy rights, but can also be highly lucrative. On Instagram and YouTube, social media celebrities are created who can earn millions just for their videos or posts or through advertising.
Network effects
Many products and services have strong network effects, where the value of a product or service to a customer increases significantly as more and more customers adopt it.
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Social Relationships:
Too often, companies offer products and services with the intention of satisfying consumers' functional needs while ignoring the social interactions that drive most of their behaviour.
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THREE IMPORTANT POINTS, EVC:
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