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Difference between revisions of "Customer Perceived Value (CPV)"

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[[Customer Needs]]<br />
 
[[Customer Needs]]<br />
 
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[[Customer Retention]]<br />
 
[[Customer Service]]<br />
 
[[Customer Service]]<br />
 
[[Customer Service Management]]<br />
 
[[Customer Service Management]]<br />
 
[[Customer Relationship Management (CRM)]]<br />
 
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== References ==
 
== References ==

Revision as of 18:56, 10 October 2019

Business Dictionary defines Customer Perceived Value (CPV) as "the anticipated benefit from a consumer's perspective of a product or service." The customer perceived value stems from tangible, psychological and social advantages, and since it affects demand for a product, it needs to be taken into account when setting prices.[1]

Customer perceived value is a concept widely used in marketing and branding circles. Customer perceived value is the notion that the success of a product or service is largely based on whether customers believe it can satisfy their wants and needs. In other words, when a company develops its brand and markets its products, customers ultimately determine how to interpret and react to marketing messages. Companies spend significant time researching the market to get a sense of how customers think and feel. Customer perceived value is the notion that the success of a product or service your business offers hinges on whether customers believe it can satisfy their wants and needs.[2]

Customer Perceived Value is the evaluated value that a customer perceives to obtain by buying a product. It is the difference between the total obtained benefits according to the customer perception and the cost that he had to pay for that. Customer perceived value is seen in terms of satisfaction of needs a product or service can offer to a potential customer. The customer will buy the same product again only if he perceives to be getting some value out of the product. Hence delivering this value becomes the motto of marketers.

Customer Perceived Value = Total Perceived Benefits – Total Perceived Costs

The CPV is kind of an evaluation done by customer on what value a product or a service would be able to provide if he/she buys it by paying money.[3]

Customer Perceived Value (CPV)
source: Marketing91


See Also

Customer
Customer Acquisition Cost (CAC)
Customer Centricity
Customer Churn
Customer Data Integration (CDI)
Customer Data Management (CDM)
Customer Demographics
Customer Due Diligence (CDD)
Customer Dynamics
Customer Effort Score (CES)
Customer Engagement
Customer Engagement Hub (CEH)
Customer Experience Management (CEM)
Customer Lifecycle
Customer Lifetime Value
Customer Loyalty
Customer Needs
Customer Psychographics
Customer Retention
Customer Service
Customer Service Management
Customer Relationship Management (CRM)
Stakeholder

References

  1. Defining Customer Perceived Value (CPV) Business Dictionary
  2. What is Customer Perceived Value (CPV) Chron
  3. Understanding Customer Perceived Value (CPV) MBA Skool


Further Reading

  • Applications of Customer Perceived Value (CPV) in the Indsutries ConsumerBehaviorGroup9
  • Customer Perceived Value: Understanding What Appeals to the Consumer Gina Winsky