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8 Examples of Customer Value

 , June 01, 2020
Customer value is the perceived worth of a product or service in the eyes of the customer. This has several common elements:

Customer Needs

The degree to which a product or service solves customer problems. For example, a running shoe that is stylish, comfortable and high performance in the opinion of a customer or target market such as amateur marathon runners who need a cushy ride to increase their endurance.
Comfort
Compatibility
Convenience
Efficiency
Features
Functions
Health
Performance
Style
Taste

Ease of Purchase

Customers may find the purchasing process itself to be stressful or an uninteresting use of time. As such, they may assign a high value to goods that reduce purchase uncertainty or are otherwise easy to buy. For example, a customer who is worried about unhealthy ingredients in food may place a high value on products that clearly explain their ingredients in plain language.
Guarantees
Informative Advertising
Instructional Content
Product Information
Product Packaging
Product Specifications
Purchase Convenience
Purchase Experience
Warranties
Word of Mouth

Ease of Use

How easy it is to use the product or service to achieve the customer's goals. For example, a bicycle helmet that just gets out of the way versus one where you are always having to adjust straps as they feel uncomfortable.
Convenience
Efficiency
Learnability
Productivity
Reliability
Usability

Quality

Quality is how well a product suits its purpose from the perspective of the customer. This overlaps with ease of use and includes elements such as durability. Customers often have specific ideas about quality. For example, a customer who perceives beverages in glass bottles as higher value than plastic.
Country of Origin
Craftsmanship
Design Quality
Durability
Fit for Purpose
Materials
Resilience
Sustainability

Opportunity Cost

Customers view the purchasing decision as a series of opportunity costs. They look at the products available to them in a competitive market and decide on a purchase based on some rationale. For example, a traveler who picks a hotel because it is closest to a theme park and seems family-friendly this may be chosen at the opportunity cost of a more luxurious hotel down the road that probably has better food but isn't likely to be as friendly to young children who make plenty of noise and chaos.
Affordable Status
Best Value for Price
Cheapest Price
Highest Status
Least Risky
Lowest Cost
Most Exciting
Only Product Available
Only Product That Meets Needs
Unique Feature

Brand Perceptions

Consumers think about brands as having a reputation and personality -- much like people. This is known to greatly influence customer value. For example, consumers commonly value a brand higher simply because the recognize it even if they have no information whatsoever about the brand. For example, a consumer buying corn soup may pay $4 for a soup with recognizable brand symbols on it and leave a $2 equivalent soup on the shelf because it doesn't look familiar.
Brand Aversion
Brand Awareness
Brand Image
Brand Loyalty
Brand Recognition
Brand Reputation

Social Status

People may feel that products and services are an expression of themselves that can earn them respect from others. This can be viewed as commoditization of the human experience. For example, a person who wants to be cool can buy cool, or feels they can.
Altruism
Attractiveness
Bravery
Connectedness
Coolness
Culture
Independence
Intelligence
Popularity
Trendiness
Wealth
Youth

Experience

The end-to-end customer experience is a fundamental part of the value of a product or service to customers. For example, a single poor service interaction can cause a customer to regret a purchase and develop brand aversion. This is often viewed as a journey that can include everything from first hearing about a product to participating in brand culture.
Awareness
Brand Culture
Customer Service
Learning & Discovery
Product Culture
Product Experience
Purchase
Service Experience
Support
Unboxing
Overview: Customer Value
Type
DefinitionThe perceived worth of a product or service from the perspective of a customer or target market.
Related Concepts

Customer Value

This is the complete list of articles we have written about customer value.
Brand Aversion
Brand Awareness
Brand Culture
Brand Image
Brand Loyalty
Brand Recognition
Brand Reputation
Comfort
Convenience
Coolness
Culture
Customer Experience
Customer Journey
Customer Service
Design Quality
Durability
Ease Of Use
Efficiency
Fit For Purpose
Independence
Intelligence
Learnability
Materials
Opportunity Costs
Product Experience
Productivity
Reliability
Resilience
Service Experience
Style
Sustainability
Target Market
Unboxing
Usability
Wealth
Word Of Mouth
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