Customer Perceived Value Formula: Perceived Benefit Minus Perceived Cost

The video discusses the concept of customer perceived value, which is determined by the relationship between perceived benefits and perceived costs.

Video Summary

  • Perceived benefits refer to how a product or service improves one’s life or makes them feel prestigious, while perceived costs relate to the anticipated financial or effort-related expenses.
  • Asking about cost before revealing the price may disrupt this balance and reduce perceived benefits.
  • The formula for customer perceived value is introduced as perceived benefits minus perceived costs.
  • When perceived costs exceed perceived benefits, customers may feel ripped off or disappointed, resulting in negative perceived value. Therefore, businesses should ensure that perceived benefits outweigh perceived costs to provide a positive customer experience.

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Published by

Crystal Shanks

Crystal Shanks, Certified Business Coach and CEO of Run Right Business Consulting, has been coaching business owners and executives around the world to achieve optimum results since 2009. Coach Crystal teaches her clients proven strategies to build thriving businesses and careers. She has worked with thousands of businesses and executives to generate substantial revenues and maximize profits.