Total Customer Value and Total Customer Cost
= Functional benefits + Emotional benefits/Monetary costs + Time costs + Energy costs + Psychic costs
Total Customer Value
- Product value: It is generated by the basic attributes of product such as product quality, packaging, design, functions, price along with advantages and benefits.
- Service value: It is generated by support services offered along with the product. They can be before sales service, during sales service and after sales services such as counseling, installation, delivery, warranty, guarantee, money refund etc.
- Personnel value: It is generated by efficient sales persons who use profession selling skills to serve and satisfy customers. Efficient sales persons use their salesmanship to overcome customer objections effectively which helps to increase the customer value.
- Image value: This value is generated by ownership and use of reputed brand though brand equity where buying and using specific brand provides the customer with an enhanced personal value.
Total Customer Cost
- Money cost: It is the price of the product that customer buys and achieves desired utility. In other words, it is the price paid for the product or service for its utilities by the customer.
- Time cost: It is the time spent for searching, evaluating, buying and other decision processes related to product. High involvement product has high time cost than low involvement product.
- Energy cost: It is the degree of physical effort used by the customer for searching, evaluating, buying desired product and also taking them to their house.
- Psychic cost: It is the cost related to frustration and dissatisfaction of the customer with the product and service. It can occur during various stages of the buying process.