The Definition of Consumer Value

Consumer value is the key to long-term sustainable businesses.

Consumer value and customer value are terms used synonymously. The concept of value describes the consumer's perceived ratio of the price paid for a product or service to the quality or worth received in return.

Factors

Many factors can affect customer perception of value. The price paid is weighed against product quality, services, convenience, style, usability, versatility, functionality, brand reputation, health and safety considerations, environmental effects and more.

Selling

The essence of the selling function in business is communicating the value proposition of your product or service relative to the competition. Customers seek the best value, and salespeople try to match the benefits offered to the customer's needs at the best price point possible.

Customer Retention

Long-term customer retention and loyalty are pinnacle goals of any business. Generating loyal relationships involves consistent delivery of high value to a customer. Relationship factors, such as trust, dependability and reliability, actually increase the consumer's perceived value of a provider over time.

References

• Chew on This: Value: The New Consumer Definition
• Business Dictionary: Customer Value
• International Journal of Design: User Value: Competing Theories and Models