Customer Perceived Value

Customer Perceived Value

Introduction

Customer perceived value has the great importance in both practitioner and academic literature. The aim of the article is to explore the concept of customer perceived value, which is budding up in the theory of development. The research identifies the notion of customer perceived value in the framework of the insurance services, a group of services in general and retail customer for banking. It uses the qualitative methodology for collecting and analyzing data. There are different classified sets being used to evaluate the perceived value by the customer. The appearance of hierarchy is grounded in strategic implications for decision maker to look at the advanced levels while developing a service.

Discussion

Customer perceived value is the disparity between the perceived alternatives and the potential customer's evaluation of all the costs and benefits that are offering. It has two concepts; one is total customer value (TCV) and second is total customer cost (TCC). TCV is the professed monetary value of the economic, psychological and functional benefits that customer expects from the offering market. TCC is called the package of costs consumers expect to invite in obtaining, assessing, disposing and using of the present offering market. An example can be quoted here to simplify the statement. Suppose the purchaser of a construction corporation wants to buy an automobile from Toyota and Honda Company. He would obviously visit the place where the desired company's automobiles are selling out. After reaching there, the sales representatives will carefully explain about the features of the automobiles. The purchaser is aiming to use his vehicle for the office work therefore he is expecting the great durability, performance and reliability. The buyer finally evaluates his desired automobile and he finally decides to buy the vehicle of Toyota as he thinks it has the higher product value based on perceived durability, resale value and reliability. The buyer also perceives difference in the supplementary services such as training, delivery and maintenance. He planned to purchase the Toyota automobile as according to him that is more providing far improved services and further responsive and knowledgeable representative. In this regard, the higher value placed to the Toyota's image. Here we need to understand that the buyer concluded all the factors in making his decision especially from the four factors; services product image and representative and perceives Toyota is delivering the great customer value.

We have observed two important characteristics in customer value, with the purpose of clarifying the different points of value perceived by the customer and analyzing the common points of the definitions given in the literature. Firstly, it underlies the use of the manufactured goods which create the difference in organization and personal values. Secondly, the value is perceived by the customer but seller did not determine this objective in order to advertise his goods. It is important to keep in mind that customer is able to perceive whether service or product does not offer the value. In the general words, perceived value is explained as a judgment ...