The value of any product or service is an overall estimation a consumer makes of it. On the other side, it is actually visualization or conceptualization of the relationship that exists between the consumer’s perceived benefits in terms to the perceived costs of the particular receiving these benefits. It is thus expressed as:
Value = Benefits / Cost
Value is thus termed as a subjective as well as relational that come up with the consumers’ estimation and mind set.
Value is actually something that may increase or decrease depending on the perceived benefits. If consumer is happy and satisfied from the product or service, the value automatically increases and thus that particular product or service gain benefits too. For any firm or business, value is an important key element in order to gain potential outcomes. In order to deliver value to the customers, firm should be aware of all the happenings of the market. It thus comprises of the reputation, position, product benefits and overall workings of a market.
In marketing, value can be defined in both ways, either quantitative or qualitative. If we look at the qualitative side, value is something related to the emotions, physical and mental conditions. Whereas, if we look at the quantitative side, value is what we as a consumer actually perceived from any product or service. Thus, for any firm or business, maintaining the optimum level in order to deliver value to their customers / consumers is an important area that actually needs attention in order to deliver more value as to gain more profits.
Ray Donnelly, Colin Linton (2009), “CIM Coursebook: Delivering Customer Value Through Marketing”, Butterworth-Heinemann, pg 286