Value

The buyer chooses the offerings that according to his perception deliver the most value, the sum of tangible and intangible benefits and costs. Value, a fundamental sales concept, is primarily a combination of quality, service and price called the customer value triad.

Consider the following:

• Perceptions of value increase with quality and service but decrease with price.
• Marketing should be thought of as the identification, creation, communication, delivery and monitoring of customer value.
• Satisfaction reflects a person's judgment of a product's perceived performance relative to expectations.
• If performance is less than expectations, the customer is disappointed. If it is equal to expectations, the customer is satisfied. If it exceeds them, the customer is delighted.