The creation of customer value is the purpose of each institution. Customer value is defined as the right quality for the right price– from the view of the customer. The addition „from the view of the customer“ makes clear that a subjective appraisal, rather than an objective quality rating versus the objective price, is crucial for the measurement of customer value. Also, since in most cases a customer can choose between alternatives, customer value has to be considered relative to competitors. A superior customer value is crucial for the consolidation and the expansion of the market- and competition position of an enterprise.
Please also refer to Customer value analysis.« Back to Glossary Index