The equation a buyer applies to assess a product's value is
A) value = monetary price − customer benefits.
B) value = customer costs − customer benefits.
C) value = customer benefits − customer costs.
D) value = customer benefits − monetary price.
E) value = customer benefits − time and effort.

Question

Quizplus · Accepted Answer

Customers assess a product's value by comparing the benefits they receive from the product with the costs they have to pay for it. The costs include monetary costs, time, and effort whereas the benefits include functional benefits, emotional benefits, and social benefits. The formula for value is therefore: value = customer benefits - customer costs.

The Equation a Buyer Applies to Assess a Product's Value