Posted in Marketing and Strategy Terms, Total Reads: 456
Definition: Worth What Paid For (WWPF)
Worth What Paid for (WWPF) is the customer judgement on how satisfied he feels about the product he purchased. The price of the goods is not valued that much as the perceived value of the goods based on which consumers decide whether the good is worth the price that he paid for.
Customers are asked a key question about how they would they rate the worth of the products and services offered to them relative to what the customers are paying for them.
The ratio of the WWPF score for the team and WWPF score for the competitors would give the Customer value added (CVA) score. This helps the team to determine the value it is providing to the customers and motivating them to focus on the same. It is a measure of satisfaction of the customers as compared to the competitors. Based on the perception of value, it helps to decide which products/services need to be purchased. “Customer Value” is the quality received for the price paid
When a customer buys Rs 100 pack of Cadbury Celebrations for a gifting purpose. The pack is worth the price for the customer because of its contents and attractive packaging and it satisfies his needs of gifting his closed one on a festive season.