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Definition: Customer Perceived Value (CPV)
Customer Perceived Value is the evaluated value that a customer perceives to obtain by buying a product. It is the difference between the total obtained benefits according to the customer perception and the cost that he had to pay for that. Customer perceived value is seen in terms of satisfaction of needs a product or service can offer to a potential customer. The customer will buy the same product again only if he perceives to be getting some value out of the product. Hence delivering this value becomes the motto of marketers.
Customer Perceived Value = Total Perceived Benefits – Total Perceived Costs
The CPV is kind of an evaluation done by customer on what value a product or a service would be able to provide if he/she buys it by paying money.
Please note that the benefits and costs also include the emotional benefits and costs.
Example of Customer Perceived Value:
While buying a car, the expected reactions from family and friends also become a part of benefits or gain. The customer evaluates whether the particular car would be able to provide whatever he/she is looking for from a car. Whether the car would provide the comfort and the usability. Also for many customer the perceived value would also include the mileage a car gives.
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