What does 'value' represent from the customer's perspective?

The concept of 'value' from the customer's perspective is fundamentally linked to their perception of what a product or service is worth. This perception includes not only the financial outlay involved but also the benefits, quality, and overall experience associated with the product or service. When customers assess value, they consider how well the product meets their needs, expectations, and desires compared to alternatives available to them.

This perspective is integral to customer satisfaction and loyalty. When customers feel that they receive more benefit or satisfaction than they are paying for, they perceive high value, which can lead to repeat business and positive word-of-mouth referrals. The understanding that 'value' is subjective, based on individual preferences and expectations, reflects the critical importance of aligning offerings with customer perceptions to drive engagement and retention.