Customers derive value and satisfaction from the product in their own perceived ways. Customer value is essentially what the product does for the customer so as to meet the customer's expectations and perceptions about the product.
The following image shows the values delivered to the 3 classes of consumers, customers and the retailers.
Customer Perceived Value (CPV) is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Thus, it is the anticipated benefit from a consumer's perspective of a product or service keeping in mind the price that the customer had to incur.
Total customer benefit is the perceived value of the economic, functional and psychological benefits from the product, service, people and image.
Total customer cost is the perceived cost incurred by the customer in terms of a cumulative of the monetary and non-monetary costs(time and energy) components to evaluate, obtain, use and dispose of the given product.
The CPV model has 4 basic benefits and their corresponding costs. Out of those, the services and personnel are not applicable to this product. Reason being that the Ambi Pur car freshener does not come with any service of maintains, warranty, repair, delivery or training. Also, personnel or the employee benefits if any are applicable to the broader horizon of the P&G brand and not to the product per say. The other two product benefit and the image benefit along with their corresponding monetary and psychological costs are detailed below:
The value is determined by the product attributes and the benefits and costs associated with it.
Ambi Pur car freshener has product benefit such as the long lasting fragrance up to 45 days. It delivers fresh and revitalizing smell. It helps to do away with any prevailing odour. It keeps the car atmosphere pleasant even during moist and damp weather conditions. It cheers the mood of the driver and the passengers as well. Thus, it answers the question- What problem will this product solve? The product MRP cost is affordable enough. The long lasting feature and the availability of the refill pack of the liquid diffuser system makes it further reasonable. Also, the P&G brand image associated with this product facilitates the customer to rely on it. Moreover, the brand loyalty helps in the image benefit too; and thus the psychological cost of the customer while buying significantly reduced.
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