Customer Value

Customer value forms the heart of any product and is highly worked on to distinguish products.  With more choices at their disposable, it is very easy for a consumer to shift from Product A to Product B. So in times like these, when the customer is spoilt for choice, what appeals a particular product to the customer is what requirements are to be understood very clearly. Their final call is made on whichever product delivers the most perceived value.

Customer perceived value is defined is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Total Customer Benefit

Product benefit: It is a drink best served with fast food, hard drinks. Easily available. Has a sweet taste, less fizzy.

Service benefit: Pepsi is available, affordable.

Image benefit: it appeals to the youth, thus adding a cool factor to it. Also, Pepsi’s brand name attracts customers to buy the product. Any celebrity associated with a brand like Pepsi further adds to how influencing the brand is on him/her

Total Customer Cost

Monetary cost: Pepsi’s 200 ml bottle – Rs. 8, affordable

Time Cost: Due to its easy availability, minimal time is spent on getting the product from either a store or a restaurant

Energy cost: Due to its easy availability, minimal energy is spent on getting the product from a store or a restaurant

Psychological cost: Pepsi has the cool factor attached to it. It is very youthful in its appeal. Also, as a brand, Pepsi has evolved over the years. Any celebrity, sports star associated with Pepsi entices consumers, especially the young audience, more towards it.