Discuss the Customer Perspective of Value

Discuss the Customer perspective of value;

Value is regarded as the worth of a product/service provided by a company to a targeted audience. That is, how important or beneficial a company’s product/service is to a customer. A customer’s perspective of value according to Woodruff (1997) - is simply the/a customer’s conscious judgement on a company’s product attributes; or the performance of their product/service; or even the consequences of the facilities used to achieve their customers goals. That is to say, the value of a company’s product is measured by how that product or service provides/adds value to the customer’s personality, joined with how the product adds to the customer’s public image. Meaning that, a product/service must first be of value to a company; and also should be able to add to the customer’s personality and public image.

The firm perspective of value;

        A firm’s perspective of value is the ability for their product to generate larger revenue, which will in turn yield them profit. That is to say, the role of a company is majorly to satisfy the needs of their customers in the best way they know how! Therefore, companies are always willing to give their customers these satisfaction in exchange that, they (the company) yield a larger amount of profit while satisfying the customers.

The market capitalization perspective of value;

        The market capitalization perspective has to do with a company’s strategy, investors’ expectations, yearly earnings, company’s assets, external economic situations, the political factors in a country/state and others factors, which are all influenced by the demand and supply of a product or service in the market. That is to say, the market value gives no regard to a company’s value or a customer’s value, but rather targets the amount of a company’s product/service that is demanded for and how much of that product/service the company is able to supply to the market.