Here, we come to know about the total customer value that helps in the business growth. Customers compare brands and goods based on characteristics, costs, and sources before selecting one.
Top 6 Characteristics of Customer Value
Customers’ values are typical because they show distinctive characteristics of customer value.
- Vary Across Customers
Customer satisfaction is the end state value, whereas product value is the instrumental value through which customers reach the end state value. These characteristics of customer values are instrumental in fulfilling customer needs and wants. A customer will find the instrumental value of a product when he can establish the usefulness of the product in achieving the desired value from the exchange.
Market values are dynamic because they change over a period of time. As customers change their life cycle and availability of financial resources, the need structure also changes. A product needs to satisfy the basic reason for existence. If it does not deliver the universal value, other values will not be well perceived by the customers.
If the universal value is not found in the product, customers will not care for the next levels of value. Hence, value is hierarchical.
A market segment, presumed to be homogeneous, is often found to consist of customers whose value expectations match the universal level. It is the characteristics of customer value. In a fragmented and heterogeneous market, differences in computer expectations of universal value may exist, making other values complex and diverse.
The existence of one value is not detrimental to another value. One value enhances the utility of another value. Performance value, service value, and price value are at an optimum level when there is no trade-off. When social and emotional value, convenience and personalisation, and credit financing value are not in the trade-off, the personal value is found to be optimum.
6. Vary Across Customers
Values are specific to the role of the customer. So, the roles differ among customers as buyers, payers, and users of the product or service. It is one of the main characteristics of customer value. Consumers may change their value priorities depending on the kind of role they play in the exchange process.
A product or service is more versatile if it can generate a larger value for various customers and satisfy their different needs.
Major 5 Classification of Customer Values
The classification of customer values is as follows.
- Functional or Utilitarian Value
- Social Value
- Emotional Value
- Epistemic Value
- Conditional Value
1. Functional Value
Functional value is one of the main classification of customer value. It is a physical performance utility received from the product’s attributes. It is associated with economic utility theory, popularly expressed in terms of rational economic reason.
2. Social Value
Social value of a product is perceived utility acquired because of associations between one or more specific social groups and consumer choice. Products involving highly visible products and services to be socially shared. Although, it is the classification of customer value.
3. Emotional Value
A choice acquires emotional value when associated with specific feelings or when it triggers or sustains them. Products and services are frequently associated with emotional responses.
4. Epistemic Value
The epistemic value of choice is the classification of customer value. It is the perceived utility that comes from the choice’s ability to foster curiosity, provide novelty and satisfy a desire for knowledge. New purchases and consumption experiences offer epistemic value.
5. Conditional Value
The conditional value of choice is the perceived utility acquired by choice as an outcome of a particular situation or circumstance facing the customer. This value is served best when we associate the brand with usage situations. It is the major and impactful classification of customer values.