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Costs and Benefits contributing to Customer Value

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What are some of the benefits and costs that contribute to your customer value from each of the following products: a wristwatch, a weight-loss diet, a cruise on a luxury liner, and a checking account from a bank?

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Solution Summary

Functional Benefits include the benefits provided by the functional attributes of a product whereas Emotional benefits include the feelings and emotional components.

Physical costs includes the cost of purchase of the product as well as transportation costs whereas Psychological costs include the costs associated with the mental stress in acquisition of the products.

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The costs can be in the form of physical costs and psychological costs and the benefits can be in the form of functional and emotional benefits.

Out of each of the following products, the benefits and costs can be as follows:

1. Wrist Watch

Benefits
- Watching the time
- Watch with a calculator
- Reminder Alarm in the watch
- All other features, if they are existing such as cell phone in the watch, special golden dials etc.
- Pride of owning the watch from a reputed Swiss ...

Solution provided by:
Himanshu Mahobia, MBA
Education
  • BCom, M.D.S University, Ajmer
  • MBA, M.D.S University, Ajmer
  • PhD, Suresh Gyan Vihar University, Jaipur
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