How is customer-perceived value defined in marketing?

Customer-perceived value is defined as the difference between the benefits a customer receives from a product or service and the costs incurred to obtain it. This concept emphasizes that value is not solely about the price of a product, but rather encompasses the overall experience and satisfaction a customer derives. When customers assess the value, they weigh the advantages, such as quality, performance, and emotional benefits, against the monetary and non-monetary costs, including price, time, effort, and potential risks associated with the purchase.

This understanding is crucial in marketing as it helps businesses tailor their offerings to maximize perceived value. By enhancing benefits or minimizing costs, they can influence customer decisions and foster loyalty.

In contrast, other concepts mentioned in the options focus on distinct aspects of marketing that do not encapsulate the holistic view of value perception. For instance, the total cost of production pertains to the expenses involved in creating a product, while the quality of customer service addresses post-purchase experiences—not the perceived value itself. Market share relates to the percentage of total sales within a market and does not directly indicate how customers perceive the value they receive from products or services.