Customer Perceived Value

One of Caterpillar’s determining risk factors with the bargaining power of buyers is the size of the potential customer. Large multi-national corporations and third world countries have huge influences and larger revenue potentials than smaller organisations. This leads to some difficulty for Caterpillar in achieving solutions to meet terms with these organisations in order to take advantage of the substantial revenues they offer.

Customers make demands on the market by routinely expressing their desire for “more”. This has been called “seeking a bigger and better deal”. The demand is for more value, and more options. As they search the marketplace for its offerings, customers are often pleased to see new suppliers. They consider the new offerings, and make decisions about changing their purchasing habits.

14. What is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image?

I will then make sure I create value for each customer segment and create a pricing structure that will align price with the value delivered. On the other hand, most of the customers usually perceive that the higher the price charged, the higher the value is attached to the goods they purchase or services offered. This also becomes a cutting edge in determining the pricing strategy to use as I anticipate my clients to perceive what I offer them to be of a high value.

The key to successful pricing is to match the product with the consumer's perception of value.

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

Before i go further let me touch on a brief introduction on customer value, customer value can be defined as the difference between what a customer gets from a product and what he or

Higher value can attract more customers or increase the profit margin for the value add benefit.

Having customer value is very important. Customer value is determined by customers’ perception of what they get in exchange for what they have to give up. In order to meet the buyer’s expectations, the salesperson must be fully honest and lead the buyers at their best interests and needs.

Business Model Canvas 1. Customer segments: for whom do we aim to create value? Who are our most important customers? Segments and target. Roxanne Having a healthy lifestyle is becoming more prevalent throughout society.

As the price of the products is comparatively low, that will increase the purchasing power of the customer and they will buy in larger quantity and thus the company gains the profit. (Soni, P. (2016))

Then the report describes the theoretical aspects of the study in the literature review. This section mainly consists of brief description about different important topics about customer value marketing.

the psychological meaning of a product to customers. On the other hand, cost is related

Which company do I trust to get it right? Which company would I rather do business with?” (Mckenna 5).

For instance, McDonald's is a well-known brand for its fast paced service. For buying McDonald's food, customer will think about food content and the values against the money, effort and compare McDonald's with Burger King and Subway and select the one that gives them the greatest delivered value.