8.2 Perceived-Value Pricing (Figures 8-8 and 8-9)

PERCEIVED PERFORMANCE INDEXES
TOTAL CUSTOMER BENEFITS 123
COST OF PURCHASE 100
CUSTOMER VALUE INDEX 23
Customer Benefits
(Voice of the Customer)
Rel
Imp
Company Performance Overall Benefits  
Product Performance
60
%
120
72
 
Service Quality
30
%
127
38
 
Brand Reputation
10
%
133
13
 
Total Customer Benefits
100
 
123
 
Product Performance
Customer Defined Product Benefits Relative Importance Competitor Product Advantage
A
B
C
Reliable Performance
50
%
0
50
0
16.67
Ease of Use
30
%
0
-30
0
-10.00
Product Life
20
%
20
20
0
13.33
%
0.00
%
0.00
 
100
 
20.00
Relative Performance Advantage  
120.00
Service Quality
Customer Defined Service Benefits Relative Importance Competitor Service Advantage
A
B
C
Parts Availability
60
%
0
60
0
20.00
Competent Service
20
%
0
0
0
0.00
Response to Problems
20
%
0
20
0
6.67
 
100
 
26.67
Relative Service Advantage  
126.67
Brand Reputation
Customer Determined Company/Brand Benefits Relative Importance Competitor Brand Advantage
A
B
C
Most Respected Brand
50
%
0
50
0
16.67
Known for Quality
50
%
0
0
50
16.67
 
100
 
33.33
Relative Brand Advantage  
133.33
Cost of Purchase
Cost of Purchase
(Voice of the Customer)
Rel
Imp
Competitor Cost Position  
A
B
C
Equipment Price
60
0
0
60
20
 
Operating Cost
30
-30
-30
0
-20
 
Maintenance Cost
10
0
0
0
0
 
Cost of Purchase
100
 
0
 

(*) Note: A positive number means a higher price or higher cost. A negative number means a lower cost when the
company is compared to a competitor

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