Date: June 12, 2002
Page 21
Customers’ buy on value….
•Most customers buy on value over some relevant range
•VALUE = QUALITY ¸ PRICE
Price
Text Box: Perceived Quality
Perceived Quality
Prevailing Market Value
Vendor “A”
Vendor “B”
Vendor “C”
Source: Gale, Bradley T., Managing Customer Value: Creating Quality That Customers Can See, Free Press, April 1994