Customer value

Customer value

Customer value can be defined as what customer perceives to be worth from products and services against other possible alternatives. The value a customer derives from a product is determined by what they feel or the benefit they get over what they have paid or the monetary value (Christopher, 2016). The total cost of ownership (TCO), on the other hand, is a financial cost of all costs that are involved as inputs in the supply chain process. The concept of supply chain management involves managing inventory, supply chain process, and value chain management. Thus, all the direct, indirect costs and any other costs incurred throughout the supply chain till the final point of the project are termed as the total cost of ownership. To understand the process, its components, and the impact will help understand the customer values, which are measured by the perceived customer benefits and total customer cost. TCO helps in evaluating costs that sometimes omitted during upfront pricing, such as technology cost (Wouters and Kirchberger, 2015)