Price: Understanding and Capturing Customer Value

Keywords: Customer Value, Customer Satisfaction, Customer Loyalty

Definition of Price

In a narrower sense, price is the amount of

money demanded for a product or service.

In a broader sense, price is the sum of all

the values that customers give up in order

to benefit from having or using a product or service. In the past, price was the most

important factor influencing a buyer's

buying decision. In recent decades, the

importance of non-price factors has

increased. However, price is still one of the