Structure of customer value

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Benefits that create value for customers can be divided into two categories, e.g., core benefits and add-on benefits. The core benefit is the fundamental need that the customer satisfies when they buy the product, which defines the level of quality and performance and their before- and after-sales service expectations. Otherwise, add-on benefit is attributes of a product or service that are beyond the core benefit. Customers may use these additional benefits to choose a product that is different and superior to the other. Moreover, total customer cost is the bundle of costs customers expect to pay in researching, evaluating, buying, obtaining, maintaining, and deposing a given product or service. It can be divided into three categories, e.g., purchase costs, use costs, and post-use costs (“Customer cost,” 2020). Purchase costs include the cost of researching, evaluating, buying, and obtaining a product or service. Use costs are the cost occurs during the usage of a product or service and include the costs of switching to a new product. Post-use costs include the collection, storage, and disposal.