"Customers buy products based on value, not based on price." Many people still hold fast to the opinion that price is the only significant factor in a customer's buying decision. There is no doubt that selecting the right price point is critical in commercializing a successful new product. However, balancing the price of a new product against the benefits the product provides our customers is even more important.
What is value? Simply put, value is the amount of benefit that a customer receives from the use of a product or service minus the price the customer is asked to pay for the product. In more quantitative terms:
We must now further define what we mean by "Benefits Received." ...