September 2010
Intermediate to advanced
288 pages
10h 16m
English
Content preview from Logistics and Supply Chain Management, 4th Edition
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LO G ISTICS AND CUSTOMER VALU E
29
Delivering customer value
Ultimately the success or failure of any business will be determined by the level
of customer value that it delivers in its chosen markets. Customer value can be
defined quite simply as the difference between the perceived benefits that flow
from a purchase or a relationship and the total costs incurred. Another way of
expressing the idea is:
Perceptions of benefits
Customer value =
––––––––––––––––––––––––
Total cost of ownership
‘Total cost of ownership’ rather than ‘price’ is used here because in most trans-
actions there will be costs other than the purchase price involved.
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