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2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 1714 Selling the Value Advantage ? Who is the customer? ? Must measure value from the customer’s perspective ? Market segmentation based on value ? Value is a moving target ? Changing role of the sales force Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 1710 Total Cost Analysis Purchase Price plus ? Transportation costs ? Inventory turns ? Terms of sale ? Ordering costs ? Receiving costs ? _______________ ? _______________ ? _______________ Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 176 Customer Value Added Provide products and services to customers that are a better value than those they could purchase from petitive panies in similar markets Customer Satisfaction Market Share Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 172 Options for Measuring Value 1. Customer satisfaction 2. Customer valueadded (CVA) 3. Total cost analysis 4. Profitability analysis (includes considerations) 5. Strategic profit model 6. Shareholder value Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. McGrawHill/Irwin 173 Components of Customer Value Product attributes Service attributes Transaction cost Expected customer value Perceived benefit Perceived sacrifice Risk Life cycle cost Source: Ea