Customer Perceived Value (CPV) is the customer’s subjective assessment of the difference between all benefits and all costs of a given market offering compared to competing offerings. It is the guiding principle for consumer decision-making.
Benefits include functional, emotional, image, and service advantages, while costs include monetary value, but also time, effort, and psychological risk. Marketers seek to increase CPV by increasing total benefits (through quality or service) and reducing total costs (through price or convenience).
