A product's economic value to the customer is the variable cost of the product plus the value of what differentiates the product from that alternative.

Question

Quizplus · Accepted Answer

Economic value to the customer (EVC) is the maximum amount a customer is willing to pay for a product, based on the product's benefits and the comparison to the cost and benefits of alternatives, not just the variable cost plus differentiation value.

A Product's Economic Value to the Customer Is the Variable