Customer Perceived Value

is the difference between a prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Total customer value is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.

Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychic costs.

Loyalty is defined as

"a deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behaviour."

The key to generating high customer loyalty is to deliver high customer value.

Value proposition is a statement about the resulting experience customers will gain from the company's market offering and from their relationship with the supplier. The brand must represent a promise about the total experience customers can expect. Whether the promise is kept depends on the company's ability to manage its value-delivery system.

Value-delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Marketers can increase the value of the customer offering by some combination of
raising functional or emotional benefits and or reducing one or more of the
various types of costs.