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Customer Value Analysis

Customer Value Analysis shows how to measure the components of customer value (market-perceived quality and market-perceived price) and plots a map that shows how the quality offered by each competitor, in any given marketplace, compares to the price it charges. The map also shows the marketplace competitors and compares their quality/price positions.

The simplest customer value analysis consists of two parts:

1. First, you create a customer value profile that compares your organization’s performance with that of one or more competitors. This customer value profile itself usually has two elements:

  • A market-perceived quality profile, which:

a. Identifies what quality really is to customers in your marketplace.
b. Shows which competitors are performing best on each aspect of quality.
c. Provides an overall quality performance measures based on the definition of quality that customers actually use in making their purchase decisions.

  • A market-perceived price profile

2. A customer value map is drawn using the customer value profile (Gale, 1994).

Figure 1: Customer Value Analysis Map
* Gale, Bradley T. Managing Customer Value. The Free Press. 1994.
Alexandria Marketing Research Group, Inc. 212 1/2 W. 5th St., Joplin, MO 64801, Phone: 888.420.8884
Revision Date June 5, 2008