Relationship Surplus is a new marketing concept that defines Value in a holistic manner – for the consumer as well as the marketer.
Relationship Surplus is built on the premise that the traditional definition/expression or derivation of Value through the equation Value = Quality/Price is incomplete.
It proposes that a more accurate definition/expression or derivation of Value can be determined only when we take into account the customer’s experience of the product or service or brand, and include this customer experience in the equation that defines Value.
Therefore, Relationship Surplus proposes that Value is both a function of Quality/Price and Consumer Experience. This definition of Value is represented in the equation:
Value = f (Quality/Price, Ԑ) [where Ԑ is customer experience]