Concept

Economics is the mother of Marketing. The seed for Customer Value was sown when Jules Dupuit & Alfred Marshall first propounded their theory of ‘Consumer Surplus’ in 1844. Our contemporary take on the concept is the Relationship SurplusSM.

A metric still in the crucible, but pregnant with immense potential is what we see in Relationship SurplusSM, which attempts to break the clutter of existing concepts that are either very qualitative or quantitative in their origins.

Relationship SurplusSM is built on the premise that the traditional definition, expression, or derivation of Customer Value through the equation
Value = Quality/Price is incomplete.

To our mind, authentic Value is a function of Quality, Price, and Customer Experience. This definition of Value is represented in the equation:
Value = Quality/Price + Є [where Є is customer experience].

Economics is the mother of Marketing. The seed for Customer Value was sown when Jules Dupuit & Alfred Marshall first propounded their theory of ‘Consumer Surplus’ in 1844. Our contemporary take on the concept is the Relationship SurplusSM.

Relationship Surplus the concept; the concept explained; the concept’s interpretations; the concept’s leading-edge position vis-à-vis  other marketing/business models.

Thought Leadership: Relationship Surplus

Relationship Surplus

Value – the traditional view

Adding the experience component

A philosophical take on quality

Reverse logic

The value-measurement dilemma

Value is determined by the relationship

Deriving value from utility

The power of exchange

The price factor

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