Value equity

It is the customer’s objective assessment of the utility of a product or service based on the perceptions of its benefits relative to its costs. The components of value equity are quality, price, and convenience. Each industry has to define the specific factors underlying each component in order to find programs to improve value equity. For example, an airline passenger may define quality as seat width; a hotel guest might define quality as room size. Value equity makes biggest contribution to customer equity. Value equity especially enhances customer equity in business markets.