Triple six model of customer values 

Dr.Nikola Perovic 

Here I will present extended understanding of perceived customer value, benefits, and  costs, and define triple six model. New times require new solutions in understanding of  customer perceptions, so important in the process of re-globalization in the post-civid  world. 

Implications to practice: Marketing managers can use the triple six model to expand  influence on customers, and to improve marketing strategies and marketing mix to  better tailor needs and wants of customers. Also, customers can use this model in  purchasing behavior to make better decisions. 

Based on contemporary marketing principles (Jobber and Faxy among others) and  numerous marketing educators, including my practice in this area, following equations  are adopted:  

Equation 1: CV=PB-PC, where: 

CV stands for perceived customer value 

PB stands for perceived benefits 

PC stands for perceived costs 

Equation 2: PB=FB+LB+SB+PsB+TB+EB, where: 

FB stands for perceived functional benefit (product or service utility) LB stands for perceived logistic benefit (convenience) 

SB stands for perceived social benefit (e.g. image, relationships) 

PsB stand for perceived psychological benefits (positive emotions) 

TB stands for time benefits (short time,time saved) 

EB stands for perceived environmental benefits (e.g. improved health) 

Equation 3: PC=MC+LC+SC+PsC+TC+EC, where: 

MC stands for perceived monetary cost (price) 

LC stands for perceived logistic cost (long transport) 

SC stands for perceived social costs (e.g. social life degradation) 

PsC stand for perceived psychological costs(negative emotions) 

TC stands for time costs (long time for certain transaction, time wasted) EC stands for perceived environmental costs (e.g. pollution) 

Equation 4: CV=VM+LV+SV+PV+TV+EV, where 

VM stands for value for money 

LV stands for logistical value 

SV stands for social value 

PsV stands for psychological value 

TV stands for time value, and 

EV stands for health-environmental value.

Following tow tables are connected: 

Table 1: Triple 6 model of customer value 

As per the table above, each customer value is a difference between perceived benefits and  perceived costs at the individual level (not collective, or communitarian). In order to understand  the table better, each dimension has been highlighted for each customer value respectively. For  example, social value that can be understood as trust and social quality can be achieved if social  benefits combining from more relationships or better image are larger that social costs, such as a  social life degradation. Since perceptions, both regarding benefits and costs, are purely  subjective, it has to be defined a score (e.g. 0-5) which shall be determinant for each benefit and  cost from a customer point of view. If the difference between perceived benefits and perceived  score in every row is positive, there is a customer perceived value from certain transaction. In the  table below a hypothetical example of a customer situation has been provided (very common in  cover and post-civid world, and hybrid work settings) 

Table 2: Hypothetical example of a customer moving to another neighborhood

Total CV:9 

Higher score for both perceived benefits or perceived costs means that a customer has believed  that benefits and costs were higher than in her/his previous situation.  

Therefore, based on the table 2 the customer has achieved a perceived value after  performing transaction of moving to another, better, neighborhood. We can use this  approach in order to compare any customer purchasing decision to find out if a customer  gained value or not, which is key in understating customer satisfaction using customer  value equations.  

These equations include sustainability triangle or so called 3P model (People, Planet, Profit). At  the same time, they are specific as trigger individual level of each customer, as explained earlier. 

Practical implications of customer value equations are: 

Consumer value is systematically summarized in a marketing metric approach, which is  contemporary issue in the field of marketing concept 

Equations combine current knowledge in explanation of consumer value 

Two more costs have been added compared to the model of Jober and Faxy  

Customer value is more broadly defined and will improve global need for a comprehensive  approach on this concept beyond m