What concept refers to the total benefits a customer perceives from a product minus the costs they incur?

The concept that refers to the total benefits a customer perceives from a product minus the costs they incur is known as the value proposition. This concept encapsulates the idea that customers evaluate the value of a product based on the benefits they gain versus the costs they have to pay. A strong value proposition clearly outlines why a customer should choose one product over another by highlighting the unique benefits and advantages while minimizing perceived costs, which could include monetary expenses, time, effort, or opportunity costs.

In contrast, the product lifecycle refers to the stages a product goes through from development to decline, which is more about the overall journey of a product rather than individual customer perception. Return on investment focuses on measuring the profitability of an investment, providing a financial metric rather than an evaluation of benefits versus costs from a consumer standpoint. Market share indicates the portion of a market controlled by a particular company or product and does not directly relate to individual customer benefit perception.

Understanding the value proposition is critical in marketing as it helps businesses effectively communicate what they offer, ensuring they effectively meet customer needs and expectations.