1) Customer Perceptions: Customer's preferences are influenced by perceptions and in turn perceptions are influenced by attributes of a service or product in terms of value, desire, previous experience, position in the marketplace, need and self-image.
2) Reference values of services: This may be very vaguely defined and sometimes may be plain facts. To find our reference value of services or products, an organization needs to create a on-going dialog with its customers that feeds data into a knowledge base that teaches the producer or creator of the service or the product valuable lessons learnt, what brings value, how value can be added and how best take advantage of preferences and perceptions the customer generates.
3) Finally the economic value of a service to a customer is the sum of the customer's reference value and the net difference in value the customer associates with the service. The positive difference comes from the service's utility and warranty. Negative difference comes from losses suffered by the customer as a result of utilizing the service.