What is the EVC? What are the 3 complications to the EVC?

What is the EVC?

Expected value to the customer is the maximum a customer should be willing to pay for your product. It is the purchase price of the next best alternative +/- the value difference between the next best alt and your product. (see chart)



What are the 3 complications to the EVC?



1. the incentive
2. identifying value
3. tradeoffs


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