Final answer:
The term describing the value difference that remains with the customer is Consumer Surplus, not to be confused with Producer Surplus which is profit above production costs.
Step-by-step explanation:
The term that describes the difference between the value of a product and its price that remains with the customer is consumer surplus (C). Consumer surplus is the amount of utility or satisfaction that a consumer gains from purchasing a product at a price lower than the maximum price they are willing to pay. It is measured as the difference between the maximum price a consumer is willing to pay and the actual price they pay for the product.
For example, if a consumer is willing to pay $100 for a product but only has to pay $80, the consumer surplus would be $20. This represents the additional value or benefit the consumer receives beyond what they paid for the product.
The term that describes the difference between the value of a product and its price that remains with the customer, according to Chopra and Meindl's "Supply Chain Management: Strategy, Planning, and Operation," is Consumer Surplus. This is not to be confused with Producer Surplus, which is related to the profit acquired by producers above the cost of production and is illustrated by the area under the supply curve and above the market price. Consumer Surplus is essentially the benefit or excess satisfaction consumers receive when they pay less for a product than what they were willing to pay, or perceive the value of the item to be more than the purchase price.