Final answer:
The Economic Value to the Customer (EVC) in marketing is not provided in the context, but it's a formula used to set prices by assessing a product's additional value over competitors. EVC takes into account the total cost of ownership and differentiation benefits.
Step-by-step explanation:
In marketing, the formula for Economic Value to the Customer (EVC) is not explicitly provided in the information given. However, EVC generally represents the maximum price a customer is willing to pay for a product based on the perceived benefits it offers over and above a reference product. Typically, the formula for EVC is:
EVC = (Price of Reference Product) + (Value of the Differentiation Benefits) - (Cost of Owning the New Product).
This formula helps businesses determine how much more (or less) their product is worth to customers compared to a competitor's product by considering the total cost of ownership and the additional value provided by their product's unique features. It is an important strategy for setting prices in a way that captures the additional value created for customers through innovation or quality improvements.