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Economic Value to Customer
Economic Value to Customer = EVCx = [LifeCycle costs of a competitor's product in relation to a home firm] - [Start-up Costs for the home firm's product] - [Post Purchase Costs for the home firm's product] + [Incremental Value of the home firm's product].
The total demand consists of: 1. New owner demand and 2.A replacement demand The replacement demand tends to grow with the in the total stock with the consumers. Once a pe
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