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Conclusions

Marketing is managing customer perceived value. In turn, customer perceived value is a key component of CVA®. Perceived value per unit and cost per unit—CVA®—determine the net value an organization provides society according to the perceptions of customers. CVA® has a direct relationship to the contribution earned by an organization, which in turn affects profit, cash flow, shareholder value, and share price.

Managing CVA® provides forward control over the financial performance of an organization as well as the financial performance of an economy.

The next chapter explains exactly how CVA® determines financial performance.

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