Total acquisition cost

What is Total Acquisition Cost?

Total acquisition cost is the total cost that may apply to either a customer or an organization.

To a customer, total acquisition cost may include intrinsic costs (such as price) and extrinsic costs (such as the time it takes to make the purchase and the cost of petrol it requires to get to and from the store).

To an organization, total acquisition cost means the cost of acquiring the customer, including the costs of marketing, the costs of taking reservations, and the costs of actually serving the guest.

So the perceived product or service value must be equal to or exceed the total acquisition cost to produce total value to the consumer.