Customer perceived value is determined by comparing the total benefits versus total costs of a product or service. If Product A costs Rs 1000 with benefits of Rs 1500, while Product B costs Rs 800 with benefits of Rs 1600, then customers will perceive greater value in Product B since its benefits outweigh its costs more significantly. The total customer value is calculated as customer benefits minus customer costs, with benefits including economic, functional and psychological factors, and costs covering evaluation, obtaining, using and disposing.