Costs and benefits can either be perceived and/or actual. The perceived costs and benefits are greatly influenced by the credibility of the company and the believability of the offering. It helps when customers have experience with the product or service. The trick with selling a Value Proposition is that you talk about making money (saving money), not about spending money and that you can substantiate your claim by research reports, endorsements, testimonials, user reviews, test-drives etc.
Customers use what the are using now
Customers stop using what they are using now
Customers switch to available alternatives
Customers buy into your proposition
Continue: https://sites.google.com/site/moocmodules/value-creation/value-proposition
Benefits can be created by product features, the user experience or other product/service benefits that are of value to the customer. Costs are the sacrifices your customer needs to make to enjoy your benefits. These sacrifices may consist of; mustering the confidence that everything will be al right, taking the time to understand the value proposition, learning how to use the product or service and paying the price for the product or service.
Continue: https://sites.google.com/site/moocmodules/value-creation/customer-value