Consumer surplus

It is the difference between the perceived value of a product and the actual price paid by the customers. However, the perceived value of the same product varies among customers, due to varying consumer preferences, the purposes it serves, and the situation. The perceived value could be increased by adding ideas to the product. Even it could be done without increasing the cost. Hence, the producer succeeds to sell the improved product at the same price to a larger number of customers. As a result, ideas contribute to increasing Consumer surplus, while increasing revenue and profit for the producer.