The cost of the alternative is basically how value is defined in economic theory.  Similar to the term &quot;opportunity cost&quot;.<p>There doesn&#x27;t seem to be a better way to define value.  You could say it&#x27;s the subjective intrinsic value customer places on the item&#x2F;service. But if you try to quantify that, you&#x27;re left looking at the value of the things he&#x27;s willing to give up to obtain it.