I want to know what is the difference between a query and a view in terms of performance. And if a view is costly, what else besides a query could I do to improve performance?
If you mean network performance then working from a local cache (as with ADO.Net DataSets) would reduce network traffic- but could cause problems with locking. Just a thought.
If they do exactly the same thing a view might be slightly faster on first execution as the database server will have a precompiled execution plan for it. Depends on your server though.
Empasis on might and slightly...
A view is still a query, it just abstracts certain parts of it so that your queries can be simplified (if they do similar things) and to maximize reuse.
Views promote code reuse and can abstract away database complexity to give a more coherent 'business' model of data. However they are not nearly as tunable. You may find yourself in a position where you need to provide join hints or other low level optimisations and many DBA's that i have worked with do not like them being applied to views as they may then be reused across many queries, the opinion being that these types of hints should be employed as sparingly as possible. I like using views myself.
The answer is that views and ad-hoc queries, in the simple case, are nearly identical. So much so that when you program with a view, you should think of it as though the text of the view definition were being cut and pasted into your parent query.
In SQL Server I believe that the performance difference between views and queries is negligible. What I would recommend doing to improve performance is to create another table that holds the results of the view. You could perhaps create a staging table where new data is held and then a stored procedure can be run at some interval that populates the working table with the new information. A trigger might be good for this purpose. Depending on the requirements of your application this design may or may not be suitable. If you are working with near real-time data, this approach will lead to concurrency issues...
One other thing to look into, is to make absolutely sure that the base tables you are using to construct your view are indexed correctly, and that the query itself is optimized. Finally, I believe it is possible in SQL Server enterprise to create indexed views although I have not used them before.
A view is barely more expensive to the computer than writing out the query longhand. A view can save the programmer/user a lot of time writing the same query out time after time, and getting it wrong, and so on. The view may also be the only way to access the data if views are also used to enforce authorization (access control) on the underlying tables.
If the query does not perform well, you need to review how the query is formed, and whether the tables all have the appropriate indexes on them. If your system needs accurate statistics for the optimizer to perform well, have you updated those statistics sufficiently recently?
Once upon a long time ago, I came across a system where a query generator had created one query that listed seventeen tables in a single FROM clause, including several LEFT OUTER JOIN of a table with itself. And, in fact, closer scrutiny revealed that several of the 'tables' were in fact multi-table views, and some of these also involved self outer joins, and were themselves involved in self outer joins of the view. To say "ghastly" is an understatement. There was a lot of cleanup possible to improve the performance of that query - eliminating unnecessary outer joins, self joins, and so on. (It actually pre-dated the explicit join notation of SQL-92 - I said a long time ago - so the outer join syntax was DBMS-specific.)
I can't speak for all databases, but in SQL Server you cannot index views unless you have an Enterprise version. An unindexed view can be significantly poorer in terms of performance than a query especially if you are writing a query against it to add some where conditions. Indexed views generally can perform fairly well. An indexed view can also be against multiple fields which are in differnt tables and that may imporve performance over the ad hoc query. (It may not too, in performance tuning, you must always test against your particular circumstances.)
One point against views is that they do not allow for run-time selection of where criteria. So often you end up with both a view and a query.
Views can be more easily maintained (Just add that new table in a join and everything accessing financial reports has it available) but they are much more difficult to performance tune. This is in part because they tend to be over generalized and thus are slower than their counterparts which only return the minimum necessary. And yes as Jonathan said, you can far too easily get into joining together views for a report into a mess which joins to the same large tables many more times than need be and is very slow.
Two places where views shine though is: Making sure that complex relationships are always correctly described. This is one reason why report writers tend to favor them. Limiting access to a subset of records
There are also limitations on the type of queries that can be done for a view vice an ad hoc query or a stored proc. For instance you can't use an if statement (or other procedural type code such as looping) or as noted above you cannot provide run-time values for the where criteria.