Perceived Value
Candlefocus EditorIn essence, it is the intangible image or perception that a customer has of a good or service that influences his/her buying decision. It focuses on the perceived differences between the product or service and its competitors and is used to determine how much the customer is likely to pay.
Perceived value is heavily influenced by marketing, product design, and customer service. Marketers can leverage these three elements to create an effective product or service that takes into account the customer’s values, beliefs, and needs.
For example, a company selling TVs must shape its marketing and message to emphasize what makes its TVs unique and desirable, including its design, picture quality, access to streaming services, and other features. The same goes for a service - if the company is selling web hosting, it must emphasize the speed, reliability, and customer support it provides.
The goal of creating perceived value is to exceed the customer’s expectations. Companies must be able to differentiate their products or services from the competition and offer something unique to build consumer perception. Product experience, personalization and value-added services are just some of the ways to create and increase perceived value for products and services.
Overall, perceived value is a critical factor in consumer decision-making. It plays an important role in determining the success of a product or service. Companies must ensure that they focus on creating and communicating the perceived value of their product or service in order to succeed in the market.