Perceived Value - Explained
What is Perceived Value?
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Table of ContentsWhat is Perceived Value?How does Perceived Value Work?Advantages of Perceived Utility ValueSpecial Considerations of Perceived ValueAcademic Research on Perceived Value
What is Perceived Value?
A perceived value refers to the perspective or opinion of a customer towards a product or service which is often influenced by how the goods and services met the needs and expectations of the customer. Perceived value is otherwise called customer-perceived value, it is how a customer evaluates or rates a product or service when compared to other similar products. Driven out of a customers perception of a product, perceived value is important to marketing professionals as it helps them know the right strategies in marketing their products and services. Here are some important points you should know about perceived value;
- Perceived value refers to a customers opinion or evaluation of a product or service.
- The evaluation is based on how the goods or services met the needs and expectations of the customer and its costs relative to other similar goods.
- The quality and desirability of a product are crucial.
- The actual attribute of a product or service is not an important factor under perceived value.
- Marketers of a specific product attempt to influence customers perceive value of the product by telling them the uniqueness of the product over its peers.
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How does Perceived Value Work?
The desirability of a product, quality, how well it meets the expectations of customers and its price in relation to other similar products are important factors in perceived value. Customers are quick to give their opinion of a product or service based on how well it has satisfied them and its cost. Marketers play on customers perceived value by attempting to make their products have better-perceived values with customers. In certain cases, customers give their perceptions o opinions of a product or service based on its price, rather than its attributes and qualities. Diverse factors trigger perceived value for different customers and it is the duty of marketing professionals to find how to enhance the perceived value of their products.
Advantages of Perceived Utility Value
The major advantage of the perceived value to marketing professionals is that it helps them enhance the perceived value of their products by showing how their products are superior to their peers. To show that a product is superior to other products, a marketer needs to identify the unique attributes, extra benefits and exceptional desirability of their products that will influence customers perceived value of the products. When creating a marketing campaign for products, companies seet to create these categories of utilities;
- Form utility: how appealing a product is to customers, at first sight, It entails being creative about the design of the product to achieve aesthetic appeal.
- Time Utility: How fast can customers access a product or service delivery?
- Place utility: How convenient it is for customers to purchase the products and access the service.
- Task utility: The extra value that a product or service has that saves a buyer lots of stress.
- Possession utility: This is how easy customers find it to possess a product in terms of where it can be bought and how orders and delivery can be made.
Special Considerations of Perceived Value
A company's brand also plays a vital role in how customers perceive or evaluate their products. For instance, a renowned and well-favored brand has the tendency of appealing more to customers over an unpopular brand. The desirability of a product is another factor that affects perceived value. For instance, luxury goods have good perceived value and easily attract customers. The sense of ownership or feeling of prestige that customers get from luxury goods is an important consideration for perceived value. For instance, popular brands such as a Rolex watch, Toyota Car, Apple phone or watch have good perceived value, not because of the function they serve but the luxurious feeling attached to them.
- What is a Product?
- What Types of Product are There?
- Durable Goods
- How are Goods Different from Services?
- What Components do Products Include?
- What is Product Quality?
- Perceived Value of a Product
- Why is Product Packaging Important?
- White Label Product
- What is Product Warranty?
- Innovation Adoption Curve
- Product Life Cycle
Academic Research on Perceived Value