What Is Perceived Value? Different Types Of Perceived Value
Customers’ perceived value is an essential and helpful marketing terminology. Brands can use it to market their products in a way that makes their product offerings more appealing to the customers than the competitors.
Some common factors, such as reputation, pricing, product design, and availability, are detrimental to how customers perceive a product. It is one of the most essential marketing terminologies for brands to know about.
Go through this article to learn about perceived value, why it is important, and the different types of perceived value.
What Is Perceived Value?
The perceived value of a product is a marketing terminology that helps a brand stand out in the competition and appeal to the customer. It is also the process of how the customers see a business’s products or service offerings. This value can make a product excel in different areas, such as – saving the buyers money, providing better health, and providing high social standing.
This marketing tactic makes the product stand out in a market full of competitors. Another name for the perceived value of a product is customer-perceived value. Buyers always have a perception of a product’s value when they are buying something. Perceived value allows the brands to market their products based on the customer’s value.
Thanks to the customers’ perception of a product, the sellers or the businesses can sell them. No matter how good the product is, according to the business, it won’t sell unless the customers have some perception of it.
- The perceived value of a product is the value of the same in the minds of the customers. They add this value to these products based on their merits and desirability.
- The perceived value is determined based on the price the consumers are willing to pay according to their perception.
- Marketing initiatives for products involve boosting or increasing the perceived value of a product in the market.
Why Is Perceived Value Important?
Perceived value is a positive contributor to building your brand loyalty. The trade-off between perceived gain and loss is what a perceived value relates to. Here are some importance perceived value –
- The perceived value of a product can help a business set a high price for its product. If the buyers perceive that the products add value, they will be willing to pay for them. But, if they see that the product is not adding much value, they might not be willing to pay a high price.
- Most customers purchase anything based on the perceived worth of a product. Unless they see the product having the worth they are looking for, they will look for an alternative.
- The perceived value of a product has a direct relation with a product’s marketing. Customers would want to spend more if they perceive that the product they buy is good. But, if the product is not good enough, they usually want to pay a lower price.
- A product must provide the worth a buyer is willing to spend to get the product.
- Just creating a product and launching it in the market with good features and price does not make it worth spending money on. There are other marketing factors involved. Factors like branding, brand equity, product promotion, availability, customer experience, and more. All of these combine to build a good perceived value for the products.
Different Types Of Perceived Value
Here are some of the perceived values of a product that can potentially affect how the customers see the product –
A customer has a better perception of a product’s performance when the product itself looks great on the outside. One example would be – a customer would go for an app with a minimalistic UI and great service rather than an app with good features but terrible design.
Aside from having a great design and external appearance, a product can provide users with a better task value. It can help save more time, money, and energy for the users and be worth more than the competitors.
For example, an Ecommerce brand can provide better logistics and delivery services than its competitors. They can become more valuable than their competitors by making the delivery service faster and saving time.
A company can build this value in the customer’s mind through better availability than competitors. An example of the same would include better customer service or a vending machine being open 24/7.
A brand can make its products or services emotionally valuable to its users. This value involves how the product makes the customer feel. Some companies use a portion of the amount earned from their products in charity works.
They use that portion of the money to serve meals or spend for education or in the health sector. These brands use these contributions in their marketing campaigns to build emotional PV.
When the customer gets more value than the amount they are spending on a product, it elevates the product’s perceived value. Brands can leverage sales discounts and offers to use a good price as their perceived value.
Similarly, the price of two related products a customer wants to buy should complement each other. If the accessories related to a luxury item have a relatively low price, the customer might take its quality as cheap. So, it is also important for the product pricing to align relevantly.
A company’s reputation greatly affects the perceived value of its product in its customers’ eyes. If a smartphone manufacturing company has a bad reputation for selling malfunctioning phones, customers are likelier to stay away from them. A store can build a good reputation by providing efficient customer service, better organization, and cleanliness.
Brands usually follow different tactics like brand collaboration, managing brand reputation, and providing extra convenience to build a good perceived value for their products. How their products and services are marketed and seen in the open market is crucial.
This article should provide the necessary information on the value of a brand or a company. You can leave your feedback about this article in the comment box below. Thank you for reading.