Customers will always base their purchasing decisions on the perceived value of the goods or services you provide, regardless of the type of business you run.
It is essential to know how to show the perceived worth of your business in the best way possible. Remember that you are just one of hundreds or even thousands of companies offering more or less the same product or service, so a good perceived worth will help you stand out from your competitors.
For example, you would probably research before booking a trip, buying a gift, or going to a restaurant. You look at reviews of that restaurant on trip review sites, Amazon, or Yelp. You think about what the best choices are.
You do all these things because you want to get an “idea” of what these services or products can do for you in exchange for your money and time. In other words, you’re trying to figure out what a business is worth.
In this blog, we will discuss what perceived value is, why it is important, and the types of it with examples. But first, we will learn what it is.
What is perceived value?
Perceived value is how a customer sees the benefits and value of a product. This value could be anything, like money saved, better health, or higher social standing. Businesses use many ways to show customers that their product is better than the competition. It is usually done to make the product stand out from similar ones.
It is also called customer-perceived value and is important for businesses to consider when marketing their products. People buy things based on how valuable they think they are.
It makes people want to buy a product that fits their needs and wants. Even if the people who make a product think it’s great, it won’t sell if customers don’t think it’s valuable enough.
Importance of perceived value
This value is important for your organization in many ways. Such as:
- Perceived value is significant in marketing. People who think a product is worth it are willing to pay more. They probably won’t buy or will only pay a low price if they feel the product isn’t worth it.
- Customers purchase goods based on perceived worth. It should be worth at least what the customer spends and does to get it. If it’s lower, they’ll look for more satisfying products elsewhere.
- This idea is a crucial part of marketing. People who think of a good product are willing to pay more. They won’t buy or will only pay a low price if they don’t.
- It should be worth at least what the customer spends and does to get it. If it’s lower, they’ll look for more satisfying products elsewhere.
- Satisfaction doesn’t just depend on a product’s price, features, and performance. But it also depends on other parts of the marketing mix, like branding, promotion, and product availability. Keeping customers happy also requires good customer relationship management. It helps the customer feel emotionally connected to the company and its products.
Types of perceived value
Here are some types of perceived value that could affect how a customer sees a product:
The design or look of a product or service is its form. Customers who care about an item or service will think it’s worth more if it looks better.
For example, some people may be more likely to buy an app or program with a simple interface and clean design than one that may be more useful but looks terrible.
Increasing the task value of a product or service means making it better at saving people time, money, or energy. It can include services that take the place of doing housework or running errands.
One example of a product with high task value is a grocery delivery service. People don’t have to spend as much time and energy on their daily tasks when they use house cleaners, subscription services, and automated deliveries.
When we talk about availability, we’re talking about how quickly and simply a customer can select your goods. If a grocery store is open throughout the night, this may raise the value of its availability.
More examples of availability: items with a high availability value are vending machines, customer service open 24 hours a day, and digital or online products.
Emotional value is how the product or service makes the customer feel. Marketing professionals may also give some of their profits to charity or organize fund-raising events to show that they are doing the right thing and to make the customer feel emotionally connected to the brand.
For example, marketing campaigns can link products to holidays or events that are important to people or make them a part of family traditions.
Pricing is another thing that can change how a customer sees the value of a product or service. It is true for expensive and cheap items because the price can show the quality to the buyer.
For example, if a customer wants a purse to go with a luxury dress, they may be less likely to buy a handbag priced differently than the dress. If the bag is on sale or the price doesn’t match the dress, the customer might think it’s not very good.
Discounts and sales are great ways to create affordable prices that customers will like. If a different customer sees the same handbag on sale, they might think they’re getting a great deal. On the other hand, some people may be more likely to buy something if the price makes it seem like they’re getting more for their money.
The reputation of a company or brand can also affect how customers see its value. All the other types of perceived value can affect a company’s reputation, policies, operations, and how they treat its employees.
For example, a store’s reputation may depend on how clean and organized it is, while an online vendor’s reputation may be improved by offering secure check-out and faster connection speeds.
Your marketing plan should include an analysis and measurement of customer perceived value. After all, people who work in marketing can use it to predict or change how customers see a product. We learned about perceived value, importance, and types from the above. We gave some examples as well.
Market and audience research is essential for brands that want to make their products more valuable to specific groups of customers. Not all utility customers will respond the same way to the same services.
By putting all your experience data on QuestionPro research, you can speed up the time it takes to make a new product. You can also find gaps in the market and get new products out there quickly.