Perceived value is the subjective worth that a customer assigns to a product or service based on their own personal evaluation. It is a key factor in determining whether a customer will make a purchase or not, as it influences their perceived return on investment.
There are several ways in which perceived value can be increased. One is by offering a product or service that meets or exceeds the customer’s expectations in terms of quality, features, and performance. Another is by providing additional value through complementary products or services, such as warranties, maintenance plans, or customer support.
In addition, the way in which a product or service is marketed and positioned can also impact perceived value. For example, highlighting the unique features or benefits of a product or service, or presenting it as a premium offering, can increase its perceived value in the eyes of the customer.
It is important for businesses to consider perceived value in their pricing strategies, as it can impact the demand for their products or services. By understanding the perceived value of their offerings, businesses can better determine the right price point to maximize profitability and customer satisfaction.
Overall, perceived value is a crucial aspect of the customer experience and can significantly influence a customer’s decision to make a purchase. By focusing on increasing perceived value, businesses can increase customer loyalty, repeat business, and overall profitability. The following are illustrative examples of perceived value.
The things that a customer can accomplish with your product or service. For example, an accounting service that removes a customer’s administrative burden related to taxes.
The way that functions are implemented such as an accounting service that gives a small business a monthly report that estimates quarterly and annual taxes.
The overall visual impact of a product or service. For example, a mobile device that looks sturdy and stylish.
The ease with which the product or service is used such as a mobile device that feels intuitive.
The experience of unpackaging a product. For example, a cardboard box with no tape that is easy to pop open as opposed to thick plastic that requires heavy duty scissors to open.
Attention to detail and good taste in design and operations. For example, a table setting at a restaurant that is perfectly laid out in ornate detail.
The way that a customer feels about a brand such as a fashion brand that is viewed as luxurious and high status.
In an automated world, things that are produced by hand may be perceived as higher value.
Attention from a person, particular someone who is skilled at customer service. For example, a waiter who remembers details about regulars such as their usual order.
Experiences such as the impression you get as you walk into a hotel lobby that features interesting architecture, interiors and social elements.
The impression that an item is unique and hard to find. For example, a toy company that produces a large number of variations in limited supply.