Value in marketing, also known as customer-perceived value, is the difference between a prospective customer’s evaluation of the benefits and costs of one product when compared with others.
Perceived value is the worth a product or service has in the mind of the consumer. Hence, a customer’s perceived value of a product or service determines the price he or she is willing to pay for it. Also known as value in marketing, perceived value is subjective, based on qualitative measures such as emotional, social and cultural factors.
We can lower the price, such that it will fall below their perceived value, or, we can increase their perceived value of the product, such that it crosses the price threshold.
Of the two methods above, which is preferable?
Logically, we would conclude that raising the perceived value is better than lowering the price and settling for narrower profit margins.
This is essentially, the fundamentals of marketing and advertising, and it is why companies spend billions of dollars a year to convince consumers why their product is “worth it”.
But not so fast.
In many cases raising the perceived value of a product comes at a cost, so it is not so cut and dry.
However, if we inform our decisions through research, we will see that there are quite a few ways to increase perceived value without strenuously taxing our wallets.
Customer and Market Research Department of Iran Standard & Quality Inspection have the best experience in doing so.