Perceived value refers to the subjective judgement or opinion formed by customers about the benefits of a product or service relative to its cost or price.
- Depends more on consumer perspective than objective quality or features
- Shaped by brand image, peer recommendations, promotions, reviews
- Vital even for commodity goods where performance is equal
Companies aim to maximize perceived value through advertising, messaging, and developing emotional connections. Comparative or contextual marketing highlights savings versus competitors.
Proper positioning ensures price aligns with worth impressions. Overpricing risks dissatisfaction while underpricing undermines equity.
Understanding factors driving perceived value aids pricing, profitability, and loyalty. Monitoring shifts guides strategic adjustments like upgraded offerings.
Overall, while challenging to measure, perceived value critically determines price acceptance and purchasing behavior over rational attributes alone.