Perceived Customer Value
Perceived customer value is a concept that points out that success of a product is largely based on whether customers believe it can satisfy their needs. This phrase emphasizes that when a company develops its brand and markets its products, customers ultimately determine how to interpret and react to marketing messages.
To better understand customer perceived value, businesses need to know about value proposition. A value proposition is a comparison of the benefits offered by a company’s product to its customers relative to the price it asks customers to pay. Companies can generally influence the value proposition in one of two ways. First, they can use long-term brand building to emphasize key traits of the brand and products. Second, they can offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product’s merits exceedingly justify its price.
A main challenge in instilling a value perception, and perceived value, with customers exists when your brand or product does not stand out relative to competition. That is where everybody in a company comes in. Everybody in a company or organization has a direct affect on the customers perceived value of its product. That goes form the moment someone answers the phone till the time the package is received. And everything in between.
Let’s take Starbucks for example, Does Starbucks have the best coffee? Many surveys prove that customers prefer the taste to Dunkin Doughnuts coffee, and the coffee at Dunkin costs much less. So why do people continue to purchase what is basically second rate, higher cost coffee? The answer is perceived value. The perceived value obtained from marketing efforts and the personal experience each time the customer enters a Starbucks.
So if a company can grow when they charge twice as much for an inferior product… Think how much a company can grow charging a competitive price for a superior product. Growth is endless. It just depends on how each person in the organization makes the customer feel…