Consumer Value: The Functional Value Of Price And Value

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2.4.1 Functional Value Functional value is determined by the product itself, whether it meet the customer needs and wants and the usefulness of the products (how long the product can sustain). Customer can be affected by the functional value of the product that they prefer such as the function of the products, physical appearance, price and quality (Sheth et al., 1991). However, (Sweeney & Soutar, 2001) claim that functional value should divide into two dimensions which is price or value of money and quality or performance and should measure separately.

(Sweeney & Soutar, 2001), defined functional value for price/ value for money as the value that obtain from the products based customer perception on the cost in long term and short term. And functional value of quality or performance is defined as the product usefulness is based on customer perceived quality and the expectation toward the products whether it fulfils a customer’s desired goal. Price and quality can affect the most on customer satisfaction. This because customer perceive that high price product will have high quality or some extra
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In their studies, the found out that quality of the product was affect the most on consumer buying decision. Consumer will avoid buying the product even though the products is 100% green products because the product have low quality (Bei & Simpson, 1995). In (M. Laroche et al., 2001) research, they found out that consumer willing to spend more money on green products and did not feel troublesome to behave in an ecologically manner. They also stated that company and marketer are the important factor that will affect consumer to purchase green products because they can educate consumer on the important to purchase green product and change their lifestyle to go for eco-friendly
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