Consumer Value: The Functional Value Of Price And Value

assuage any guilt they might feel about consuming mass quantities of unnecessary, disposable goods by dutifully tossing these items into their recycling bins and hauling them out to the curb each week”. (Westervelt, Amy. "Can Recycling Be Bad for the Environment?" Forbes. Forbes Magazine, 25 Apr. 2012. Web. 5 Dec. 2015). So why is the reason that companies are starting to “Go Green”? Its clearly obvious that the change in America from an industrial country to a environmental country has taught big business how to market environmentalism in mass quantities of their product. The strategy of the consumption-environment mindset are increasing rapidly. If this trend of buying without thinking does not slow down, with problems like not shifting priority from consumption to being environmentally aware, things will certainly worsen. On the topic of green marketing, people often see that green marketing refers to the advertising of objects or products with environmental characteristics to them (Like the Nestle bottle, for example). Terms like “Environmentally Friendly”, “Refillable”, and “Recyclable”, are some of the things people associate with green marketing. In reality

I also agree with you in how you stated that the products price and value tie into one another especially when consumers are trying to determine what would essentially be the best option that meets their criteria of value. Likewise, it is important for companies to find significant and unique methods in which to make their product stand out and be the option of choice. Consumers want a product that is highly regarded but that also qualifies with price. They want to know that what they are paying for is of high standards and quality and worthy of the money being spent. Therefore, they look into every possible option to determine if the product meets brand loyalty and has the appeal to be different from their competitors items. You are

I agree with your post. I believe value is an essential element of determining if products are worthy of your purchase. Value entails, whether the product or service is useful and can contribute to saving you time and money. Furthermore, value can be equated to whether or not the product or service will be beneficial and advantageous to our efforts. Personally, I tie value into whether or not the product will necessitate quality, durability, and longevity. Another aspect of value ties into whether or not you are likely return to certain business avenues to obtain more of the products and services in the future. If a person knows that they are receiving quality services and items, then they are more likely to give off free advertising via word of mouth marketing and are likely to refer

The key to successful pricing is to match the product with the consumer's perception of value.

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

According to Investopedia, it is simply “the worth that a product has in the mind of the consumer,” an influential point of consideration in his or her purchasing decision. Because most people hardly know the physical cost of manufacturing goods and services, they tend to rely on this abstract awareness to gauge the product’s significance, which in turn arbitrarily determines how much they are willing to pay for it. To further understand the distinction between real value and perceived value, University of Richmond business lecturer Joe Geiger presents the comparison of the $1 and $10 bills. He states that the bills are fundamentally indistinguishable: they are the same size, printed on the same type of paper with the same type of ink using the same labor and distribution processes. It is a basic truth, however, that one bill is worth more than the other. People still pay ten dollars for the $10 bill and only one dollar for the $1 bill, even though the factors which constitute each bill’s real value are identical. Through this scenario, Geiger reveals how customers pay based more on what they understand the value of the product to be and less on what it actually is, suggesting the importance for companies to recognize and place higher regard on the consumer’s evaluation of worth rather than their

Good value products, means that the product is worth the money paid. This is the minimum expected from any business, whether it be through a products or service. This means that we expect a better quality product/service, for a higher amount of money. An example of this is you would expect a better quality TV if you paid £400; than if you paid £50. The top

Value is based on the quality of additional features (2012), or the desire of a customer and the services that are provided by the cost or price. As a result, the features of quality or patient services can be relative at a lower cost or price to other investors (Burns, Bradley, & Weiner, 2012, p. 4).

the psychological meaning of a product to customers. On the other hand, cost is related

In recent years, when the concept of sustainability is raising up, there is high percentage of customers who aware about the green products (Rather & Rajendran 2014), they do not only consider about the product or

We derive the following (using the formula, value = perceived benefits / price (cost) to the customer):

Every time buyers buy something, they expect that they will get higher or equal worth of value he is giving. Hence, the difference between the benefit/value the customer gains from purchasing and using a product and the costs of obtaining the product is known as Customer Value.

On your weekly trip to the supermarket it’s easy to find a number of products, from coffee to dishwashing soap, that flaunt their green attributes” (American Psychological Association, 2010). With such rumors of greenwashing, consumers are more confused than ever. However, some consumers know the tricks and are coming to find that there are companies whose marketing practices are legit, not exaggerated or deceiving. APA also found that, “people are willing to spend more of their hard-earned green on green products, according to a 2008 survey of 9,000 adults performed by the global business firm Boston Consulting Group” (American Psychological Association, 2010). Consumers who are willing to pay more for a product or service are assuming that they are purchasing a healthier, safer, and better quality product or service for the environment.

The major focus will be to improve the way the purposes of the products are served to the valuable customers. The value proposition would be improved at every stage of the product life cycle.

A product can be defined as goods and services that bring forth the satisfaction to human needs, wants and value. Cost satisfaction, on the other hand, is defined as the consumer estimates and the capacity of the product to satisfy another need. For one to get the value of something then there must be something that he is able to give up the opportunity cost. Different products cost differently depending on the level of satisfaction perceived.