Discuss the Concept of Perceived Value and Its Importance to Consumer Behaviour and Marketing. Discuss the Theory and Then Give Practical Examples of How Customers Perceive Various Brands and How This Impacts on Their Behaviour.

1161 Words Aug 26th, 2014 5 Pages
The concept of perceived value of a product is the difference between the potential customer's assessment of all the benefits and all the costs of an offering compared to the perceived alternatives. Value is the function of consumer’s evaluation thus it is subjective where the cost and benefit must be positive values. We can express as the following equation:
Value = Benefits / Cost
The consumer's perceived value of a good or service affects the price that he or she is willing to pay for it. For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their
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The steps are given below- * Identify the important facts and benefits that consumer value for selecting a product and brand * Evaluation of the quantitative importance of the different characteristics and benefits. * Evaluation of the firm's and competitors' performance on each and every characteristics and benefits. * Identifying how customer in the specific segment appraised company against major competitor on each quality. * Keep eye on customer perceived value all the time.
A person who buys any products for his own use and not for resale is called to be a consumer. A consumer is the person who makes the decision whether he wants to buy a product or not. His decision can be influenced by lot of factors such as marketing and advertisement, perceived value about the product etc. Moreover, in case of marketing any product the company needs to focus on the potential perceived value of the customer on the product because the consumer buying behavior has a great impact of on the company’s marketing strategies and decision making. So, it is very important for a company to create a marketing mix so that it can satisfy the customer.
Consumer behavior is influenced by many non-controllable elements. One of the factors affected behavior is culture. We can define culture as our main characteristics and beliefs. If I talk about a person while growing up is influenced by his