In current consumptive environment, most people tend to spend billions on expensive and luxury

600 WordsApr 23, 20193 Pages
In current consumptive environment, most people tend to spend billions on expensive and luxury products either in physical store or online. However, what drives buyers continually purchase such excessive amounts of money on these goods and services? Therefore, every marketing strategy likely to increase intangible value of its products as it is important to either profit-seeking companies or non-profit organization. Intangible value itself means value that is incapable of being perceived by touched or cannot be seen. Accordingly, by adding intangible value on their products, it intends to assure customers – either individuals or organizations - what they spent on goods and services are profitable. Furthermore, price by itself is not only…show more content…
The customers will benefit from the service if they are often to purchase items from Amazon 10 until 20 times per year with an average under $25 per order, and care about to get their products fast, within less than a week. Nevertheless, people who want to enroll, have to pay for exclusively $99 per year which saves them a lot of money also Prime allows consumers to invite four other members either in their household or across country. This program asserts the previous theory, which retailer could attract users by expand their service such as offering a facility with fast shipping delivery through psychological factor. Typically, consumers do not mind spending a big amount of money as long as the product meets their needs. On the other hand, there are also contradictions of the value theory, the real essence of value revolves around the tradeoff between the benefits a customer receives from a product and the price he or she pays for it. More precisely, customer value equals to customer-perceived benefits without customer-perceived price. So, the higher the perceived benefit or the lower price of a product, the greater the likelihood that customers will choose that product. This means that, people are not solely buying a product considering a value yet also based on a low price. Since, this situation frequently happens, the marketers repeatedly fail to invest adequately to determine what the

More about In current consumptive environment, most people tend to spend billions on expensive and luxury

Open Document