Marketing Strategies For The Marketing Strategy

1453 Words Aug 20th, 2015 6 Pages
Every product has some worth or cost in the mind of the ultimate customer. This is called perceived value of that product. It is the customer’s perceived value of a certain product which sets the price, which a customer is happily willing to pay for it (Mack, 2012).
Most of the time, the true cost of production for the particular products and services are not known to the customers. Instead, they feel the worth of a product from their sense of feeling and decide to buy it even on higher price. Therefore producers chase such marketing strategies which help them to set huge perceived value for their product or service and in this way they are able to get high prices for their products in the market (Sweeney et al., 1999). Perceived value is mostly used by companies who manufacture perfumes, for example. They associate their perfumes with a glamorous and famous celebrity of the time. In this way their perfumes successfully gain a perception and mystique of luxury. On contrary, they may have to spend lot of money on advertisement to set a strong image for the perfume. In most of the cases, consumers are not aware that the costs of production for perfumes are very low but they have a mind-set that as this perfume is associated with a famous celebrity therefore the perceived value of that perfume is far greater than the cost of production of that perfume.
Buying behaviour of consumer is dramatically affected by the value which consumer has perceived about the…
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