How does perceived value affect purchasing decisions?

What is perceived value and how does it influence buying decisions?

Perceived value is the worth that a consumer assigns to a product based on their perceptions, rather than its actual cost. It influences buying decisions by affecting how much a consumer is willing to pay.

Can you give me an example of perceived value in action?

Sure! For instance, luxury brands often charge more because consumers perceive them as higher quality or status symbols, even if the actual product cost is lower.

How can businesses increase the perceived value of their products?

Businesses can enhance perceived value through branding, quality packaging, customer service, and effective marketing strategies that highlight unique features.

Are there any risks associated with manipulating perceived value?

Yes, if consumers feel misled about the value, it can lead to distrust and damage the brand's reputation in the long run.