What is perceived value and why is it important?

What is perceived value and why is it important?

Perceived value is the worth that a product or service has in the mind of the consumer. It's crucial because it influences purchasing decisions.

How does perceived value differ from actual value?

Actual value is the intrinsic worth based on cost and quality, while perceived value is subjective and based on consumer perception.

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

Sure! Luxury brands often charge more due to their perceived value, even if the actual production cost is lower than cheaper alternatives.

How can businesses increase perceived value?

Businesses can enhance perceived value through branding, quality customer service, and effective marketing strategies.

What role does marketing play in shaping perceived value?

Marketing plays a vital role by creating narratives and associations that elevate a product's perceived value in consumers' minds.