Which of the following terms describes a customers product or service evaluation and the result of their experience when their needs and expectations are met?

What is Perceived Value?

A perceived value refers to the perspective or opinion of a customer towards a product or service which is often influenced by how the goods and services met the needs and expectations of the customer. Perceived value is otherwise called customer-perceived value, it is how a customer evaluates or rates a product or service when compared to other similar products. Driven out of a customers perception of a product, perceived value is important to marketing professionals as it helps them know the right strategies in marketing their products and services. Here are some important points you should know about perceived value;

• Perceived value refers to a customers opinion or evaluation of a product or service.
• The evaluation is based on how the goods or services met the needs and expectations of the customer and its costs relative to other similar goods.
• The quality and desirability of a product are crucial.
• The actual attribute of a product or service is not an important factor under perceived value.
• Marketers of a specific product attempt to influence customers perceive value of the product by telling them the uniqueness of the product over its peers.

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How does Perceived Value Work?

The desirability of a product, quality, how well it meets the expectations of customers and its price in relation to other similar products are important factors in perceived value. Customers are quick to give their opinion of a product or service based on how well it has satisfied them and its cost. Marketers play on customers perceived value by attempting to make their products have better-perceived values with customers. In certain cases, customers give their perceptions o opinions of a product or service based on its price, rather than its attributes and qualities. Diverse factors trigger perceived value for different customers and it is the duty of marketing professionals to find how to enhance the perceived value of their products.

Advantages of Perceived Utility Value

The major advantage of the perceived value to marketing professionals is that it helps them enhance the perceived value of their products by showing how their products are superior to their peers. To show that a product is superior to other products, a marketer needs to identify the unique attributes, extra benefits and exceptional desirability of their products that will influence customers perceived value of the products. When creating a marketing campaign for products, companies seet to create these categories of utilities;

• Form utility: how appealing a product is to customers, at first sight, It entails being creative about the design of the product to achieve aesthetic appeal.
• Time Utility: How fast can customers access a product or service delivery?
• Place utility: How convenient it is for customers to purchase the products and access the service.
• Task utility: The extra value that a product or service has that saves a buyer lots of stress.
• Possession utility: This is how easy customers find it to possess a product in terms of where it can be bought and how orders and delivery can be made.

Special Considerations of Perceived Value

A company's brand also plays a vital role in how customers perceive or evaluate their products. For instance, a renowned and well-favored brand has the tendency of appealing more to customers over an unpopular brand. The desirability of a product is another factor that affects perceived value. For instance, luxury goods have good perceived value and easily attract customers. The sense of ownership or feeling of prestige that customers get from luxury goods is an important consideration for perceived value. For instance, popular brands such as a Rolex watch, Toyota Car, Apple phone or watch have good perceived value, not because of the function they serve but the luxurious feeling attached to them.

Related Topics

• What is a Product?
• What Types of Product are There?
• Durable Goods
• How are Goods Different from Services?
• What Components do Products Include?
• What is Product Quality?
• Perceived Value of a Product
• Why is Product Packaging Important?
• White Label Product
• What is Product Warranty?
• Innovation Adoption Curve
• Product Life Cycle

Academic Research on Perceived Value

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What Is Perceived Value?

In marketing terminology, perceived value is the customers' evaluation of the merits of a product or service, and its ability to meet their needs and expectations, especially in comparison with its peers.

Marketing professionals try to influence consumers' perceived value of a product by describing the attributes that make it superior to the competition.

Key Takeaways

• Perceived value is a customer's own perception of a product or service's merit or desirability to them, especially in comparison to a competitor's product.
• Perceived value is measured by the price the public is willing to pay for a good or service.
• The marketing of a product or service involves attempting to influence and increase its perceived value, which can emphasize qualities such as its aesthetic design, accessibility, or convenience.

Understanding Perceived Value

Perceived value comes down to the price the public is willing to pay for a good or service. Even a snap decision made in a store aisle involves an analysis of a product's ability to fulfill a need and provide satisfaction compared to other products under different brand names.

The work of the marketing professional is to enhance the perceived value of the brand they are selling.

The pricing of products takes perceived value into consideration. In some cases, the price of a product or service may have more to do with its emotional appeal than with the actual cost of production.

Even a snap decision made in a store aisle involves an analysis of a product's perceived ability to fulfill a need and provide satisfaction.

Types of Perceived Utility Value

Marketers who want to influence the perceived value of a product define its attributes in terms of its utility, or the extra benefits and values that the customer expects to get in using it. The perceived utility of many products and services may differ widely even among similar or virtually identical products.

There are five types of utilities that companies aim to create through marketing campaigns for products:

• Form utility is the aesthetic appeal of the physical design of a product. Even a utilitarian product like a frying pan can increase in perceived value because of its appealing design.
• Task utility is the value attached to a service that saves the customer time, effort, or money. Car detailing shops and laundry services offer utility value.
• Time utility refers to the ease of access to a service or product, such as 24-hour service compared to 9-to-5 hours.
• Place utility is the convenience of the location, like a fast-food outlet that's around the corner compared to a restaurant that's 20 miles away.
• Possession utility refers to the ease of purchasing the product. A department store that features online ordering, home delivery, or in-store pickup is aiming for possession utility.

Special Considerations of Perceived Value

A company's brand is meant to communicate a set of expectations associated with its products or services. That's why a well-established brand can command a higher price than its generic equivalents. Advil and Motrin both contain ibuprofen, but both brands are priced higher than generic ibuprofen.

Luxury goods, however, carry the perception of value to another level with the addition of prestige. The highest value of luxury goods is not associated with their utility but with the prestige that owning and using it entails. The perceived value of a Rolex watch is not based on its functionality but with its image as a mark of personal success and refined taste.

At the opposite end of the scale, some brands are marketed as smart bargains. The perceived value of a product may be its low price in comparison with competitors of equal quality.

What do you call the term used to describe the satisfaction of the customer experiences or expect to experience by taking a given action relative to the cost of that action?

What is meant by the term customer experience?

What do you call to the customer's perception of how well a company's products and services meet expectations?

How do you describe customer service experience?