The paper "Perceived Value and Its Importance to Consumer Behaviour and Marketing" is a perfect example of marketing coursework. The concept of perceived value theorises a product’ s worth as perceived by the consumer. In economic terms, the concept of perceived value has generally been associated with desirability and utility of a product (Malhotra 2011). Towards this end, the theory of utility offers the conceptual importance of the concept of perceived value. The theory suggests that consumers derive value based on the difference between the disutility corresponding to the price paid for a product and the characteristics of the product (Sá nchez-Ferná ndez and Iniesta-Bonillo 2007).
In any case, this essay contends that the concept of perceived value and its significance to consumer behaviour and marketing involves much more than a rational assessment of utility, as it also involves equality theory, cultural aspects as well as goal and intention identity theories. The concept of perceived value in consumer behaviour and marketing The consumer’ s perceived value of a product affects the price he is willing to pay for it. The concept hypothesises that consumers are unaware of the true production cost of the products and that their choices are based on an internal conviction of how worthy the product is to them.
Basing on this concept, in order for manufacturers to charge a higher price for a product, it should be willing to employ marketing strategies to increase the perceived value of the product (Kanagal 2010). It is therefore agreed that a product’ s customer-perceived value represents the variation between a potential customer’ s evaluation of all the costs and benefits of a product in relation to the perceived alternatives product (Malhotra 2011).
It can further be conceptualized as the correlation between the consumers’ perceived benefits in comparison to the perceived costs of acquiring these benefits. To this end, the term value refers to a trade-off between benefits and sacrifice. Additionally, it entails an interaction between a customer and a commodity (Hall, Robertson and Shaw 2001). The concept of perceived value traces its roots in equity theory, which considers the proportion of the consumer’ s outcome and input to that of the manufacturer’ s outcome/input. Here the equity concept depicts the customer valuation of what is deserved, fair or right for the professed cost of a commodity (Yang & Peterson 2004). For instance, perceived value can be used in the case of the manufacture and sale of perfumes.
In marketing, manufacturers can associate perfume with a sensational celebrity in a bid to create a perception and aura of luxury. Alternatively, perfumes may be subjected to pricey and classy advertising campaigns to create a strong image of the perfume. Based on the concept of perceived value, it can be concluded that consumers do not recognize the cost of production of the perfumes as being relatively low, and hence spend ostentatiously on these commodities due to their high perceived value (Hall, Robertson and Shaw 2001).
Hence, while the perfumes’ cost of production may be a few dollars, the perceived value is far greater.
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