Value Perception

Perceived value is the consumer's evaluation of the merits of a product or service and its ability to meet or exceed their needs and expectations. Perceived value is the only reason that a customer will purchase a product or invest time in a service.

In marketing and branding, it is essential to identify and highlight the best benefits of a product in order to position it correctly within the market.

To correctly position a product it’s important to have a comprehensive understanding of your own, and your competitors, strengths and weaknesses - especially in comparison to what your target market will hold of value. It’s naïve to assume that what one brand has to offer is going to be the perfect solution for everyone - rather, it should be positioned and marketed to appeal to the ideals of a brand’s ‘perfect’ customer.

For example, let’s consider the two cars above. One is an expensive performance car, the other a much more reasonably priced, average, everyday car. It would be of no use to advertise our average, everyday car based on its speed (or lack thereof) or striking looks, however, it would be equally ineffective to market the performance car as a car that’s ideal as a cost-efficient daily run around.

The values highlighted by a brand are the values that prospective customers will associate with your brand.

Ensuring that a product or service is strategically positioned to be perceived by the most relevant values for your target market means that true customer loyalty can be catalysed when actual value exceeds the initial perceived value. Correct positioning and appropriate branding mean that customers are able to gain an initial understanding of a brand and make the decision to purchase based on its offer in comparison to their needs.