Definition of Customer Perceived Value
Perceived Value is a key driver of customer buying behavior. It is not simply a comparison of costs and benefits, but the total experience, emotions, and expectations that customers receive from a product or service. When making a decision to spend money, customers often wonder whether the product meets their needs and whether it is superior to other options on the market. That is why perceived value becomes a decisive factor in building long-term relationships between customers and brands.
According to research, our brains often make decisions based on emotions rather than reason. This means that customers not only evaluate the value of a product through specific factors such as price or features, but also through the emotions and personal experiences they have. Therefore, businesses need to focus not only on product quality but also on the experience that customers have when interacting with the brand. When perceived value is enhanced, businesses will not only attract new customers but also retain existing customers, thereby creating a sustainable competitive advantage.
Why improve customer perceived value?
Improving customer perceived value is an important factor in helping businesses build long-term relationships, increase loyalty and create sustainable competitive advantages
Creating competitive value
Enhancing customer perceived value helps brands differentiate themselves in a competitive market. When customers perceive superior quality and experience, they will prioritize choosing your products or services over competitors. At the same time, each customer will become a “brand ambassador”, spreading positive word-of-mouth. This helps support strong growth momentum for businesses.
Building customer loyalty
Customer satisfaction is often shaped by the perceived value they receive. When customers feel that your product not only meets their needs but also delivers superior value, they will believe that their investment is well worth it. However, to build a long-term and sustainable relationship, it is important to be consistent and reliable in delivering this value, avoiding customer disappointment in future experiences.
When customers’ perceived value is increased, they are willing to pay more for products or services that they feel are worth it. Businesses can not only increase their prices but also increase the consumption of their products, thereby generating outstanding revenue. A good example is Apple’s launch of a screen cleaning cloth in 2021, which was priced at $19, but still attracted a lot of attention from customers. This boosted the business’s revenue and profits.
The Secret to Increasing Customer Perceived Value
The secret to increasing customer perceived value lies in creating superior experiences that exceed expectations and deliver superior value for money.
Stimulate shopping needs with attractive programs
To maximize customer perceived value, an effective strategy is to assert that your product offers superior value beyond its listed price. One way to do this is to use techniques that make customers clearly aware of the benefits and savings they can receive by purchasing the product.
In today’s e-commerce landscape, consumers are used to enticing deals. Have you ever wondered why most of the prices you see end in “$29” or “$299”? This is the strategy of “fascination pricing,” a powerful marketing technique that is not just a gimmick but has been proven to increase consumers’ perception of value. Research from the Journal of Consumer Research and surveys at MIT show that consumers often underestimate retail prices, creating a sense of attraction and driving purchase behavior.
Businesses that excel at creating great customer experiences often see significant benefits such as referrals from previous customers, positive reviews, and higher customer retention. Customers are always willing to pay more when they feel they are being cared for and given special attention. This shows that, in addition to the product, service and customer experience play an important role in increasing customer perceived value and loyalty.