Discuss the Concept of Perceived Value and Its Importance to Consumer Behaviour and Marketing. Discuss the Theory and Then Give Practical Examples of How Customers Perceive Various Brands and How This Impacts on Their Behaviour.

1186 Words Sep 4th, 2014 5 Pages
The concept of perceived value of a product is the difference between the potential customer's assessment of all the benefits and all the costs of an offering compared to the perceived alternatives. Value is the function of consumer’s evaluation thus it is subjective where the cost and benefit must be positive values. We can express as the following equation:
Value = Benefits / Cost
The consumer's perceived value of a good or service affects the price that he or she is willing to pay for it. For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their
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Sometimes, people get influenced by their friends, peers, colleagues; sometimes with the trend or following the different culture. Moreover people’s social status plays a great role in the consumer buying behaviour. Class discrepancies permit companies to place their products to particular social classes. The most common example is automobile industry. The marketing strategy of BMW is totally different from that of Hyundai because their target market is different.
Brand is the picture that consumers have in their mind. It is unique characteristics of an entity that have been created over time. In addition, The American Association defines a brand as “a name, term, sign, symbol or design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. However the concept of brand represents customer interest and lifestyle.
Brand perception means how we see think about any brand. That means some people like Nike brand and some people like Adidas brand in case of shoes because one group thinks Nike product is good another group thinks Adidas product is good. So this is called brand perception, the way consumer see the product or services. Thus, perception is the way we filter stimuli and then make sense out of it.
Perception has the following steps: * Exposure – detecting an incentive * Attention –

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