Essay on Questions On Customer Perceived Value

1823 Words Jan 21st, 2016 8 Pages
1. Explain Customer-Perceived Value.
Customer Perceived Value (CPV) is a marketing and branding concept that dependent on the perception of the consumer - whether their needs are satisfied or not. Customers react to how a product/service is packaged and marketed. The messages serve as the "benchmarks" which customers level on their satisfaction. Product/service may either be hyped which create high expectation, or oppositely under‐rated which generate "better" appreciation. Companies must determine customers ' true feeling and sense so that they can fit their product/service. This partakes of being "market-driven" product/service positioning. In‐depth market research and study facilitate this process. A highly relevant concept is one of "value proposition". In this process, the benefits offered by companies on their product/service are equated with price asked. Initially, low pricing may be resorted to for the customers to find higher value. A long-term marketing campaign building up quality with concomitant price escalation can be pursued. The product is differentiated with the competitors. The right and timely emerging causes/advocacies must be set such as those relating to health and safety issues, environment friendly concerns, among others. On the whole, Calvo & Barmettier (2013) indicated that the CPV is a value that sums up both the perception benefits (related to performance, service level, relationship, and image) and the total product costs (selling price and other…

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