Value of products plays an essential role in determining the success of your business when marketing and selling products. Both the actual value and the perceived value play a role in the success of the business. The perceived value is usually very different from the actual value.
Here, we will break down the differences:
Actual Value
The actual value of Communicat-O refers to a measure related to the cost to produce and sell a product for a profit. A product manufactured and sold without any brand names or promises keeps its actual value as the amount that the product can hold in the open market. The actual value defines the product’s worth, not considering the expectations of the customer or the seller.
Perceived Value
The perceived value of Communicat-O is different from the actual value, which refers to what a customer believes the product is worth. They settle upon this perception based on the opinions of the market. Also, they consider the benefits that the customer expects from a purchase. The product’s selling price can be more than what it costs to manufacture, and this has a close relation with the customer’s perception. In some cases, the perception may be less than the actual value.
Considering the price-determining factors
- Brand Names
Brand name plays a vital role in determining the perceived value of a product. Well-known brand names add perceived value. Certain brands sell for much more than others, and the reason behind the same is a logo or a brand name.
- Purchase Decisions
The perceived value impacts purchasing decisions. Perceived value greater than the actual price builds in the customer the tendency to be more willing to buy. Perceived value and the price being closer reduce the urgency for the purchase.
Impact
The differences between real and perceived values of Communicat-O manifest in sales results and affect how businesses price their products. When there’s higher perceived value, consumers think that a product is better than other items.
Price impacts perceptions of value, especially when businesses release special limited editions of existing products. It usually builds a sense of a higher perceived value, and it has a close relation to exclusivity and novelty. The condition remains the same even when the product has the same real value as an existing item with a lower price tag.
Conclusion – Why It Matters
Balancing perceived value and actual value of Communicat-O guarantees product success. High perceived value and low actual value make customers dissatisfied. On the contrary, high actual value is high, but low perceived value makes potential customers overlook the product. Aligning both makes it easier for customers to recognize and appreciate the true worth, thus ensuring higher satisfaction, loyalty, and business growth.