What is Perceived Value?

Perceived value refers to the perspective or opinion of a customer towards a product or service which is often influenced by how the goods and services met the needs and expectations of the customer. 

Where Does Customer Perceived Value Come From? 

Driven out of a customers perception of a product. The quality and desirability of a product are crucial.

Why is Customer Perceived Value Important?

Marketers of a specific product attempt to influence customers perceive value of the product by telling them the uniqueness of the product over its peers.

How does Perceived Value Relate to Utility?

Perceived value is related to the customer's perception of the utility s/he will receive from the product. There several types of utility: 

• Form utility: how appealing a product is to customers, at first sight (the aesthetic)
• Time Utility: How fast can customers access a product or service delivery?
• Place utility: How convenient it is for customers to purchase the products and access the service.
• Task utility: The extra value that a product or service has that saves a buyer lots of stress.
• Possession utility: This is how easy customers find it to possess a product in terms of where it can be bought and how orders and delivery can be made.

Related Topics

• What is a Product?
• What Types of Product are There?
• Durable Goods
• How are Goods Different from Services?
• What Components do Products Include?
• What is Product Quality?
• Perceived Value of a Product
• Why is Product Packaging Important?
• White Label Product
• What is Product Warranty?
• Innovation Adoption Curve
• Product Life Cycle