The Nature Of Perceived Value

- The third form of customer value is expressive value (Smith and Colgate, 2007); the personal or larger social meaning that the product holds with the customer

Customer value can be defined as what the customer obtains or benefits from the purchase and use of a product versus what they pay for or sacrifice (Gale 1994; Heard 1993-94; Zeithaml 1988). There are four types of customer values, for instance the functional or instrumental value, experiential or hedonic value, symbolic or expressive value and cost or sacrifice value (Smith & Colgate, 2007).

For any business unit, value creation will be the most important goal. Giving out values for the customers will increase in the sales along with the services and for shareholder’s, values will be generating in the method of development in stock prices, will make sure that there will be investing in funds in future. From financial insight, values are meant to be formed when an organization will have revenue, which exceeds the expenses.

On the other hand, there are also contradictions of the value theory, the real essence of value revolves around the tradeoff between the benefits a customer receives from a product and the price he or she pays for it. More precisely, customer value equals to customer-perceived benefits without customer-perceived price. So, the higher the perceived benefit or the lower price of a product, the greater the likelihood that customers will choose that product. This means that, people are not solely buying a product considering a value yet also based on a low price. Since, this situation frequently happens, the marketers repeatedly fail to invest adequately to determine what the

According to Sheth et al (1991), the customer perceived value has five dimensions including functional, conditional, social, emotional, and epistemic values. This value derived from the behaviour of the customer and overall purchasing criteria. Furthermore, this dimension clearly illustrates the ability of the customer to choose whether to continue buying the product or vice versa.

Value – is customer’s idea about value of the product. customer evaluate the benefit and cost of one product to another.

Customer experience is generated from customer value and is a customer 's perception based on interactions through either direct use or distance appreciation of products (Hansen & Christensen, 2003). Holbrook 's (2002) stated that there are three values measuring user experience: usability, social value and usage pleasure. Usability can be defined through efficiency, learnability, memorability, and represents a broader construct integrating perceived ease of use and perceived usefulness. Social value accrues to the user because of possessing a particular product. Finally, pleasure is referred to as soft functionality of a product that represent hedonic value that defines emotional relationship of a user with a product (Cited in Mishra, 2016). There are some concepts that are related to customer-brand

(Nagle, 1987). Theseis three characteristics should beare present in our product, therefore the customer should tend to be “inelastic”

Outcomes of creating customer value: customer loyalty and retention, share of market and share of customer, and customer equity.

Value is the monetary worth of something, which has great influence on indivudual’s behavior and attitude. When a purchase decision is made, it involves a value calculation. In general, value is measured by price. But the price does not really reflect the true value. The most common value is economic value. Beside economic value, there are cultural value and social value. Value is important to both individual and business. This essay mainly explores the concept of value and its influence on people’s living.

The concept of value exists back from the days where people begun engaging in exchange activities, however, it was only recently when both academics and practitioners realised the importance of delivering superior value to customers in order to achieve competitive advantage (Ulaga and Chacour, 2001; Khalifa, 2004; Lindgreen and Wynstra, 2005; Hansen et al.,2008).

According to David Marcer marketing in general can be defined as a procedure that must be employed to understand, anticipate and satisfy the needs of the customer in a profitable way. The main purpose of marketing is to create a public awareness among the people about a product or service which will help a company to promote its product sales and reputation. (Mercer 1996). For this essay, I will be looking at the concept of perceived value and the importance to consumer behaviourism and how marketing plays a big role in this. I will also be discussing this theory and will link them with practical examples on how consumers perceive these various brands and how this will then impact their behaviour on purchasing.

One assesses the ‘the economic value to the consumer’ (EVC) of a product under consideration by

Reflects the perception of the customers on the overall quality/advantages of a product and how the services provided meets the expectation of the customers.

Services possess some unique characteristics which differentiate them from goods or physical products. These peculiar characteristics pose challenges in their delivery and meeting customers’ expectation. Services are characterized by intangibility, inseparability, heterogeneity or variability, lack of ownership and perishability. Due to this characteristics Kotler (1984) suggested that measuring service quality is subjective and for this reason marketers strive to put tangible cues as one of the way to address the challenges of delivering the service and to meet expectation of targeted customers.