Monday, September 14, 2015

Customer Perception and Customer Value

Value is subjective to the beholder but follows segmented consumer demographics where value can be targeted. Each demographic within the market finds a different value based on options and price. Knowing who your target market is can make a big difference on how to create value that attracts more customers.

Trends are moving away from cost-based strategies to customer-oriented value strategies to raise market competitiveness (Tetteh, 2015). Cost is only one aspect of that perceived value. Consumers consider design, brand, functionality, quality, and many more different options in creating a perception of total product value.

Cost is what the consumer is willing to give up to obtain a certain product. Therefore raising the value also leads to greater product equity that ends with higher priced sales. People don't want to give up their hard earned money unless they find that product more to their liking than many of the alternative products on the market.

Raising value doesn't need to cost a lot. Sometimes it can require something as simple as re-branding the same product and marketing it somewhere else while it could be more complex like redesigning the next version with more focus on key customer needs.  There is a wide range of ways to raise value that also includes warranties, add-on services, bundles, etc.

Different demographic groups will have different needs. Knowing the details of the demographic group such as education, interests, lifestyle, age, income, and so forth will provide an opportunity to ensure the product meets the needs of customers. The more connected a person is to the customer the more successful they are in understanding how value is perceived and measured in that group.

Tetteh, V. (2015). Value-based strategies for business marketing. Research Starters Business.

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