Exchange of Money Perception in Consumer Behavior

Question: Discuss about the Exchange of Money for Perception in Consumer Behavior. Answer: Perceived Value Perceived value is the perception of the consumer based on the utility of a product. It can be based on four aspects: 1) value of the product what the consumer really wants, 2) value as to low price, 3) value as per the quality what the consumer get in exchange of money, 4) value as per what is acquired as what is sacrificed. Zeithaml (1988) Perceived value is a value that a consumer has in their mind about any particular brand or product. In such cases, most of the times consumers are not aware of the actual cost of the product they are indulge to buy instead they only have a perception about that product that it is of high quality or the best of the market. As in order to create higher perceived value producers uses marketing strategies which may pursue a good brand image in customers mind (Investopedia, 2010). "Seen esteem" gets to be noteworthy when the items are fundamentally the same as each other. Frosty and hack solutions are great case of saw quality in an aggressive domain. Since huge numbers of the fixings among contending brands are indistinguishable, the firm offering the item should construct a subjective impression of their item that makes its item appear to be exceptional. "Seem" is the watchword. They are not by any stretch of the imagination diverse (Smallbusiness.chron.com, 2016). Regardless of the type of the business the producer have, consumers always make purchases on the basis of their perceived value (Miciak Shanklin, 1994).. That is why the producer must be aware of how to create a high perceived value. Perceived value is greater than the price tag which leads the consumer to buy products. If it is the fact, then the producers have two options. We can bring down the cost, such that it will fall underneath their apparent worth, or, we can build their apparent estimation of the item, such that it crosses the value edge. Of the two techniques above, which is ideal? Sensibly, we would reason that raising the apparent worth is superior to anything bringing down the cost and settling for smaller net revenues. This is basically, the essentials of showcasing and publicizing, and it is the reason organizations burn through billions of dollars a year to persuade buyers why their item is "justified, despite all the trouble". Be that as it may, one moment. As a rule raising the apparent estimation of an item includes some significant pitfalls, so it is not all that simple. In any case, on the off chance that we advise our choices through examination, we will see that there are many approaches to increment saw esteem without strenuously burdening our wallets (Schneider, 2014). We should investigate. Expand the Price The majority of us have a tendency to trust that individuals need to purchase less expensive products to spare cash. While there is some truth to that, the inverse can be generally as genuine; now and then individuals need to purchase the more costly thing. For them the apparent estimation of the costly thing some of the time surpass than the first esteem (Lin, 2003. p. 27).. Robert Cialdini, creator of top of the line novel Influence, put it best: "In business sectors in which individuals are not totally beyond any doubt of how to evaluate quality, they utilize cost as a stand-in for quality." To put it plainly, individuals expect that higher estimated merchandise are better (in light of the fact that, frequently, they are). This is especially detectable with extravagance products. In a study by Stanford and Caltech specialists selected 11 male Caltech graduate understudies who said they loved red wine. The subjects were informed that they would attempt five distinctive Cabernet Sauvignons. Be that as it may, just three wines were utilizedtwo were given twice. The principal wine, which regularly costs $5, was appeared in two containers, one costing $5 (genuine cost) and one as far as anyone knows costing $45 (fake cost). The second wine was done backward, typically costing $90 and appeared in a $90 and $10 bottle. They found that expanding the apparent cost of a container of wine expanded the genuine AND saw delight that testers got from drinking the wine. The members said they could taste five unique wines, despite the fact that there were just three, and included that the wines recognized as more costly tasted better. In this case, unmistakably only putting a high sticker price on a container of wine was sufficient to build the apparent quality (which then really interpreted into real esteem through their delight in it). Furthermore, we can infer that with regards to wine - nobody truly recognizes what they are discussing. Importance Of Perceived Value To Consumer Behaviour And Marketing It is the perceived value of a product because of which a consumer buys products and services. Before planning a vacation, or booking a dine table people do a lot of research on the internet instead of directly going at that place. Research as reviewing sites, people reviews and ratings. The person gathers an idea what exactly the place is and they will get in return of their time and money spent (Monroe's,1979). This is what a perceived value of a business. Every time a customer goes for shopping or buying a product the first question they always ask from themselves Is this product worth my hard-earned money? Is this service worth my time? Obviously it is the job of the producer to give answer to these questions. As in order to make customers loyal the ne has to answer such questions. Once a producer fails to answers these types of questions, then he cannot expect the customer loyalty in future and their support. Perceived Value In Consumer Behaviour Influencing Perception Perceived value of a product influences the decision of the consumer. As on continuous basis consumers collects information about the product and the company of which they are going to buy the product in order to get the information if the company is offering value. Consumer perception is the reality for a business. Sometimes by making manipulations and tricky techniques the producer influence the decision of the consumer just for the purpose to present themselves in best possible light, as high perceived value helps in increasing sales as well as with high priced (Mack, 2016). Reaching Consumers Main factor to influence customer perception is exposure, he more you expose your qualities More will be customers get aware. So businesses do all the things to publicize their product and offerings. But in a huge market when every company is exposing their products and adopting marketing strategies, it is to responsibility of the company to adopt strategies which can help in making the product stand out from the crowd. Risk Perception Risk perception is another factor which must be taken into account when the producer is trying to influence consumer behaviour. If the consume is not familiar with the product they are not able to assess the risk involved in purchasing the product which makes the poor product image (Mwencha , 2014. p. 143).. In order to overcome this hesitancy business must provide the product information as much as possible with encouraging product reviews (Agarwal, S., Teas, R. ,2001). Here is an option too, providing a test of the product in stores can minimize the risk perception of the consumer. Customer Retention Customer retention means making a consumer loyal with the product and their purchases. Successful businesses need to foster their clients time to time in order to make them retained with the product. As after using a product it is a need of the producer t make the consumer retained with that product only by maintaining a good reputation and establishing brand loyalty (Parasurman, Grewal, 2000). Offering after sales services, taking feedbacks as it helps in taking perceptions about the consumer and helps the business to improve them in future. As loyal consumers generates more revenue rather than the new customers. We can take some examples of perceived value of companies. Apple: Perceived value is obtained through external sources rather than from internal sources. As critiques and supporter provide their feedback and experience with the brand and service. Let us take an example of Apple. It is greatest example of perceived value. iPhone is not a big step technologically-as all other companies competing in the market are also providing the same qualities as well as technology. But in the way, Steve jobs presented his products and packaged, make it a big brand and a mad desire in customers mind. Apple is still able to gain a high perceived value as the consumers are loyal (Marketing Zeus, 2016). Starbucks Satrbucks is a famous coffee brand. Do we have any idea why we pays $2-3 for the same cup of coffee which we can get in 70-80 cents only (Yeh, 2013).. The answer comes in comprehension client saw esteem. Starbucks has changed our apparent estimation of espresso. We are not just purchasing espresso at Starbucks- - we are purchasing an "affair." This experience offers an extended arrangement of worth drivers, for example, an assortment of flavours and tastes, store feeling, client administration, and physical association in an undeniably unoriginal, innovation commanded world. We pay more since we see a more prominent worth (Pirson, n.d.). References Agarwal, S., Teas, R. (2001). Perceived Value: Mediating Role of Perceived Risk.Journal of Marketing Theory and Practice,9(4), 1-14. Retrieved from https://www.jstor.org/stable/40470071 com (2010) Perceived value, in Available at: https://www.investopedia.com/terms/p/perceived-value.asp (Accessed: 21 August 2016). Lin, C. (2003), The role of customer perceived value in generating customer satisfaction: An e-business perspective. Journal of Research in Marketing Entrepreneurship, 5(1), 25-39. Marketing Zeus. (2016). Increase Your Perceived Value; Increase Your Sales. 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