This video discusses the difference between value and perceived value, a concept that many people find challenging to grasp.
Video Summary
This video discusses the difference between value and perceived value, a concept that many people find challenging to grasp.
- Real value is defined as the tangible costs involved in producing a product or service, its utility to the buyer, and the value of its individual components. It encompasses factors such as production costs, time, labor, and machinery.
- Perceived value, on the other hand, is described as a more abstract measurement that reflects how much customers feel a product is worth to them personally. It is influenced by factors like brand reputation, personal preferences, and emotional attachment.
- An example provided in the discussion is the willingness of individuals to pay a higher price for prestigious items like expensive handbags, despite the lower production cost. This signifies perceived value, as customers attribute additional worth to the product based on emotional factors.
- Perceived value varies among consumers and is subjective, as everyone’s perception of the same product or service can differ.
- Ultimately, perceived value is determined by how customers feel about a product or service and what they believe it is worth to them personally, such as feeling prestigious when carrying a high-end handbag. This emotional benefit derived from the product contributes to its perceived value.
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