Customer Perceived Value

2866 Words12 Pages
INTRODUCTION In recent times, the focus on marketing has been placed on customer perceived value due to the evolution of the marketplace and its associated strategies to capture the market. The future belongs to those who focuses on the customer. Perceived customer value is seen as an important factor that influences customer behaviour and is part of the business model of successful organisations. Perceived customer value is part of organisations’ marketing and branding concept that points out that success of a product is largely based on whether customers believe it can satisfy their needs. This phrase emphasizes that when a company develops its brand and markets its products, customers ultimately determine how to interpret and react to marketing messages. Companies spend significant time researching the market to get a sense of how customers think and feel (Anon., 2014). A value proposition is a statement of specific results that a customer would benefit from purchasing a product or service relative to the price the customer pays. This statement is used to get potential customers who would find the company’s product or service most useful (Anon., 2014). The intangible value proposition is made tangible by an offering, which can be a combination of products, services, information and experiences. Companies’ influence the customers’ perceived value through market research and analysis identifying the needs of its customers and producing a product or service that gives value as well as satisfy the customers. Generally, a customer would prefer to go for a product or service that is perceived to offer the best value platform to its customers and by value, I mean the combination of quality, service and price (Kotler & Keller, 2012). A good value proposition is considered to be a source of gaining competitive advantage over other competitors in a
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