Increasing The Perceived Value of Your Product or Service
Every product or service has a value to it. A product's value is mainly determined by how much demand for the item exists in the market. But how can you increase demand for your product? One way you can do that is by creating perceived value in your customers minds, which then increases their desire to purchase it. In fact, creating a perceived value high enough could make your customers buy more of your product or service than they originally planned on buying just for the sake of having a high perceived value! There are many different ways to create this supremely desired feeling of superiority and some are easier than others and some are more effective at increasing demand.
First lets take a look at just how the brain works and how it is affected by these things. The parts of the brain involved in creating perceived value are the amygdala, and the cortex (both part of your limbic system). When you think about buying a new product or service you are basically going through three different processes that happen in your brain, they are:
1. A) The concept of "buying" or "offering to buy". This is where you think about buying it and what is good about it.
Fight or Flight - Mechanism (animal)
2. C) You perceive value. You taste and smell it, hear it, see it, feel it, etc.
3. D) The decision to buy. (for example if you're buying for yourself, you make the decision to purchase.) This is where you make a rational choice that you wish to purchase this product and that the perceived value is good enough to justify your decision.
Just like the conscious part of our brains usually takes control over the three processes (A-C-D) we have a subconscious part of our brain too which controls "fight or flight" (animal instinct), emotions (conditioned responses), and logical analysis or reasoning behind our decisions.
When we are deciding whether to purchase a product or service there is a part of our brain that is analyzing the situation (called the logical brain) and then we also have an emotional part of our brain (called the Automatic nervous system) which is taking in the feelings and emotions, tastes, smells, sights, etc. that it receives from other parts of your body. So while you rationally think about buying something there are many subconscious feelings being created by how you physically experience this perception based on what you see, hear, feel, smell or taste.
There are many different factors that go into creating a high perceived value in your customer's mind. You can create this sense of worth by making your customer think of how good it would be to have your product or service to solve a problem (desire), you can make them think your product is better than the competitors, and most importantly you need to show them your product has unconditional value.
Desire - that is what creates an action. We all want many different things in life. When we think about buying something (desire) whether it be a new car, a new computer, or a new pair of shoes, we all have the same desire to purchase it. This desire is what creates an action to buy. So why not take advantage of that desire and make your customer want to give you more money by selling them on the perceived value in your product or service. If you can convince them that their desired purchase has high perceived value then they will give you more money for it at a cheaper price.
Value - just like real estate, no one buys anything that does not have value. Value is something that everyone believes in. Sometimes we all have different perceptions of value and that is why it is so important to give our customers a reason to believe in your value when buying your product or service. Most people spend most of their time trying to figure out what they want to buy instead of trying to figure out what they need to buy. A good way of knowing what you should be selling is by just asking yourself, "what products and services are my target customer buying and do I have a better/cheaper version than the other guy?" If you can find products that your customers are looking for then you know exactly what products and services you need to be offering.
You can also create high perceived value by differentiating yourself from other similar products and services in the market. If you can show your customers that your product has no competitors or is a unique product then they will treat it as if it has an unconditional value. Customers do not always buy the best of everything, but if you can make them believe that your product is both a good deal and better than the competition then you will sell more and at a higher price.
Unconditional Value - this is where trust comes into play. If a customer does not trust what you are selling to them they will often not give it another thought again. You have to look at value from your customers point of view and then it will be easier for you to provide that unconditional value. What does your customer want? Their answer = perceived value.
All in all you need to think before you sell. If you're not thinking about how to create high perceived value in your customers mind then you will fail as a business owner. You need to think in ways that are comfortable for your customer and see the value that you are selling.
I hope this helps some of you understand the wonderful world of perceived value and how it can help you to increase sales for your business.
Knowing how this works will help you get huge and repeat customers by making them feel like they got a deal on their product or service when they first see it!
If any of this was confusing, let me know in the comments! Also if you have any questions about anything I've said please feel free to ask them.
Conclusion:
People either buy from people they like or people they know. This is called the "understanding" principle. Get enough exposure for your product or service and create a relationship with your customers and they will buy from you more times. (We live in a world of instant gratification, we want what we want and we want it now!)
When you establish trust with your customer you can build a relationship that lasts for years and years to come. You can get repeat business by selling them on the fact that not only do you have good marketing but your product also has high perceived value!
Then when you are creating your marketing strategy for your products and services make sure that you align them so that they all work together to achieve one goal...