Author : Daniel Wadleigh
The value of something is what someone is willing and able to pay for it; no more, no less. You may value your dog at $1,000 but, since you're likely the only one with that willingness (forget ability), the "perceived" value by others is a bit less. Value is either perceived or intrinsic. Perceived value is what someone is willing and able to pay for it. Have you ever seen someone pay an extra amount for a product (like $165,000 for Judy Garland's slippers from "The Wizard of Oz") because of value other than the physical replacement cost?Intrinsic value, on the other hand, is the actual price of the hard goods. The cost of water is about $1.30 per 1000 gallons through the average city system. Water bought in store bottles costs $1.00 per gallon, or about $1000 per 1000 gallons. Perrier, at $1.50 per 6 oz. bottle, costs about $32,000 per 1000 gallons. Is Perrier 32 times more valuable than bottled gallons? If you buy a can of beer in a store, it costs about $.60 per 12 oz. can. If you buy a 12 oz. bottle in a restaurant, it costs about twice as much, if not more. Does it taste twice as good?There must be some additional perceived value derived from paying twice as much for the same product whose intrinsic value is exactly the same. The point is, perceived value can have many forms; emotional, mental or physical. Using the concept of dependability, you must reinforce that the consumer will get what he is paying for with guarantees, third party authenticity (someone with credibility other than you), or by establishing a reputation that becomes commonly accepted.This last one is what happens when consumption by the public becomes routine. As other competitors also grow in acceptance (or expose themselves as handling a product that is already accepted), you must increase your perceived value to increase your market share. Using the principles of human responses, provide assurances that using your product or service will have additional values. Quicker, longer, safer or more convenient. Mental conditioning has great effects, also. This means that status sells. An Yves St. Laurent label has a lot more perceived than intrinsic value.Daniel Wadleigh is a nationally published marketing consultant and has programs for start-up and existing businesses including effective web sites, e-mail/database, other non-internet ways to drive them to your website, and low cost ways to get more new customers.Go to: http://www.more-new-customers.com to get free copy of "Marketing to Men vs. Women- the 8 different responses" and a Free copy of "Market Research- 7 Questions to Ask to Start-up and 7 to Ask to Improve Any Business."
Keyword : marketing,start-up,web creation,small business,retail,web hosting,grow profits,strategic planning
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