Title of the paper: Value Perceived Use

Name of the student:

Name of school:

Date:

Value Perceived Use is a term describing the beliefs that the customer has about a particular product. He/she
believes that the product expresses such and such values, is used in such and such situations, and so forth. The
perceived unit value may be related to the "real" value of the good, but it need not be. It is what the customer
believes he is getting that determines the value he places upon it, and not necessarily what he "really" gets. Value
perceived is the benefits which a consumer expects to gain from a product or service. It is derived from a
combination of benefits that are tangible, like hunger abatement, and benefits that are psychosocial in nature, like
status enhancement. The perceived value of a product has a direct effect on demand and should be one of the
factors considered when establishing a price.

A product is judged by a customer in terms of two principle dimensions - price and perceived use value. The people
always have a mindset that the perceived value may be lower than its "real" value. The important point is that
customers want a product that is high in value (as they perceive it) but low in price. However, there are certain
factors which influence a customer’s value perceived use. The first and foremost drive towards it is the brand
loyalty that is, when consumers are attached to a brand, they make repeat purchases over time regardless of price.
Then again companies often use several marketing strategies like rewards, samples and free gifts, incentive etc to
make the product more lucrative and thus, cultivate loyal customers. Then apart from all these, product quality,
service quality, and customer’s satisfaction, family or peer pressure also contribute important driving forces
towards value perceived use.

Page-1
References:

1) Aaker, D.A. (1991).Managing Brand Equity. New York, The Free Press

2) Dick, A., & Basu, K. (1994). Customer Loyalty: Toward an Integrated Conceptual Framework.
Journal of the Academy of Marketing Science, 22(2), 99-113. Sage Publications. Retrieved from
http://jam.sagepub.com/cgi/doi/10.1177/0092070394222001 (27June, 2011)

3) Elliot, S. and Fowell, S. (2000). Expectations versus reality: a snapshot of consumer

experiences with internet retailing. International Journal of Information Management, Vol. 20,
pp. 323-36. London, Sage Publications Ltd.