People these days are often fascinated by how prestigious, gratifying, and appealing a product appears, rather than the actual benefits its features offer.
. . .
Was that purse really worth your 27k? Is the extra 70k you spent to update to the latest iPhone series reasonable? How was that service you added 2k for, because it had ‘special’ prefixed to it? People these days are often fascinated by how prestigious, gratifying, and appealing a product appears, rather than the actual benefits its features offer. That’s paying for perceived value rather than true utility.
Squandering money?
Isn’t that a ridiculous purchasing behavior for a consumer considered to be generally drawn by discounts? The proposal of the perceived value seems too irresistible, and people fall for it as they are not as rational as they claim to be. But, considering value rises above technical benefits, then we can't dictate what is rational and what's not. Customers say it’s about the story, the experience, the identification, and the lifestyle attached to it. They justify the ‘lavishness’ for the value they believe they are receiving, as satisfaction from purchase is subjective.
What marketing gurus are doing
Businesses are loving the trend and capitalising on it. Today's commercialisation is packed with perceived value propositions, even as innovative products and services thrive. How marketers found their way around these market dynamics is intriguing.
Information overload - Consumers are now empowered by the digital world. As customers are provided with abundant product information, marketers pivot on cultivating viewpoints rather than mere listing and description.
Influencer marketing - The role of digital influencers is also shaping a product's perception.
Commoditization -As production blooms and making differentiation through pure utility is hard, businesses resort to branding and storytelling.
Premiumization- People are willing to pay more for products if they offer an enhanced experience.
Identity and experience - Products are not just a totality of the utility their components provide, but their representation of status and lifestyle.
Perceived value selling is gaining ground in recent years more than cost-based selling. Take Ethiopian Airlines, priced mostly higher than its foreign competitors operating in Ethiopia, still, many are willing to pay the extra for the pan African pride the airline promotes. Not many people can tell apart the coffee from Tomoca from a nice spot at the corner. But they are willing to pay more for the prestige and legacy Tommoca represents rather than the subtly elevated taste, if there is. It’s like buying that expensive Nike; it’s not just the sneakers; it’s the athletic lifestyle you identify with.
Is this essentially manipulative?
There is a vague line between yes and no. If marketers systematically persuade consumers into buying by claiming to offer ungrounded values, deceptive pricing, or hiding crucial product information, then it’s manipulative and unethical. However, they can highlight the soft benefits like emotional, social, and aesthetic values of their product or service to influence the subjective judgment of worth by customers. It’s legitimate as long as authenticity and quality are preserved. As for customers, it always helps to be critical of what they are paying for.
