As a business owner who sells products to customers and a consumer who purchases products from other sellers, Dinesh has a deep understanding about the perceived value received when purchasing a good or service. He decides to teach his son, who will eventually take over the business, about this concept. What does Dinesh tell his son that he will be teaching him about?
Dinesh tells his son that he will be teaching him about the concept of perceived value. Perceived value refers to the subjective worth or benefit that a customer believes they will receive when purchasing a particular product or service. It is based on a combination of factors, including the product's features and benefits, its price, the brand reputation, and the customer's own needs and preferences.
To explain further, Dinesh can tell his son that perceived value is not solely determined by the actual cost or quality of a product. It is a perception created by the customer's overall experience and expectations. For example, a customer may be willing to pay a higher price for a product if they believe it will provide them with greater satisfaction, convenience, or quality compared to alternative options.
Dinesh can emphasize that understanding and delivering perceived value is crucial for businesses. By effectively communicating the unique selling points of a product and consistently meeting or exceeding customer expectations, businesses can build trust, loyalty, and a competitive edge. It also helps businesses establish pricing strategies that align with the perceived value of their offerings.
To teach his son about perceived value, Dinesh could use real-life examples, encourage him to research customer feedback and reviews, explore competitor analysis, or even conduct customer surveys to gauge opinions and preferences. Additionally, Dinesh can advise his son to focus on continuous improvement, innovation, and understanding customer needs to enhance the perceived value of their offerings.