From the customer's perspective, value is the ratio of perceived benefits to perceived price. Marketers can increase perceived value by increasing the perceived benefits or by lowering the perceived price. Perceived benefits are anything customers believe they receive from the overall value package. The perceived price may include the time, inconvenience, and extra money a customer must invest to buy a product. Customer perceptions of value drive the marketer's pricing process.
Marketers can sell only at a price customers are willing to pay for perceived value.
The value equation changes as customer needs change, products and benefits change, and prices change. Also consider what customers might substitute for your product. The Rise of Value Marketing and Value Pricing 1. As marketers improve the quality of their products, customers come to expect higher quality from all products in a category. Japanese refer to this phenomenon as atarimae hinshitsu , meaning quality taken for granted.