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Product Price and Perceived Value
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It is important that your customer’s perception of what your product is worth is similar to the sales price of the
item. In other words your customers need to feel that they are getting value for their money. Establishing the perceived value of your product
can be achieved by simply asking friends and family to objectively value your product. Try to do this before they know how much you intend to sell
the product for. If they consistently estimate the value of your product at less than you
intend to sell it for, you may have a problem with your perceived value.
The perceived value of a product / service can be increased by:
- Including a value added service like support
or set-up and installation
- Branding, customers perceive products with
strong branding to be better quality - I own several watches one of
which is a Rolex, I have had more problems with the Rolex than all my
other watches put together. So what made me spend $3000.00 on a
watch, where I could have spent £29.99 on an alternative and possibly
more reliable product? (this question will be answered later on in the
publication)
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Customer Testimonials - try to include plenty of preferable customer
accounts of your product / service. this will increase perceived value
by giving visitors to your site actual customer experiences of your product
- The presence of a strong guarantee. This increases the perceived value because it shows that you
are fully committed to your products
- Get your product endorsed by well known
websites or brands - being associated with well-known household brands
will inspire consumer confidence. This can also be extended to
getting your site registered with quality assurance sites that allow
you, once registered, to display their seal of approval.
It is important that before you commit to a particular
product or service that your target market will accept the sales price you
need to achieve to maintain a healthy business profit. If you cannot find a
cost-efficient supply of the product (withstanding all the costs of bringing
the product to market) that meets with your customers expectation of cost,
look for alternative product lines.
Continue to Informational
/ Digital Products
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