What is it? Product value is an indicator based on which a customer makes a choice in favor of purchasing a product. It always combines a set of factors, from cost to characteristics and capabilities.
How to manage? Value can be created and it must be managed. The customer must understand why your product is the best option for him. But to do this, you need to know the problems of buyers and choose an effective way to present your offer.
The article explains:
The concept truemoney database of product value
Distinctive features of product value
The Importance of Product Value for Business
Window of opportunity to communicate product value
Creating product value
Evaluation of the existing value of the product
Examples of Product Value Verification
Value-based pricing
Product Value Management
Increasing the value of the product
Marketing techniques to increase product value
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
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The concept of product value
Product value is a general concept that reveals how useful a product is when purchased and used by the consumer.
The sale of any product is impossible without the participation of a seller, whose activity consists of ensuring that the consumer understands the basic values of the purchased product.
By and large, the value of a product reflects the benefits that the consumer is willing to pay for. But one should not think that price and value are identical concepts. From a marketing perspective, the latter includes the benefits and all the advantages that a customer can receive by purchasing a product or service.
The concept of product value
Types of product value
Perceived. It is the difference between the perceived value of the product and its similar value. Perceived utility includes all those characteristics of the product that can realize the customer's needs. The perceived price includes material and non-material costs of finding and purchasing the product, as well as risks associated with the end of use of the product.
Differential value. It summarizes all the benefits of purchasing a product of a specific brand. This includes the economic benefit, which is the most attractive price of this product on the market, and the value of the product, which is characterized by its individual properties. Simply put, with the help of the differential value of the product, you can find out its usefulness among similar products existing on the market.