“Value is in the eye of the beholder, but what influences the beholder in their perception?”
We’ve probably all heard of famous blind tests that have been undertaken where ‘quality’ brands are put up against other not so highly socially regarded brands to be meticulously judged by a panel of ‘experts’, only to result in the ‘crappy’ brand winning.
Here’s an example of just that, where a couple of super market brands including Asda who had a bottle of Champagne that retails for six pounds won an international sparkling wine blind tasting contest against formidable and esteemed competition.
Cheap beats super expensive. So why does expensive remain expensive and cheap remains cheap, despite being voted a better product than its expensive counterparts?
Price is absolutely relative to our perception and expectation of quality – value is a reflection of how our experience of the product/service met our original expectations. The point is, the power of brand can go a long, long way in manipulating consumer perception of quality and value – and therefore price. Brand is whatever the customer thinks of a company and can be largely swayed based upon the perception or manipulation that a certain price point radiates.
How Customers Perceive Value
From story telling, to trends, to changes in generational attitudes – The interesting infographic below created by VoucherCloud looks at the psychology behind our perceptions of value and tells a few interesting stories along the way including mentions of Lobsters.