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What is Perceived Value?

What is Perceived Value?

What is Perceived Value?

What is Perceived Value?

You might have heard of the term “perceived value”. The Perceived Value Theory is an incredibly important concept in sales. But what exactly does it mean and how can you create it? Well, it’s all about creating value for the item or service you are selling. Creating perceived value isn’t always easy, but the best salesmen are experts in doing so.

Perceived value is the value that the customer assigns a good or service. This doesn’t necessarily mean a monetary value either, it is about creating usefulness and value for money for the customer. Perceived value is an integral part of sales-copy. This is content written to sell products, particularly product descriptions. It is not about how much something is actually worth – that can be described as intrinsic value, but about how much somebody thinks it is worth. It is the customer’s evaluation of the merits of a product or service.

Creating Perceived Value in Product Descriptions

Descriptions are your chance to sell the product, they are essentially a test of your ability to convince your customer to buy the item. You have to create interest and put the customer’s imagination to work. A good way to get your head around perceived value is to imagine any item in a charity shop. Goods are usually really cheap in a charity shop, but if these items were in an online store with a good description and a few photos, they will sell for a higher price. This is because of how we perceive goods in a charity shop (It’s old and unwanted, therefore it must be cheap) and how easily we are persuaded, mostly subconsciously, about the value of goods.

Let’s look at an example of creating perceived value:

What is Perceived Value?

We’ll use this plain doorstop as an example of perceived value.

  1. “Our wooden door stop holds doors of all shapes and sizes. It is durable with a smooth finish.”
  2. “Our simplistic oak door stopper is a hand-crafted single piece designed to fit all doors. The high-quality craftsmanship ensures a long-lasting smooth finish.”

Which description sells better? Which one creates value? By playing to the human imagination, we create value in the mind of the potential customer. This is the key to successful selling.

Let’s break it down. The second description emphasizes the quality of manufacturing. This makes the reader think the doorstop has some kind of special manufacturing technique making it superior in some way. The use of Simplistic attributes a style to the door stop, here we are turning a weakness into a strength. There is such a thing as overkill, and effective descriptions need to be both concise and information-heavy. This can be a difficult mix but like all things, comes with practice. If you overdo it then your customers are going to assume you’re just saying anything to get them to buy it.

How to Apply Perceived Value

“But I don’t sell doorstops” – If you can do this with a blank chunk of wood, you can do it with anything. One of the most common techniques for creating powerful descriptions if the idea of a “perfect day”. This is where you try to imagine the perfect day while implementing the product and describe it to the customer. In other words, creating the best-case scenario with that product. Now, that is difficult to do with a plain doorstop, but for more luxury items the concept should be absolutely central to the description.

Perceived value is particularly imported for online stores, where the description is integral to convincing the consumer to make a purchase. One of the places this is most evident is in the dropshipping niche. Dropshippers sell cheap goods for markup and do so with effective marketing such as a strong website and effective product descriptions – convincing the customer they are getting good value for money. If you are interested in starting your own dropshipping store and applying the concept of perceived value, look no further than our in-depth guide on the matter.

Conclusions

Perceived Value is the concept of creating or adding value for a product or service. It is where you use strong descriptions and use-case examples to convince a customer of the value of an item. This concept is used extensively by salespeople to create markups on products and to produce profits from doing so. If you are trying to sell something, perceived value is a key concept you must be aware of and use to your advantage for better results.

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