Perceived Value

Perceived Value is the value that customers believe a product or service has.

It is not just the actual monetary cost but a comprehensive assessment of the benefits and satisfaction a customer expects from a product or service.

This perception is influenced by various factors, including brand image, product features, customer experiences, and social proof.1

Visual Representation:

perceived value visual representation

Key Factors Influencing Perceived Value

  1. Brand Reputation: Well-known and trusted brands often have higher perceived value.
  2. Product Quality: Good materials, craftsmanship, and durability make a product seem more valuable.
  3. Marketing and Advertising: Effective marketing can make a product more appealing and valuable.
  4. Customer Reviews: Positive reviews from other customers can increase a product’s perceived value.
  5. Price Comparison: Customers compare prices with similar products. A higher price can seem justified if the product offers more perceived benefits.
  6. Emotional Connection: Products that evoke positive feelings, like happiness or nostalgia, often have higher perceived value.23

Why Perceived Value Matters

Perceived value is a big deal for a couple of reasons.

But the most important are:

  • Customer Satisfaction: Customers who feel they are getting good value are more satisfied and loyal.
  • Pricing Strategy: Knowing the perceived value helps businesses set prices that attract customers and increase profits.
  • Competitive Advantage: Higher perceived value can make a product stand out from competitors.4


Consider a high-end smartphone brand.

The perceived value of its smartphones is not just in the device’s functionality but also in its sleek design, brand reputation for innovation, customer service quality, and the status symbol it represents.

Customers who perceive high value in these aspects are more likely to purchase the smartphone despite its premium price.

Related Terms


1. Kopp, C. M. (n.d.). Perceived value explained: What it is, why it’s important. Investopedia.

2. Sánchez-Fernández, R., & Iniesta-Bonillo, M. Á. (2007). The concept of perceived value: a systematic review of the research. Marketing theory, 7(4), 427-451.

3. Liza, U. (2022, October 22). Perceived value: What it is, importance, types + examples. QuestionPro.

4. Nancholas, B. (2023, November 20). What is customer perceived value?. Keele University – Study online.

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