Question

Question: “The more you focus on the value of your product or service, the less important price becomes.” Discuss that statement based on your understanding of consumer behavior, in particular, the ways that function, experience, cost, meaning, and elements of MINDSPACE influence consumer behavior by enhancing the perception of value. Use examples from class or your own assignment work to support your arguments. (1500 word maximum).

Answer 1

Its clear from the above concept that we are suppose to discuss regarding the importance of value and price of a product. Its always understood that the price alone can't win a product in the market. Customers need to buy a particular product or particular brand when ever they need. Here,a manufacturer or owner of the company should make sure that once a customer purchsed his/her product, then they should become the regular customers of that product and no way they should go for search for our competitors.

In this scenario, a manufacturer should always concentrate that how he can give the best product to his customers compared to that of his competitors and also should concentrate that what all positive benefits a customer can gain by using this product. Now its very clear that pricing alone cannot make the product a huge success. Its understood that value of the product also plays an important role in the growth of a product.

When value of a product is considered, as its not countable like the price of the product, how the same shall be quantified. It can be analysed by reviewing the benefits a customer is gaining by using the product. So always a company or manufacturer should concentrate to give maximum benefits to its customers by using their own products. This will be treated as the value of the product. Here the price may not be a constraint, if a customer is getting more values or benefits from a product, he/she will stick on to that product and the sales record of that product will be high compared to its competitor products.

A manufacturer/owner, rather than focussing only on pricing strategies, should concentrate in the value based benefit of the product also. For Eg :- lets consider the difference between the food processor and regualr mixer grinder of a same company - Mixer grinder is an electrical equipment which can be used to do all the mixing,powdering works in the kitchen, but a food processor can do a number of tasks than a single mixer grinder. It can do all works done by a mixer grinder and also can do much more tasks like juice making,chopping the vegetables,kneeding the dough etc. Here price of the mixer grinder is less than that of a food processor, but a customer always prefer a food processor compared to single mixer grinder. Eventhough the price of the food processor is high, a customer is getting more benefits from it than a single mixer grinder.

From the above example it is clear that, along with pricing the value/benefits that a customer gained from a product is also very important. This factor also can decide the growth of that product in the market or society.