Question

How is the consumer's perception of value formed? Are all consumers aware of all that goes into making the finished product available at the retail stores or for online purchase?

Answer 1

A consumer’s understanding of value cannot be determined to be absolute as the needs, as well as the views of the different consumers, are different, we can, however, approximate their perception of value as:-

1. Quality

Which can be considered as the material, how good it is at solving a problem as well as the design principles.

2. Cost

Which can be considered as having a direct relation to the factor of satisfaction and value.

3. Assurance

Which can be considered as being factors such as warranty, guarantee as well as customer support provided by the brand.

4. Added values

Such as where the goods are sold, how professional the staff is, which retailer stocks it.

2. No, not all consumers know what goes into making these values for the products present in the market. We can say that some customers are aware of the cost to quality ratio that a company can provide while others just understand word of mouth promotion, recommendations or depending on the brand favorability, image and ease of access, some consumers make decisions for their purchase utilizing these factors.