The concept of ‘perceived value’ has often been improperly distinguished from other related concepts – such as ‘values’. Value is the result of an evaluative judgement, whereas values talk about standards, rules, norms, or ideals that serve as the source for such an evaluative judgement. ‘Value’ indicates “trade-off between benefits and sacrifices”; what is more, an interaction between a customer and a product or a service (Payne and Holt, 2001). In contrast, ‘values’ are crucial personal beliefs that people embrace with respect to themselves and the goals for which they strive. ‘Values’ are therefore the inherent principles that are employed by an individual in making a preference judgement. These principles guide the behaviour of people because they reflect the desired ultimate end-states of existence (Flint et al., 1997, cited in Sanchez- Fernandez and Iniesta-Bonillo, 2007). Hence, it is apparent that ‘value’ and ‘values’ are not the same concept. However, despite the varying terms and definitions, the following attributes among these explanations appear to be the same (1) perceived value is integral to or interconnected by the use of some product, service or object, (2) perceived value is somewhat perceived by consumers rather than objectively determined, and (3) perceptions of value characteristically involve a trade-off between what the consumer obtains and what he or she sacrifices to attain and use a product or service (Sanchez- Fernandez and Iniesta-Bonillo, 2007).
The academic literature about consumer value barely touches on the influence of culture upon the process by which consumers assess value of products or/services for specific consumption contexts. Yet Johnson (1998), cited in Overby et al. (2005) argues that...
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... minimizing uncertainty, thus, consumers in high uncertainty avoidance cultures will view price sign as a more adverse factor than the consumers in low uncertainty avoidance cultures. Since price is considered as an indicator of monetary sacrifice during an exchange, this type of sacrifice is simply another expression of risk where the higher price implies a higher level of risk (Meng, 2011). Price works not only as a measure which directly and negatively relates to price perception, but also as a measurement of product quality.
Hence, when buying a product or/service, quality is an aspect that every consumer is apprehensive about, but difficult to estimate before a purchase. Price is therefore judged by many to be an overall indicator of quality, regardless of situations and products (Lichtenstein and Burton, 1989; Peterson and Wilson, 1985, cited in Meng, 2011)
We live in a new generation of buyers. Consumers used to be taught how products can help them fulfill their needs or reach goals and the benefits of the products were described to provide reasons for buying. Now consumers only buy if they identify therefore positive attitudes towards a brand of product should be taken in consideration to express a brands values as social groups influence consumers by sharing their own experiences and connections in their community. The value of a great shopping experience is rather found in the moment of consumption, rather that in the purchase of a product. Brands should understand that people do not buy only the products, they buy the services that the products provide too.
Individual’s consumption pattern and purchase decision are strongly influenced by cultural norms and values of the society he lives in (H. S. Kim & Drolet, 2003; Oyserman, Coon, & Kemmelmeier, 2002; Sun, Horn, & Merritt, 2004). Since individuals in collectivist society pay more attention towards harmony of the gro...
Different people have numerous elucidations of what is valuable to them. In the “Contingencies of Value” chapter by Barbara Herrnstein Smith she discusses the diverse ways in which various values are created, sustained and passed along. Part one of the article is the act of evaluation -- what it is we are doing when we evaluate an art work, a culture, a belief, a practice -- and her secondary topic is the meaning of value. She states that “value is “relative” in the sense of contingent (that is, a changing function of multiple variables) rather than subjective (that is, personally whimsical, locked into the consciousness of individual subjects and/or without interest or value for other people). Her text shows that we may not be able to bluntly
For durable and luxurious goods when deciding to buy these products, price is one of the most important factors to be considered as the price of these products are high. Therefore, people will compare the price among various shops and purchase from the shore that offers the best deal at the same quality.
Mooij,M de.2004.Consumer Behavior and Culture: Consequences for Global Marketing and Advertising. Sage, Thousand Oaks, CA.
The word “value” undoubtedly holds significant meaning to the human race. The life of a human is structured around how they are valued by society, their family, and thus themselves. Arguably, the value they are granted as an individual is based on what they value morally and ethically on a daily basis. When a person is born, they already have been provided with a foundation of values, stemming from their parents. A person’s value can either benefit, or potentially suffer from the way they are raised.
Mooij, M.de. (2004). Consumer Behavior and Culture, Sage Publications, Page 102, Page 119, Page 274, Page 275
A very important factor in the marketing mix is the price. Since a service is not physical, its value must be carefully thought out. The price is sometimes the first thing which tourists look at. Depending on the type of service, perceptions of value differ. The price can act as an indicator of quality. A low price may seem as an attempt to cheat the customer in some way. People expect quality to cost and are willing to pay a higher price for it. That is why the service provider must be aware of how much people would pay for his service and why.
Price is the values entirety that consumers trade for the advantages of having or utilizing the product or services. Different places and cultural have different spending culture. Therefore the price has to be relevant according to the product offer because it can reflect the image of a
...chase the product again, and are also inclined to say good things about the brand to others; the opposite applies to customers who are dissatisfied with the products. Value also affects post purchase behaviour, as research shows that 56 percent of Irish consumers agree, that if they purchase something that was not on sale, they feel like they have overpaid (Board Bia, 2012).
In an article called Cultural Factor Highly Influences On Consumers & Their Buying Behavior – In Indian Context, the basic characteristics of culture are described:
price as the major decision-making tool for customers (“Global Consumer Electronics”, 2013). This lack of
Ever since I was young, I have always tried to be friendly and sympathetic- to bring someone to smile an extra time in their day. Throughout my junior and senior year, I was captain of my high school's tennis team. For four weekends, one every month, our team held a tryout tournament. I worked the tournament desk, and greeted the incoming freshman, along with their parents, both with worried looks on their faces. Sitting there at the desk, I reminisced on the nerves I felt that dreaded day of tryouts, so every child that came to the desk to check in, I introduced myself, and welcomed them to the tournament. It was clear to see that I eased their nerves. Even if it lasted only for a second, I knew that my welcoming them helped them feel more at home at seemingly nerve racking event.
I understand the term customer value to define how customers weigh the benefits of individual purchasing decision against the costs of these products.