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Perceived value

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Perceived value refers to a consumer’s assessment of the benefits of a product or service relative to the costs incurred, including intangible or non-functional advantages. This perception may differ from the actual value or the cost of production. It is essential for pricing, particularly in monopolies, because a price aligned with perceived value can generate significant profit margins.

Alternative Meanings:
  • Perceived value

    Customers' perceived value is defined by how they evaluate what they receive in exchange for their investment. This evaluation includes not only product features but also other perceived benefits, while perceived costs encompass more than just price. To quantify this concept, the balance between perceived advantages and disadvantages is commonly used.

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