CUSTOMER PERCEIVED VALUE – AN ESSENTIAL ELEMENT IN SALES MANAGEMENT

Abstract

Practical understanding by the producer of the way purchasers choose between various products that might satisfy a certain need constitutes a very complex and challenging problem. The concept of „customer perceived value” and the ratio between the product price and the perceived value come to clarify this issue and, moreover, these represent two great fundaments that underlie all economic transactions. If production and selling costs mark the price lower limit, customer perceived value marks its maximum limit. The objective of this paper is to highlight the essential elements underlying the customers’ perceived value, aspects regarding its communication and the correlation that should exist between it and the product price.

Keywords

• perceived value
• price
• total sacrifice
• objective factors
• subjective factors
• communication value