Monday, August 18, 2008

Real versus perceived value

Marvin Miller's latest musings in the August 18 America in Bloom newsletter is a must read. Click here to view his comments. Pay particular attention to his "perceived" value comments.

Signaling perceived value is a key point in any successful differentiation strategy. The questions you must answer about these signals include:

  1. What mix of quality, price, service, convenience, and selection signals can influence perceived value?
  2. What signals work for your customers?
  3. Are multiple signals necessary?
  4. Does it depend on purchasing behavior, customer segment, or outlet(s) chosen, or all or the above?
Why does it matter? The greater the perceived value that higher the willingness to pay. Period.

America in Bloom is designed to increase perceived value by promoting nationwide community beautification programs through the use of flowers, plants, trees, and other environmental and lifestyle enhancements. AIB does this by providing educational programs, resources, and the challenge of a friendly competition between participating communities across the country.

The end result? Only a few things like improved quality of life, enjoyable end results, greater community involvement, recognition for volunteer efforts, inspired imaginations, beautified spaces, educational opportunities, shared ideas, and new friendships. Sounds like a good way to increase perceived value of our products and services to me.

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