Title: Real Value vs. Perceived Value | Small Business - Chron.com
Headings: Real Value vs. Perceived Value
Real Value vs. Perceived Value
Definitions
Factors
Impact
Marketing Efforts
References

Content: Perceived value is a more abstract measurement that represents how much customers feel a product is worth. Either measure of value can be higher than the other, and both types of value can change over time. Factors
Real value is generally easy to measure. A business must account for the costs of labor, raw materials, shipping, marketing and product development, which allows it to calculate the product's real value. Perceived value is much harder to determine. Factors such as scarcity (including artificial scarcity), marketing efforts, novelty and brand associations all play into perceived value. For example, two businesses may sell similar cars that cost the same amount to produce, giving them identical real values. However, one car will likely have a higher perceived value if its maker has a reputation for reliability, and if the car at the center of a national marketing campaign that uses celebrities and the suggestion of exclusive luxury to appeal to potential buyers. Impact
The impact of real and perceived values, and the differences between them, are manifest in sales results and how businesses price their products. A higher perceived value will lead consumers to think that a product is better than other items with the same real value selling for a similar price.