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: 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. At the same time, the price can impact the perceptions of value. For example, businesses that release special limited editions of existing products can sometimes create a sense of a higher perceived value, due to exclusivity and novelty, even if the product has the same real value as an existing item that sells for a lower price. Marketing Efforts
Businesses rely on marketing and public relations efforts to improve the perceived values of their products. When done effectively this allows them to keep prices steady and see sales increase, or raise prices to increase profit margins. Marketing efforts may address specific problems in perceived value, such as a recent product recall or a reputation for poor quality.