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What is Perceived Value

Perceived Value

The most authentic explanation of Perceived value is Zeithaml’s definition which is

“the judgment of a product or service by consumers ideas of what is taken and what is given”.

In the services it is included the distinguish between what is receiving and what is transferring to gain a facility. Therefore, the meaning of this value according to the mobile and internet banking depends on the customers satisfaction towards its benefits and facilities they availed on using it. The concept is stated as the perceived value is based on facilities and advantages offered. Mostly people believe that benefits and sacrifices are same name of a same term.

The difference in these two terms can be negative and positive. The positive result is based on the consumers perceived values and the negative result depends on the consumer inefficiency to utilize that advantage. The advantages have the wants of consumers whereas scarifies includes financial and non-financial conditions. Financial conditions have prices of the services and non-financial conditions include time and effort benefits. In order to increase the consumers perceived value, banks must enhance the quality of their work, benefits and disbenefits of their services. In a theory named equity theory it is explained as a ratio between customers input to that of the suppliers output.

What is Perceived Value

The equity theory is related to the customer’s choice that what is correct, accurate or related to the perceived cost of the offering. Perceived cost includes payments in form of money and non-money scarifies for example: utilization of time properly, use of energy and taken on the stress by the customer. Although customers perceived value results as an estimation of the related rewards and scarifies related to the offer. Customer always demands to feel an equal treatment so that they can conclude the ratio of their inputs and outcomes must be easily compared to the ratio of outcomes and inputs explained by the company.

Most of the time customers measure a company’s progress report by relating it to the other’s companies in the market. Actually, the value is determined by the consumer’s perceived net trade off amount received from all the advantages and expenses taken to them from a product or service and its uses. A common perception about the definition of consumers perceived value is that: value for a customer is determined by its abilities of purchasing and utilizing of that product; value for a consumer concerned with the belief of the consumer which cannot be stated clearly by an organization; this value has too many concepts and it seems to be a transaction between advantages and scarifies by consumers offered by the buyer. Based on the observations of the definitions stated above consumers perceive value is as a consumers belief on the total benefits related to the opinions of what is taken and what is given.

Researchers also mentioned a healthy relationship between perceived values and needed to purchase something. Perceived value helps to maintain the honest image of an electronic business by decreasing a single person’s need to avail different services providers. When the perceive value goes down then customers will be more likely to go to the other businesses to enhance the perceived value, thus decreasing the honest image of it. Even those customers who are already agreed to the value do not follow the e business, when they feel that they are not getting the right amount of advantage of their money. Else, they find out other sellers to find a better offer. The customer gets satisfied when they believe that with the person’s business they are working at this time provides the best value as compared to others offered in the market. So this study explains that there are many strong effects on the relationship between customer’s trust and customer’s belief on the values.

Findings

Perceived value has a sharp effect on the customer.

This study also concludes the influence of intensity of value on customers satisfaction and trust.

Measurement of Perceived Value

  1. The bank charges an affordable fee.
  2. The bank provides best consumer services.
  3. The bank’s atmosphere will be acceptable.
  4. While staying in the bank I feel comfortable.
  5. I can trust on the bank counter for keeping my things for a while.
  6. I feel a trustworthy atmosphere at the bank’s clients and atmosphere.

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