Wednesday, January 27, 2010

Customer-Perceived Value

Customer-perceived value is defined as "the customer's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers (page 15)." Customers often do not judge values and costs accurately or objectively, rather they act based upon their perceived value of the product. Therefore, marketers should work hard to attract and retain customers by offering the highest customer-perceived value.

Nike, a well-known brand of today, endorsed in professional NBA player Michael Jordan and created a special line of shoes called the Air Jordan(s). Nike seems to understand all too well the need to develop strong customer-perceived value.

With commercials of Michael Jordan doing the "impossible," who could resist such hype? In addition, Air Jordans released a limited edition every year with a set amount available. I have personally seen these shoes go for more than $500.00 on eBay. In reality, do Air Jordans really make you become a better basketball player? Does it actually help you run faster, jump higher, and do the impossible?

In the end, all the hype about the line of Air Jordans as well as the limited edition Jordans, are consumer-perceived. This product is perceived to have more benefits then its competitors and consumers are willing to pay the higher price in order to attain it.

Below are the special edition "Space Jams"

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