Have you ever wondered why people are willing to pay hundreds or even thousands of dollars for the latest Apple iPhone? Is it because of its advanced features and sleek design? Or is it because of something else entirely?
Let me tell you a story.
A few years ago, a friend of mine was in the market for a new phone. She had been a loyal Samsung user for years, but was considering switching to an iPhone.
When I asked her why, she couldn't really give me a clear answer. She just said that she felt like an iPhone would be "better." So, we went to the store to check out the latest models. As we were browsing, I noticed that my friend was drawn to the iPhone display. She spent several minutes picking up the phones, examining them closely, and playing around with the features.
Meanwhile, she barely glanced at the Samsung phones on display.
I asked her what she thought of the iPhones, and she said that they just felt "nicer" than the Samsung phones. She couldn't really put her finger on why, but she just had a better feeling about them.
Then I realized how powerful perceived value can be.
My friend was willing to consider switching to a completely different brand simply because she felt that the iPhone had more value than her current phone. And it wasn't just about the features - it was about the overall experience of owning an iPhone. You know that feeling nah!
Apple has been very successful at creating this perception of value around its products. From the minimalist packaging to the sleek design to the seamless user experience, everything about an iPhone feels premium. Even the price tag reinforces the idea that an iPhone is a luxury item that is worth paying more for.
Perceived value is a powerful driver of buying behavior. It's why people will wait in long lines for hours to be the first to get their hands on a new iPhone. It's why people will pay hundreds of dollars for a designer handbag that is functionally no different from a cheaper one, And it's why people will choose one brand over another, even if the products are very similar. Even in Churches we see this play out everyday.
As a business owner, it's important to understand the power of perceived value and apply it to your business. By creating a premium experience around your products, you can attract customers who are willing to pay more for that perceived value, And when you play around it, ensure to deliver on that value in order to maintain customer loyalty and trust.