Perceived Value

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Dictionary Says

Definition of 'Perceived Value'

The worth that a product or service has in the mind of the consumer. The consumer’s perceived value of a good or service affects the price that he or she is willing to pay for it.

For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their products, producers may pursue marketing strategies to create a higher perceived value for their products.

Investopedia Says

Investopedia explains 'Perceived Value'

Perceived value is often used with perfumes, for example. Perfumes tend to be associated with a glamorous celebrity in order to create a mystique and perception of luxury. Alternatively, they may be the subject of elaborate and expensive advertising campaigns to create a strong image for the perfume. Consumers commonly do not realize that the costs of production for perfumes are relatively low. Thus, while the cost of production for perfume may be only a few dollars, the perceived value of a perfume can be far greater. 

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Search results for

'Perceived Value'

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    http://stocks.investopedia.com/stock-analysis/2009/Crucial-Lessons-For-Post-Recession-Retailing-WMT-TGT-ANF-ARO1130.aspx
    ... crisis doesn't represent a cycle; it represents a reset." The Wal-Mart market share
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  • 5 Common Mistakes Young Investors Make

    http://www.investopedia.com/articles/younginvestors/09/common-mistakes-young-investors.asp
    ... If an asset is trading at half of an investor's perceived value, there is
    a reason and it is the investor's responsibility to find it. ...

  • 4 Pricing Strategies That Increase Your Spending - Investopedia. ...

    http://financialedge.investopedia.com/financial-edge/1111/4-Pricing-Strategies-That-Increase-Your-Spending.aspx
    ... everything in the bundle. As with any purchase, if your perceived value
    doesn't reflect the price you paid, you will feel ripped off. ...

  • What Is Money?

    http://www.investopedia.com/articles/basics/03/061303.asp
    ... Now that we've discussed why and how money, a representation of perceived value,
    is created in the economy, we need to touch on how the central bank (the ...

  • Ethical Investing: How To Research Ethical Investments ...

    http://www.investopedia.com/university/ethical-investing/ethical-investing9.asp
    ... The ACSI evaluates more than 225 companies in 47 household consumer industries,
    looking at customer expectations, perceived value, perceived quality, customer ...

  • What Are A Stock's "Fundamentals"?

    http://www.investopedia.com/articles/fundamental/03/022603.asp
    ... involves looking at any data, besides the trading patterns of the stock itself,
    that can be expected to impact the price or perceived value of a stock. ...

  • For Maximum Market Returns, Get Creative With Hedges

    http://www.investopedia.com/articles/trading/09/creative-hedges.asp
    ... Most individual investors make very simple decisions when investing - they
    either buy or sell a stock based on its perceived value. ...

  • AIG Reduces Hot Air Emissions

    http://stocks.investopedia.com/stock-analysis/2008/AIG_Reduces_Hot_Air_Emissions_AIG.aspx
    ... facing a regulatory probe to examine whether the company was overstating the value
    of its credit default portfolio to prop up the company's perceived value. ...

  • Economic Factors That Affect The Forex Market

    http://www.investopedia.com/articles/forex/11/economic-factors-affecting-forex.asp
    ... The political landscape of a nation plays a major role in the economic outlook for
    that country and, consequently, the perceived value of its currency. ...

  • 6 Tips For Renting An Apartment

    http://www.investopedia.com/articles/younginvestors/08/rent-apartment-within-budget.asp
    ... 2: Avoid Choosing a Home Based on Perceived Value You can get a great deal on an
    apartment with vaulted ceilings and an island kitchen, but the neighborhood ...

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