Profits are not derived from the actual value of a product, which is objective and void of expectation from the consumer. Rather, profits are cultivated through the perceived value of a product. This is done by building a brand.

1) Become Known as the First for Something New

We live in a world where customers have a plethora of products to choose from and little time to decide which is best.A series of articles on Forbes.com discusses brands and how to create a memorable, lasting perception in the customer’s mind. One crucial aspect in creating perceived value that motivates the customer to buy your brand is to be new, and especially, to be the first. “At the time Netflix launched, the perception of Blockbuster was firmly established in the minds of most prospects as the “go-to” place to rent movies.   Netflix sidestepped that problem by creating a perception of itself as the “go-to” place to rent movies online. That was new.”

2) Be Exclusive

Studies show that “exclusive” brands are perceived as more valuable than non exclusive brands, even if the actual value is similar. According to a study on Measuring Perceived Value, “Consumers have symbolic needs or desires for products that fulfill internally generated needs for self-enhancement, role position, group membership, or ego-identification……Rolex watches, luxury automobiles, and first-class seats are some good examples.”

In this sense, building an exclusive brand through advertising and skilled product design leads the customer to purchase your product regardless of a higher price. Journal of Marketing references a few studies on pages 10 and 16 concluding that “price is but one of several potentially useful extrinsic cues; brand name or package may be equally or more important, especially in packaged goods (pg 16).”

3) Prime Consumers with Mental Shortcuts

According to Mountainview Learning of University of London, Heuristics, or mental shortcuts that help people manage the huge amount of incoming information from their environment, take credit for this. According to, we use heuristics when “we equate expensive products with higher quality. We classify things according to a few key features and then respond automatically and without thinking, when one or another of these features (or cues) is present (pg 6).“

Conclusion

Consumers use previous judgments formed about products they already know of to make what they perceive to be the most viable and appropriate choice. Symbolic needs such as those for status motivate them to make purchasing decisions based on image and prestige. Use perceived value principles to build your brand.