The Power of Perceived Value in Marketing
Despite my efforts to downsize and simplify, I can’t help but notice that my closet is somewhat of a time capsule. The vast majority of my items were purchased online and on sale. As I scan through the cottons, polys, and silks, I can not only recall when and where I bought nearly everything but also who I was when I purchased them.
Then we get to my handbags. Most of them have been casually tossed in a bin for me to easily access. However, resting on a shelf above are the "crown jewels." These purses are displayed like fine art, kept safely in their branded canvas cover to protect them from the elements (dust). Merely taking a bag out of their protective cover rewards me with that fancy leather smell of luxury. While I don't regret buying them, I wouldn't buy them today.
Why would I spend so much money on those bags?
Well, somewhere in this world, there is a marketing team doing an incredible job of communicating in a manner that persuaded and evoked emotion from me. Sure, the quality and design of the bags were nice. But that is not what I paid a premium for or where I saw the value. During my days of fancy bag buying, I saw these accessories as a status symbol of beauty, art, and success. These were all things that I wanted people to think of when they saw me.
Get the bag, get the credibility. The boutique got my money and I got to walk out of there feeling like a million bucks. It was without question a mutually beneficial exchange.
But fast forward time and now a few years have gone by since I indulged in such a purchase and my “smile lines” are my most frequently worn accessory these days. I’ve grown to discover that I do not need the designer bag to have those desirable attributes. I care substantially less about what others think of me and not at all about those who use expensive labels as their barometer of judgment.
What I find interesting about this anecdotal story is that it illustrates not only the impact that the perception of value has but that it varies per person and can change as that person evolves. Smart businesses have realized they are shortchanging themselves if they are only marketing their actual good or service. They know they can increase their bottom line by marketing and selling the perceived value outside of the product itself. This can be particularly profitable with luxury brands.
Just ask Chanel.
