An interesting concept in consumer behaviour arises when we look at customer’s perceived benefits versus the resources these same customers must use in order to purchase a product or service.
Perceived Benefits
Consumers may get x, y, and z benefit from a product, however, they may only perceive that they are getting x benefit from a product. It is important for a marketer to be able to look at the beliefs the consumer has in relation to the benefits they will receive from a product, and what specific factors can influence this perception.
A good example of perceived benefits in action can be seen when looking at Patagonia, the somewhat environmentally-friendly clothing company. Patagonia associates itself with a social cause – that is, making the earth a healthier place to live. By doing this, Patagonia have successfully created an added perceived benefit in the mind of the consumer. This benefit is a social one, related to being associated with a brand that supports the health of the environment. All of a sudden, Patagonia has enabled their target market to move from seeing x benefit to x and y benefit. This is a very powerful practice, which moves beyond just associating one’s brand with a social cause.
For example, there are various different factors that influence a consumer’s decisions. By appealing to some of these factors, brands can increase perceived benefits. In particular, brands can make changes to appeal to:
- Culture
- Demographics, income and social status. For example, you can appeal to certain income groups by lowering or increasing your price. A good example of this can be found with wine. More expensive bottles of wine have more benefit in the consumer’s mind, even if that bottle is no different to a cheaper version. Information about this study can be found here.
- Motivations & Emotions. For example, if you can successfully make a consumer happy through an advertisement, they will perceive your product as one that has the added benefit of happiness.
These are just a few examples of how perceived benefits can be used.
Resources Cost & Relationship with Perceived Benefits
How does resource cost relate to perceived benefits, and what is it?
Resource cost is essentially the resources the consumer perceives as using in order to purchase a product or service. If the cost of the resources are greater than the perceived benefits, then the consumer will have less of a reason to purchase. Thus, increasing perceived benefits and reducing perceived resources costs is an appropriate option to better appeal to consumers.
An Example In Action
Top End Motorwerks uses professional clothing to increase consumer perceived benefits. As is described in the video above, by wearing professional clothing, consumers feel more at ease and their trust increases. This is because this sense of professionalism creates the idea in the consumer’s mind that they will be given the most top quality services, thus creating a greater benefit in their mind. This is just one example, of how consumer perceived benefits can be used in action.
Do you consider consumer perceived benefits in your business?
Consumer Behaviour 