Traditionally, price refers to the monetary value the customer pays for a product or service.
But, a consumer also spends time and effort searching for information and evaluating the brands online or offline before purchasing.
The consumer might also travel long distances to purchase branded furniture.
In these contexts, price is the total sacrifice the consumer makes to purchase.
It includes the monetary cost and non-monetary aspects like time, effort, feedback, and advocacy exchanged for the purchase.
As a result, businesses must understand the importance of the value customers perceive in the overall exchange.
For instance, when customers buy an Apple iPhone, the perceived value extends beyond functionality to include status and Apple's ecosystem.
In a separate scenario, a consumer short of butter while cooking would choose a costlier convenience store nearby over a distant discount store.
Here, the value is the time saved, which holds greater significance than the higher cost.
Customers perceive value when a product or service's benefits, whether functional, emotional, or social, exceed their overall price.
