B 2 C

B 2 B

Estera Kaszen

Managing & New Business Director 

👋 Hi. We are SCREENS,
the digital video 
marketing agency

Supercharge your business with video marketing that effectively combines effective sales with consistent brand building. 
We relentlessly use: fresh creativity, the latest trends with measured, reported marketing effectiveness and tangible business results.

Our original thesis here is that sales happen in peculiar space "between" Value Proposition and Perceived Value.

In this article, we embark on a journey to unravel the intricacies of the sales process. We will explore the delicate balance between Value Proposition and Perceived Value, examine the influence of Social Proof, and uncover the captivating allure of Status Narratives.

Armed with these insights, you, as a business professional, marketer, or salesperson, will be equipped with the knowledge to elevate your sales skills.

To better understand what is Value Proposition watch this video

Delicate balance between Value Proposition and Perceived Value

Unlocking the key to successful sales requires navigating the intricate realm that exists between the realms of Value Proposition and Perceived Value. Here we delve into the core of what drives consumer decisions and unveil the factors that propel sales to new heights.

Value Proposition is value designed be the product or service creators, i.e. "I think french fried potatoes will be extremely tasty and satiating",

Perceived Value on the other hand is somethings consumer subjectively perceives, depending on many factors like for example context, i.e. "I will eat french fries now, cause im in France, I want to celebrate some french food, and I am dead hungry after walking through 3 galleries today".

To close sales or transaction other supporting factors are sometimes needed. Such supporting factor can be Social Proof, i.e. "there is a looong queue here, it has to be good, cause they have already decided (I don't have to spend my time and energy on intricate judgement process).

Other supporting factor are, let's call them, Status Narratives. We can think of price as narrative, or especially Status Narrative, i.e. "this french fries are quite expensive, it's a proper way to enter the Parisienne lifestyle!".

The concept of Perceived Value in primates

The concept of perceived value is an important one for both animals and humans. For animals, the value of an object or resource is often tied to survival, while for humans, perceived value is more complex, tied to social and cultural factors as well as personal preferences.

Chimpanzees, for example, have been shown to have a sophisticated understanding of the value of different objects and resources. In one study, researchers presented chimpanzees with a choice between two tools: one that was good for cracking nuts and one that was good for digging. The chimpanzees quickly learned the value of each tool and selected the appropriate one based on the task at hand.

Similarly, in the wild, chimpanzees have been observed engaging in complex social transactions. For example, females have been known to trade sex for meat, a valuable resource that is difficult for them to obtain on their own. This suggests that even animals have a sense of the perceived value of different resources and are willing to engage in transactions to obtain them.

Perceived Value of a deal in humans

Humans, of course, take the concept of perceived value to a whole new level. Consider the example of French fries - a popular fast food item that is widely enjoyed around the world. The perceived value of French fries can vary widely depending on the context and situation.

For example, a serving of French fries might be seen as a treat or indulgence when consumed as part of a meal at a restaurant. However, if consumed in excess or on a regular basis, French fries can be seen as unhealthy or even harmful. Similarly, the perceived value of French fries might be different depending on factors like brand, packaging, and price.

In some cases, the perceived value of French fries can be influenced by social and cultural factors as well. For example, in some cultures, French fries might be seen as a status symbol or a marker of sophistication, while in others, they might be viewed as a symbol of Westernization or cultural imperialism.

Interplay of complex factors affects of what from designed Value Proposition of a product/service actually is being filtered with Perceived Value in mind of a consumer

In all of these cases, the perceived value of French fries is shaped by a complex interplay of personal preferences, cultural norms, and social context. Just like chimpanzees and other animals, humans have a sophisticated understanding of the perceived value of different objects and resources, and we are willing to engage in complex transactions and social interactions to obtain them.

Financial crises rooted already in Capuchin's world

The experiment

On a secluded island off the coast of Puerto Rico, a captivating simian experiment has recently unfolded, shedding light on behavioral economics, the psychology of risk, and the recurring financial crises that plague our economies. This extraordinary study involved six Capuchin monkeys.

This thought-provoking experiment involving Capuchin monkeys has provided remarkable insights into the dynamics of perceived value versus value proposition in our transactional society. The captivating study sheds light on the profound impact of perceived value on our decision-making processes, challenging conventional notions of rationality in economic transactions.

The experiment trained six Capuchin monkeys to exchange metal tokens for food within a makeshift marketplace. Researchers offered different foods at varying prices, observing the monkeys' shopping behaviors.

The insight

Surprisingly, the monkeys displayed a remarkable tendency to shop at stalls where they received food at lower prices. The researchers found that even with minimal training, the monkeys instinctively sought to maximize the perceived value of their tokens. If an experimenter provided double the amount of food for the same token, the monkeys consistently favored that stall over others.

These findings underscore the fundamental role of perceived value in shaping consumer behavior. Just like the monkeys, humans are driven by the desire to obtain the greatest value for their money. The concept of perceived value, which goes beyond the tangible benefits of a product or service, can significantly influence our purchasing decisions in a transactional society.

Understanding the interplay between perceived value and value proposition is crucial in shaping effective marketing and pricing strategies. Businesses must carefully consider how their offerings are perceived by consumers and emphasize the value they provide. By aligning their value proposition with the perceived value of their target audience, companies can enhance customer satisfaction and drive sales.

The blind pursuit

Moreover, this monkey experiment holds broader implications for our society's economic landscape. The study suggests that the pursuit of perceived value may contribute to the irrational behaviors that underlie periodic financial crises. 

As we navigate an increasingly transactional society, the lessons gleaned from these Capuchin monkeys serve as a powerful reminder that the perception of value is a driving force in our decision-making processes. 

This behavior exhibited by the monkeys highlights a fundamental aspect of human decision-making, particularly when it comes to economic transactions. 

By focusing on obtaining more for their tokens, the monkeys unwittingly demonstrated an innate understanding of the relationship between value proposition and perceived value. This finding holds significant implications for our understanding of consumer behavior, as it underscores the importance of pricing strategies and the impact they have on purchasing decisions.

Value Proposition, Perceived Value and pursuit of money

A value proposition represents the unique combination of benefits and value that a product or service offers to consumers. It is a carefully crafted product-construct and message that communicates why a particular offering is superior to alternatives in the market.

When designing a value proposition, businesses strive to align their offerings with the perceived needs and desires of their target audience.
 

The insights gained from the monkey experiment highlight the significance of perceived value in consumer decision-making.

While the tangible aspects of a product or service (such as features, quality, and price) contribute to its Value Proposition, the Perceived Value goes beyond these factors. It encompasses the subjective perception of the benefits, satisfaction, and overall worth that consumers derive from the offering.

Communicate advantages to enhance Perceived Value

A well-designed Value Proposition takes into account both the tangible and intangible elements that influence perceived value. It aims to create a compelling narrative that resonates with consumers, addressing their specific needs and aspirations. By emphasizing the unique advantages and benefits of the product or service, businesses can enhance the Perceived Value and increase the likelihood of consumer adoption.
 

For instance, a company may offer a smartphone with advanced features, excellent build quality, and competitive pricing (tangible value). However, the Value Proposition should also highlight the intangible benefits, such as improved productivity, convenience, and status associated with owning the device (perceived value). By effectively communicating these advantages, the company can enhance the perceived value of the product, making it more appealing to consumers.
 

The designed Value proposition of a product or service plays a vital role in influencing consumers' perception of value. By crafting a compelling Value Proposition that aligns with consumers' needs and desires, businesses can enhance the Perceived Value of their offerings. This increases the likelihood of attracting and satisfying customers driven by the desire to obtain the greatest value for their money.

Final words

In conclusion, the concept of Perceived Value is an important one that operates across the animal kingdom, from chimpanzees engaging in social transactions to humans enjoying French fries in different contexts and situations. By understanding the complex factors that shape our perceptions of value, we can gain insight into the behavior of both animals and humans and the ways in which we interact with our environment and with each other.

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