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Under a Creative Commons license Open access AbstractThis study delves into consumers’ privacy valuation, modeling the privacy calculus as a mediating construct and aiming to investigate the factors that possibly influence the perceived costs and benefits thereof. A reverse auction was conducted within a real-life experimental field setting, which enabled the researchers to control the consumer decision-making process for customer-perceived value. The results highly support the conceptualization of the cost–benefit calculus as a mediating construct. The findings indicate that consumers distinguish between the positive and negative consequences of personalization when they determine the value of their data. Furthermore, the findings prove the important relationship between customer-perceived value and consumers’ data valuation. The findings show that negative elasticity of the suggested bid amounts to a change in usage intensity. This study substantially enhances the academic understanding of consumers’ decision-making processes when exchanging data for benefits. KeywordsConsumers’ privacy valuation Willingness to sell data Reverse auction Privacy calculus Cited by (0)David Fehrenbach is a researcher and entrepreneur from the University of Münster in Germany. His field of research focuses on online privacy and data personalization, aiming to determine how to optimize targeted advertising protecting personal data. His work has been submitted to scientific conferences and disseminated in publications such as the ATP magazine and the dpunkt-verlag. Carolina Herrando has a PhD in Business Administration and is Researcher in Digital Marketing at the University of Twente in the Netherlands. Her research interests are in the fields of online consumer behavior and digital marketing, with a particular focus on social commerce websites, engagement and optimal customer experience, which may be created on the web. Her work has been published in journals such as Internet Research, Electronic Commerce Research, International Journal of Information Management, Journal of Electronic Commerce Research and Online Information Review. © 2021 The Author(s). Published by Elsevier Inc. What Is Perceived Value?In marketing terminology, perceived value is the customers' evaluation of the merits of a product or service, and its ability to meet their needs and expectations, especially in comparison with its peers. Marketing professionals try to influence consumers' perceived value of a product by describing the attributes that make it superior to the competition. Key Takeaways
Understanding Perceived ValuePerceived value comes down to the price the public is willing to pay for a good or service. Even a snap decision made in a store aisle involves an analysis of a product's ability to fulfill a need and provide satisfaction compared to other products under different brand names. The work of the marketing professional is to enhance the perceived value of the brand they are selling. The pricing of products takes perceived value into consideration. In some cases, the price of a product or service may have more to do with its emotional appeal than with the actual cost of production. Even a snap decision made in a store aisle involves an analysis of a product's perceived ability to fulfill a need and provide satisfaction. Types of Perceived Utility ValueMarketers who want to influence the perceived value of a product define its attributes in terms of its utility, or the extra benefits and values that the customer expects to get in using it. The perceived utility of many products and services may differ widely even among similar or virtually identical products. There are five types of utilities that companies aim to create through marketing campaigns for products:
Special Considerations of Perceived ValueA company's brand is meant to communicate a set of expectations associated with its products or services. That's why a well-established brand can command a higher price than its generic equivalents. Advil and Motrin both contain ibuprofen, but both brands are priced higher than generic ibuprofen. Luxury goods, however, carry the perception of value to another level with the addition of prestige. The highest value of luxury goods is not associated with their utility but with the prestige that owning and using it entails. The perceived value of a Rolex watch is not based on its functionality but with its image as a mark of personal success and refined taste. At the opposite end of the scale, some brands are marketed as smart bargains. The perceived value of a product may be its low price in comparison with competitors of equal quality. What is perceived benefits and perceived costs?Perceived costs include money, time, and labor. When comparing the difference between perceived benefit and perceived cost, if the difference is positive, customer perceived value is high, meaning customers will buy a product or service.
What is perceive benefit?The perceived benefits construct is defined as an individual's belief that specific positive outcomes will result from a specific behavior.
What is a perceived costs?The perceived cost of an activity is defined as the unit cost which a consumer thinks he incurs by undertaking a particular activity. A consumer's expenditure consists of direct price and non-price cost elements which we assume to be independent.
What is an example of perceived value?Cold and cough medications are good examples of perceived value in a competitive environment. Since many of the ingredients among competing brands are identical, the firm selling the product must build a subjective perception of their product that makes its product seem unique.
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