The Customer’s Perception Is the Reality, Essay Example

Customer Perceptions

Business trainer Kate Zabriskie claims that customer’s perception is the reality for business(Walter, 2014) and she could not have been more right because when it comes to customers, actual facts do not matter but what the customers believe to be true. Thus, it is no surprise individual businesses spend millions and sometimes even billions annually in order to develop positive brand perceptions in customers’ minds.

It is important for businesses to understand customers’ perceptions in order to increase the probability of meeting their expectations. When customers engage in purchase decisions, they compare the cost of the product to its perceived value(Recklies, 2006). The probability of a customer doing a business in higher if the perceived value of the product exceeds or at least matches the price he is expected to pay. For example, a customer may think of McDonald’s as a fast food retailer that sells food and drink items at affordable prices. Thus, McDonald’s is more likely to offer coffee products that are affordable by the masses as opposed to premium-priced coffee products from Starbucks. Meeting or exceeding customers’ perceptions in order to succeed doesn’t only seem a logical thing to do but is also supported by research studies. A research survey found that 70 percent of Americans are willing to deal more with companies that treat them well and 59 percent of Americans are willingto switch for a better experience (Cassidy).

Competition has been growing and it is becoming more and more important for businesses to achieve differentiation from the competition. Thus, it is even more important for businesses to influence consumers’ perceptions in order to create competitive hurdles against the competition. Wal-Mart is a great example in this regard. Through decades of marketing and competitive strategies, it has developed perceptions in consumers’ minds that it offers the lowest prices which explain why it is the largest retailer in the world.

References

Cassidy, B. (n.d.). The customer’s perception is the reality. Retrieved July 10, 2014.Web.

Recklies, D. (2006). Understanding and Managing Customer Perception. In E. Executive. ICFAI University Press. Print.

Walter, E. (2014, March 4). 40 Eye-Opening Customer Service Quotes. Web.