Psychology – A Level specialist option – Consumer Psychology | e-Consult
A Level specialist option – Consumer Psychology (1 questions)
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Model Answer:
- Definition of perceived value: the consumer’s overall assessment of the utility of a product or service relative to its cost.
- Expectancy‑Value Theory: Consumers weigh expected outcomes (benefits) against the perceived costs; higher perceived value increases the likelihood of purchase.
- Prospect Theory: Loss aversion means consumers are more sensitive to perceived losses (e.g., overpaying) than equivalent gains, affecting how value is judged.
- Application in retail:
- Price promotions raise perceived value by reducing the cost side of the equation.
- Bundling adds functional value, making the total package seem more worthwhile.
- Quality cues (brand reputation, packaging) enhance perceived benefits, shifting the value balance.
- Overall, perceived value acts as a cognitive shortcut that integrates multiple psychological processes, guiding the final purchase decision.