Customer Perceived Value (CPV)

Customer perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Perceived customer value is a marketing and branding related concept that points out that success of a product is largely based on whether customers believe it can satisfy their needs. This phrase emphasizes that when a company develops its brand and markets its products, customers ultimately determine how to interpret and react to marketing messages. Companies spend significant time researching the market to get a sense of how customers think and feel.

Examples:

Nike, a well-known brand of today, endorsed in professional NBA player Michael Jordan and created a special line of shoes called the Air Jordan(s). Nike seems to understand all too well the need to develop strong customer-perceived value. 

With commercials of Michael Jordan doing the "impossible," who could resist such hype? In addition, Air Jordans released a limited edition every year with a set amount available. These shoes go for more than $500.00 on eBay. In reality, do Air Jordans really make you become a better basketball player? Does it actually help you run faster, jump higher, and do the impossible?

In the end, all the hype about the line of Air Jordans as well as the limited edition Jordans, are consumer-perceived. This product is perceived to have more benefits then its competitors and consumers are willing to pay the higher price in order to attain it.