Something as relaxing as having a coffee at your favourite establishment at a fair price becomes a trip to inflation when you are at the airport. You can literally go from a $3 premium coffee on the street to a $6 burnt coffee if you order it at the airport.
Despite the drop in quality that exists, you have no choice but to accept that option (or not drink coffee), because at airports they control prices thanks to a significant element: scarcity. The inability to choose another option revalues the service and changes their perception of value, since they are not selling you a coffee, they are selling you “the” coffee.
The concept of value perception not only encompasses the price we are willing to pay for a product or service, but also the importance and usefulness that we subjectively assign to it. Value perception is an individual’s subjective evaluation of the importance and usefulness of a product or service. influenced by factors such as quality, price, brand, and socioeconomic or emotional context.
Exploring the perception of value is entering a field where branding and the company meet, revealing how our emotions and beliefs shape the way we value what surrounds us.
To better understand the influence of branding on consumer perception, we are going to analyze real cases in which this perceived value has been increased through the product or brand.
Diamonds
Diamonds have not always been the universal symbol of wealth, status and commitment that they are today, but were instead considered a rather common mineral.
This changed after a campaign started in 1947 by De Beersa dominant company in the diamond market.
De Beers launched the campaign “A Diamond is Forever”which revolutionized the perception of diamonds by associating them with eternal romance and marital commitment.
This campaign had two main effects:
- First, it created artificial demand by emotionally associating diamonds with love and marriage.
- Secondly, it discouraged the resale of diamonds, since since De Beers It was suggested that a diamond should last and be preserved for a lifetime.
In this case, the perception of the diamond was key to increasing its value in the market. This increase in value would subsequently be projected to all the brands and companies that are dedicated to the commercialization of diamonds.
Luxury Bags and its Branding
Another example is luxury bags, which are not only considered a fashion item but have become products in which you can invest.
This means that you can purchase a luxury bag with the intention of selling it later for a higher price than what you initially paid.
The particularity of this case is that the perception of value has not been altered in the product itself, the bag. Rather, it is the brands that sell bags considered luxury goods (due to the brand’s reputation, quality, etc.) that revalue the product.
That is, it is the reputation of the brand that gives value to the bag, not the bag to the brand, as is the case with diamonds.
A curiosity about this example is that luxury brands have specialized in the perception they want to generate in their consumers: people consume one brand or another depending on the emotions or sensations they want to experience.
Not all luxury brands offer the same: Hermès sells elegance and craftsmanship, while Balenciaga focuses on offering modern and avant-garde style.
We have analyzed two situations where branding has played a crucial role in boosting the sales of a business through these 2 points:
- Elevating the collective imagination around the product, linking it with celebrations, status or marriage.
- Creating a solid brand reputation that supports the product.
Branding is a double-edged tool. It can work, as in this case, to create significant change and elevate perceptions of value; but it can also do just the opposite, overshadowing a good product because of a bad reputation.
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We must not overlook that influencing purchasing decisions and public perception entails a moral and ethical responsibility: not everything is allowed. It is crucial that companies build their reputation on solid and authentic foundations, avoiding any deception. Brand promises have to be in harmony with ethical, transparent and sustainable business practices over time, because, as you know, with great power comes great responsibility 😉
