Why these contradictions? The reason is simple and is that the perceived value that a consumer assigns to a product does not always equal the sale price of this, hence, as consumers we buy cheap, average and premium products according to the value they provide us.
Speaking of consumer prices, in strict theory, technological efficiencies will lead the market to lower prices, not increase them. So what will happen to brands looking for more value? Will the consumer achieve his goal of always having low prices?
From my point of view, the reality does not always resemble the theory, and it is that the constant innovation and the value that consumers attribute to the goods that satisfy their consumption needs will increase compensating these efficiencies and giving rise to the valuation o ‘ premiumization ‘of mass consumption.
After all … Who wants to accept that their needs are worth less and less? On the contrary, the consumer, within a system of market capitalism, always aspires to think that he, his needs and, therefore, his satisfiers are worth more and more.
Now, we already said that not all products have the same value for everyone. The perception varies by type of consumer and according to the circumstances of each one. A crude but very clear example is the following. To say that something (20 pesos) is “expensive”, we compare it with something (10 pesos) that is “cheaper”; Thus, to say that something (20 pesos) is “cheap” we compare it with something (40 pesos) more “expensive”.
As you can see, this logic turns out to be somewhat illogical, showing that these very basic and superficial conversations and comparisons focused on price lose their meaning when we talk about value.
So let’s define value and put some common unit of measure both for manufacturers and brands and for consumers. Is this possible?
Yes it is. For me, this common measure is the number of “buying and consuming occasions”. The more purchases and consumption are made of a category and the greater the proportion that is made through a brand, the greater the real value that the product has for the consumer.