Question

When evaluating a new product, customers decide that they are willing to pay a certain amount, more or less, than they would for similar products offered by competitors. This difference in perceived worth is called ______ value.

Answer 1

Answer: brand value

Step-by-step explanation: In simple words, brand value refers to the value that an organisation has earned on the basis of the perception that customers in the market have for them. Usually, brand value is created by the experiences that customers get while dealing with an organisation.

Brand value creates a strong customer base for the firm which results in less price elasticity for their product. Means, a company having brand value can charge extra price for a product than their competitors but customers would still stick to it.