Jewelry customers buy products and have expectations based on utility, function, and performance of the jewelry which is based as much on image and status as the contribute of perceived value. The perceived value of luxury products is important to all luxury companies, brands and products. Image and status are very important to all luxury brandsUtility relates to how a product’s benefits are derived. A watch might deliver utility as a time piece. However, with cell phones and computers and cars all offering the time the real utility of a watch might come from being a fashion accessory. So function refers to how an individual uses a product to gain benefit. Keep in mind if the customer does not perceive any value then no value exists. Product and brand performance are very subjective . . . and are based on perception. Customer satisfaction is often improved when managers attempt to manage the expectations of customers. When customers begin to have more realistic expectations of what a company and product can consistently do, expectations are more consistently met. Image value is very real in jewelry marketing. It is a mistake to think that image is not important. Every time you pay more for a branded product at the grocery store or clothing store you are demonstrating how you have been favorably impressive through image. If brand reputation is not important there would be no brands. Value relates to how price and brand/store name and reputation influence buyers’ perceptions and increase demand for the products.
Value has been recognized as the axiom of all marketing activities. Value has been stated as a cognitive-based construct which captures any benefit-sacrifice discrepancy in much the same way disconfirmation does for variations between expectations and perceived performance. When expectations are not met, value preceptions decline for the company and the brand.