On both sides of the board, Amazon comes in at #1. This came as a surprise to me because I don’t think of Amazon as a valuable brand. I think of it more as an Ebay-like site, only more reliable. I was recently making my wedding registry with Amazon, not because I thought I would get more value out of it, but because it was easier for my family to ship the gifts to us. Anyway, there were some things I saw at other stores that I wanted. I knew they would be pricey but I was surprised that they were considerably cheaper on Amazon than at the store I saw them at. I didn’t think much of it until I found out that Amazon was rated #1 for perceived value. It must be true for most of their products.
The next thing I noticed in this chart is that the number 2 spot for both the U.S. and global was a toothpaste brand, but one was Crest and the other Colgate. What surprised me even more was that the U.S. voted Crest as #2 (Colgate was #8). I always grew up thinking Colgate was the better value. There are many similarities in brands in the two lists, just in different order (for example Coca-cola is #6 in the global brands and #3 in the U.S.). I expected McDonald’s to be over on the U.S. side but I guess it’s not as valuable to us as Bud Light and Walmart.
Apple didn’t make the list even though it’s a good brand, simply because it’s known as being pricey. Google didn’t make the list either, but that’s because you can access it for free. Starbucks may be more desirable, but Folgers is the better choice when it comes to price and value.
So why does the perceived value matter to these top 10 brands? Well, now they know they can raise their prices to boost profits. I think it’s better for a brand to start off at a lower price than what it’s worth. After consumers realize the value that they’re getting with the brand, the brand can raise the price with consumers thinking they are still getting a great deal because they trust that brand.
Found on AdAge
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