Brands and love brands in the tourism sector
The value an individual perceives in a product or service borders on the metaphysical; it is a multifaceted concept that focuses on how customers evaluate the benefits of a product or service in relation to its cost. This perception is crucial, as it directly impacts consumers' purchasing decision and thus business success. Let's explore different approaches:
Subjective evaluation: the perception of value is inherently subjective and varies among different consumers. It is based on individual evaluation of what is received (benefits, quality and satisfaction) versus what is given in return (cost, time and effort).
Cost-benefit ratio: in theory, the perception of value is not limited to the monetary price, but also includes other costs, such as time and effort, compared to the perceived benefits of the product or service.
Expectations and experiences: the perception of value is influenced by the customer's prior expectations and past experiences, both with the specific product and with the brand.
The perception of value is crucial and yet difficult to quantify, since the psychological component, even the perspective or point of view from which the product is judged, depends on subjective and mutable variables over which we have little control. If we manage to steadily increase the perception of value, we will not only be able to differentiate ourselves in our respective markets, but customer loyalty will also become contagious. Becoming a love brand through this continuous revaluation means assured long-term success. Let's look at the components that can be broken down into this complex concept:
Product or service quality: a high quality product increases the perception of value. This is where product innovation comes into play, a continuous improvement to meet the needs of each customer.
Price: a crucial component in the perception of value. Lower price does not always mean higher value; sometimes higher prices can translate into higher quality.
Customer experience: The overall customer experience, including customer service and product usability, also influences the perception of value. Working to improve the experience, in every way, is a key element.
Brand and reputation: the strength and reputation of a brand can significantly improve the perception of value. Marketing and communication are key tools to achieve this. Better than creating a communication campaign, however, is to make the customer experience an enhanced value proposition, a real challenge.
What about sustainability?
In an increasingly unstable world, marked by extreme weather events, social inequalities, migration crises and complex geopolitical situations, people feel that their sense of security and certainty is threatened. These global changes and multifaceted challenges generate growing anxiety and concern about the future, at the personal, community and global levels.
The uncertainty caused by these factors has led many people to reconsider fundamental aspects of their lives, such as their priorities, values and the way they interact and relate. There is a growing desire to seek stability, whether through community connection, taking refuge in strong personal relationships, or participating in movements that seek solutions to these challenges.
In the political and social sphere, this sense of instability has led to an increase in activism and citizen participation. People are seeking a stronger voice in the decisions that affect their lives and future, which is reflected in a greater interest in politics and public policy. On the economic front, global instability and uncertainty are also redefining consumption priorities. There is a growing trend towards conscious and responsible consumption, with more people interested in the origin and impact of the products they buy. Finally, on a personal level, this sense of instability is leading many to look for ways to strengthen their emotional and mental resilience.
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Culture and Conscious Art Award 2024
MANDARIN ORIENTAL RITZ, MADRID
Through its cultural patronage project, Mandarin Oriental Ritz promotes the preservation and dissemination of artistic heritage in Madrid. Its commitment includes investing in the conservation of masterpieces and supporting emerging talents with the aim of enriching the city's cultural heritage and promoting conscious art as a fundamental value in society.
All of this creates a new context in the perception of the value of products and services. If we succeed in getting our customers to perceive not only the material and economic value of what we offer, but also to see them as genuine solutions to the fundamental problems we face as a society, then, and only then, will we have succeeded in considerably increasing the value of our products, as well as the profitability and resilience of our company.