February 23, 2024

What Is Customer Perception and How Does It Affect Your Business?

The process in which individuals receive, organise and interpret information in order to attribute some meaning to it. Perception is unique to each individual, and may be influenced by internal factors such as beliefs, needs and expectations or external factors like the current environment or experience.

Customer perception is an intangible concept that affects your customers' buying decisions and their willingness to continue doing business with you and recommend your products to others. It's based on every direct and indirect interaction that they have with your company, from the way their questions are answered to the quality of your product or service.

Consumers form their own perceptions of brands and companies through social interactions, brand associations, and a variety of other influences that can't always be controlled by the business. These influencers include pricing, quality, reviews, and even their own experiences with the company.

These perceptions can have a significant impact on the future of your business. For example, a disgruntled customer can leave your business for good, even after just one bad interaction. That loss may seem small - just a single subscription or a few negative posts on social media - but it could end up costing you a lot more in the long run.

Research has shown that the more congruent your brand is with the perceived image of an individual, the more likely they are to purchase from it. For instance, someone who perceives themselves as a "fashionista" is more likely to buy high-end fashion brands, while avoiding brands that are associated with more basic or casual styles. This is often referred to as self-image congruity.

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