Brand Value: In the Eye of the Beholder

Perception is sometimes reality. In our brand-driven world, the value people place on brands (i.e. the perception of what price they may be willing to pay as a result of a brand’s value to them personally) differs as widely as the Mississippi River.

I’ve come to understand a lot about consumer luxury goods in my career—whether understanding the mindset and price point for an everyday luxury like Grey Poupon, or higher-end watches and jewelry you might find at Tiffany.

Recently, my home was robbed.

It was a typical quick entry and exit, and today’s burglar has a specific target for what they are stealing. Jewelry is usually high value, portable and can be easily moved at the local pawn shop. I found it interesting, after my blood-pressure returned to normal, the types of things that weren’t stolen. Manolo Blahnik shoes, Coach purses, Armani and Hugo Boss suits, Taylor and Gibson guitars. Clearly, the garden variety, scummy burglar doesn’t take items like these, possibly because they don’t know the cost or value. (The police actually related they are too bulky to carry, too.)

Now what is interesting in the brand perception model is how the insurance companies “value” brands. Put more simply, they don’t.

The police advised, and it was later confirmed by my insurance agent: the insurance company values a lost piece as equal to its current value, meaning it’s worth is determined by what you could buy it for at a tag sale/flea market. Great.

Tough on my psyche as a Brand Evangelist and even tougher as a person who had several thousand dollars worth of goods stolen. Not to mention they also had a lot of sentimental value, too. Basically, I care about sentimental value—Allstate doesn’t.

There are strongly internalized intrinsic factors that brands have that sometimes just can’t be articulated or measured. I remember when I had to switch from Mac to PC. I demanded a Dell with an Intel Pentium II processor. Why an Intel processor, my IT guy asked? I literally had NO logical or rational answer. But, I was convinced that the Intel brand was one that would deliver fast, reliable high quality. So for me, enough said.

We make these brand decisions—consciously or unconsciously, rationally or emotionally, on factors like brand values each day.

I guess I am thankful that the burglar wasn’t as discerning about all of the brand choices he had when he robbed us. Otherwise, my wife would still be mourning the loss of her Manolo’s right now.

By the way, I just invested in a new brand…it’s called ADT.