Perceived Value in a Physical Delivery Digital Product

Profile picture of the author Scott Burton by Scott Burton Posted: 03/06/2012
There have been lots of conversations about perceived value. This is another one of sorts.

I realize that the factors vary, but I wanted to get some input. In IM, and in a number of other niches, there is the desire for instant gratification, which makes sense. I pay with my credit card or paypal account, and I can access the product NOW (or in minutes).

If you decide to provide your product as a physical media product (such as on CDs or DVDs) Which is likely to carry a higher perceived value:

1 DVD with audio, video and documents

or

4 CD Set (1 Audio CD, 2 CDs of videos and a CD containing the documents)

On the one hand, physical delivery of one DVD is more cost effective, but would the 4 CD set tend to command a higher or lower perceived value than the 1 DVD?

My GUT reaction would be that the CD bundle carries more perceived value, and here are my thoughts as to why.
  1. More Stuff
    Lets face it, the more "stuff" most people receive for their dollar, the happier many are. If you spend $20 on a DVD, that's a $20 DVD. If you spend $20 on a 4 CD set, that's $5 per disc, "what a bargain" can come to mind
  2. More Options
    With a DVD you pretty much need a computer, unless its all DVD video, in which case you can use a computer or DVD player. With an Audio CD as part of the package, you can throw it in the CD Player in your car, watch the VCD (Video CD) On your Computer or most DVD Players, and of course the documents on CD will still require the computer. But ALL of them can be used on your computer, some can be used elsewhere too.
  3. Variety
    While it might be less convenient to have to switch between discs, a lot of people like to have something to do. Switching discs is a small thing, but it's something. Likewise the fact that they can take the audio CD with them somewhere else (like the car) means they can get out to other environments, which means they may be able to get use out of it in more places.

I'm interested in knowing what other people think, and I realize the answer will vary from product to product.

[Comment: Hmmm... I'd thought it'd be a good start to a conversation. I guess so far no one has any thoughts to add?]
#delivery #digital #perceived #physical #product

  • Profile picture of the author paulie123
    paulie123
    Any of what you commented on can be true. Perceived value is in the eye of the beholder. One other advantage to a physical product priced between, let's say, $19 to $29, is that you will have fewer returns from a guarantee, simply because people will not want to inconvenience themselves for twenty, thirty bucks (or less) and return it. With downloads, a refund request is far too convenient and I would never offer one. My 2 cents.
  • Profile picture of the author Robin Blinds
    Robin Blinds
    I would choose using DVD over the VCDs.
  • Profile picture of the author Scott Burton
    Scott Burton
    Originally Posted by paulie123 View Post
    Any of what you commented on can be true. Perceived value is in the eye of the beholder. One other advantage to a physical product priced between, let's say, $19 to $29, is that you will have fewer returns from a guarantee, simply because people will not want to inconvenience themselves for twenty, thirty bucks (or less) and return it. With downloads, a refund request is far too convenient and I would never offer one. My 2 cents.
    True. I've been guilty of not returning something for a refund because it was inconvenient, or I didn't get to the post office to mail it out in time on occasion.

    I realized the perceived value component, and I would lean toward the inclusion of a physical element to the product definitely, because of the perceived value increase.

    I was hoping there would be a bit more discussion on the subject. The increased cost per product is actually quite low, and is offset by the increased pricetag. (instead of a $19 product it's a $29 dollar product, and you spend $2-5 out of the incoming payment to cover the physical product, so result is an income of $22-24 per sale instead of $19 per sale.)

    Originally Posted by Robin Blinds View Post
    I would choose using DVD over the VCDs.
    Would you care to elaborate on why?

    I was hoping for some discussion on the subject, see who shared my ideas, what they liked or disliked and why.

    The DVD its self has more perceived value perhaps than VCDs, but my thought was if it was appropriate to the product the versatility of having the audio separately available on a CD, it is usable in places where the DVD wouldn't be. And I was interested to know if that would likely be perceived as more valuable? (And it would be possible to use both a DVD and one or more CDs in a mixed product)

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