Question

Explain the difference between real and perceived value.

Answer 1

This is also a concept we discuss in marketing.

Real value is the actual worth of the item. For instance, a $20 bill is worth just that $20. This is usually referenced to the raw materials in the product itself. If a meal costs $10 to make, the real value is the sum of the value of the individual parts.

Perceived value is the non-quantifiable value added by a product or service. The same meal that costs $10 to make, has greater impact  when prepared and has additional perceived value because a good meal provides an experience for the diner. It is the atmosphere, the ambiance, the service all make the "raw materials" worth more to the consumer.