Perceived Utility of Premium Power by High-tech Manufacturers

Abstract

The valuation of premium power based on perceived utility (PU, i.e., perceived effectiveness or satisfaction degree of customers) and their willingness to pay has been researched for years. One of the remaining challenges is the accurate evaluation of PU. PU is the foundation of premium power evaluation, and it is essential for the decision-making process of investments on premium power by high-tech manufacturers (HTMs). This paper presents a framework to effectively evaluate PU. In this framework, factors influencing PU were classified to be quantitative and qualitative. An indication system (IS) was then constructed based on those influencing factors. Finally, PU was evaluated by the IS, considering psychological perception and decision-making behavior of HTMs. The effectiveness of the proposed PU-evaluation framework was demonstrated through field case studies.