10 EXAMPLES OF ECONOMIC VALUES - LITERATURE - 2024

The economic value is the maximum amount of money that a consumer is willing to pay for purchasing a product or enjoy a service economy with free competition. It must be differentiated from the market value that represents the average amount that a consumer will pay for goods or services with similar characteristics.

For example, the market value of a coffee could be $ 0.20, if it is bought at a supermarket and made at home. However, the economic value of a starbucks coffee is about 4 dollars, since it is branded and can be taken in a cafeteria with a good atmosphere. Therefore, it is a subjective value, since the real cost of starbucks coffee could be $ 0.20, although being from that brand you get to pay much more.

In the economic sense, the word value is related to the wishes of the consumer to obtain a good or to experience a service. Valuation is subjective, however, the subjective fact that many people want a particular item or service is an objective economic reality.

Economic value is a concept that is derived from the analysis of how the consumer selects within multiple items, those in which they will invest their limited resources, managing to satisfy only some of their multiple needs and trying to maximize their well-being.

There is no precise mathematical formula to determine the economic value of a good or service since it encompasses both tangible and intangible characteristics of a product.

The tangible character is based on the functionality of the product, while the intangible character focuses on the consumer's emotional affinity for the good.

The economic value is not a static figure, it can be affected by the change in the quality standards of products and services, the decrease in purchasing power by the consumer, the variation in macroeconomic indicators such as inflation and scarcity indices or simply the change in tastes and preferences on the part of the consumer.

Some examples of economic values

Emerson (2000) maintains that economic values ​​are created by taking an input or set of inputs, to transform them into products and services that report greater benefits for the consumer.

Kevin Maney (2010) explains that the consumer evaluates the benefits in terms of two main characteristics: convenience and fidelity.

Products and services that are quick to source, easy to use, flexible, and reliable are convenient, on the other hand, those that offer quality, status, aesthetic appeal, and emotional impact are high fidelity.

Examples of economic values ​​can be seen in most successful for-profit corporations.

Here are 10 examples from everyday life where the impact that economic values ​​have on society is evident.

1- University degrees

According to a study carried out by Georgetown University in 2015, professionals specialized in the fields of science, technology and engineering enjoy a considerably higher economic value than professionals who work in the areas of art, education and engineering. administration.

The labor field grants higher remuneration to professionals who manage to develop certain competencies and skills.

2- Organic food

During the last decades there has been an exponential growth in the demand for organic products, mainly motivated by the adoption of healthier lifestyles by society and also by its growing interest in preserving the environment for future generations.

The consumption of organic food promises a longer and healthier life, but it also implies for the consumer to invest 10% to 30% more than the usual budget in the purchase of food (Lohr 2.001), which clearly shows that the economic value given to organic food is greater than that given to conventional food.

3- Starbucks

Dr. William S. Silver in his speech at TED in 2013, reports that enjoying a cup of coffee prepared at home costs only a few cents.

Buying it at an independent coffee shop, a couple of dollars, but buying it at Starbucks will always be the highest cost option.

What does Starbucks do for the consumer to assign a greater economic value to the cup of coffee that the company sells? Many authors claim that the difference is not only in offering superior products and services.

What Starbucks does is create an emotional bond with the consumer, allows them to enjoy the shopping experience and makes them feel part of a special group.

4- Evian

Currently, you can find a large number of spring water brands with relatively similar characteristics, however, of all of them Evian stands out for being the most attractive and of the highest economic value.

Since its appearance on the market, this spring water has been used not only to quench thirst, but also for medicinal purposes, and it is even linked to human leisure and entertainment activities.

This brand of spring water is the favorite of important figures from the political, sports and entertainment world, which provides greater status to those who consume it and therefore increases its economic value.

5- Garments

The brands: Old Navy, Banana Republic and Gap, are owned by the same company, Gap Inc. These three brands manufacture similar types of clothing, but each one of them offers compensations that are decisive for the purchase choice of different profiles of consumers.

Gap Inc segment each brand, so that: Old Navy will be selected by the consumer looking for functionality, efficiency and low cost. Gap will be chosen by the client looking for style and fashion at a moderate cost.

Banana Republic represents the ideal choice for those who pursue aesthetics and good taste at a premium cost. Each of the brands has its own personality and an economic value associated with it.

6- Eco-friendly brands

Consumers not only select those products and services that represent the best alternative in terms of quality and price, it is more and more frequent that their choice patterns favor those brands that are respectful with the environment.

The change in the business strategy to capture the attention of the customers can sometimes be simple, it is enough to increase the content of recycled material within its production processes and show this fact on the label of the good, in order to achieve increase its economic value.

7- Haute couture

Haute couture garments are exclusive pieces that take months to make. A dress can cost anywhere from $ 50,000 to more than $ 300,000, making it a statement of style and a symbol of status for the buyer who purchases it.

The economic value of haute couture dresses is found in their aesthetic appeal and in the creativity that the designer reveals when creating a unique piece made to measure for the client.

8- Distance education

Learning through the use of technological tools is becoming more and more reliable, specialized and friendly for professionals who face a highly dynamic life, and who want to expand their knowledge on certain topics of interest.

This type of tool has a high economic value because it optimizes and makes more flexible the use of time so that the consumer eager for information increases their knowledge.

9- Amazon

Today, Amazon.com is the world's most successful online store, where everything from hand soap to auto parts is available at the click of a button. Amazon also has a precise home delivery system.

The high economic value of this company is sustained in terms of efficiency, speed, reliability and good service.

10- Education

The economic value in university education is seen not only from the perspective of the knowledge that will be acquired, but also includes other factors such as the level of influence and relationships that the student can acquire during their formative years. All these parameters will guarantee future professional success.

References

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