How Do You Determine Value?

 

What is the value of this car?

I came across this interesting topic while shuffling through some notes from my Business 501 class. In theory, everyone has his or her own definition of value. In mathematics, there is an absolute value. However, in life, is there a real definition for value?

When you shop for a product at Radio Shack, Target, or Wal-Mart, what do you consider a great value? Is it price, brand name, and/or accessibility? People’s values tend to alternate over time. I remembered in 2001 when the World Trade Center was hit, and the economy was sliding down the tubes. Gas prices were at its all time high and people traded their SUV's for four cylinder cars. It was a crisis! People’s values tend to change as their spending habit decreased. The products that customers normally considered cost effective and high quality were substituted. In today’s society, consumers are utilizing the tools they need in order to be more price conscious­, for instance, comparing prices on the Internet. Even when consumers purchase products over the Internet, it takes time to receive the merchandise. Consequently, what is more important to consumers — value or convenience.

However, value is not always getting good prices and saving money. For example, have you ever seen something on eBay that you would never find in stores? Alternatively, went to a store solely because you knew that a certain product was sold their exclusively; these are examples on how value is created.  

People every day subconsciously think about the value factor whether they know it or not. The next time you go to lunch and purchase a Big Mac meal or Subway sandwich, ask yourself if that product is worth the six dollars. If yes, that product has a value. If no, you will substitute, or go home hungry. Value to me is more willingness versus needs.  How much you are willing to pay or sacrifice in order to receive what you desire. What does value mean to you?