Measuring Value in Business
From a business perspective, value refers to a consumer’s benefits from using a product and its features. The value may be measured from the input side and utility side. Inputs, in this case, refer to labor and production costs. To that end, a product that requires extensive and high-priced labor input is seen to be of high value. On the other hand, the utility of a product may also be used to determine value. For instance, an Android Television is deemed to be more valuable than a digital television since the former offers a user the opportunity to access more than satellite services. Need help with your assignment ? Reach out to us. We offer excellent services.
In my opinion, business is not a good indicator of value. Some businesses may sell more, not because they have better products, but due to aggressive marketing. Besides, good business strategies like quick responses to customer inquiries may also enhance the business aspect of a company. However, such companies may be offering inferior quality products, hence not producing value.
It is essential to continually improve value, especially if a business operates in a free market. The failure to assess value will ultimately lead to business failure (Leroi-Werelds & Streukens, 2011). With time, consumers will interact and share information. Rivals offering higher value will receive more customers from businesses that do not continually assess their value.
New Coke’s failure is an excellent example of what happens when businesses fail to offer value. Coca-Cola sought to sweeten the new drink to counter previous concerns about taste. However, the reformulated Coke received a backlash from consumers since it had taken away the ‘classic’ taste that consumers were accustomed to (The Coca-Cola Company, 2022). Coca-Cola had to ultimately return to the ‘classic’ Coke to redeem its plummeting fortunes.
References
Leroi-Werelds, S., & Streukens, S. (2011). Marketing Science Institute Working Paper Series 2011 Customer Value Measurement. http://thearf-org-unified-admin.s3.amazonaws.com/MSI/2020/06/MSI_Report_11-102.pdf
The Coca-Cola Company. (2022). The Story of One of the Most Memorable Marketing Blunders Ever – News & Articles. Www.coca-Colacompany.com. https://www.coca-colacompany.com/company/history/the-story-of-one-of-the-most-memorable-marketing-blunders-ever
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Question 
Measuring Value in Business
What is value, and how is it determined and measured? In your opinion, does business generally determine and measure value appropriately? In a free market, what happens when a business and its leaders do not properly assess value? Give a historical example and your thoughts about how and why a disconnect occurred. Cite any sources used to support your answer.