2SOCIAL AND ENVIRONMENTAL SUSTAINABILITY. RESPONSIBLE CONSUMPTION AND CORPORATE RESPONSIBILITY (CSR) Flashcards
Is value the tangible difference between costs of inputs and products?
No, value includes aspirational and sentimental aspects, not just economic factors.
Is value an objective parameter?
No, value is subjective and varies among different customers.
Can value always be monetized as an economic parameter?
No, value can include sentimental aspects that are not easily monetized.
Do producers receive a price equivalent to the value they create?
No, producers often do not get a price that fully reflects the value created.
Are fashion customers willing to pay a price equivalent to the value they receive?
No, customers often pay less than the perceived value of the product.
What is the difference between value and price?
Value is the perceived benefit to the customer, while price is the monetary amount charged for the product.
What is the value chain?
A tool for disaggregating a company into its strategically relevant activities to focus on competitive advantage sources.
What does each step in the value chain need to do?
Add some increment of value to the finished product or service.
What is the goal of analyzing a value chain?
To identify activities that result in higher prices or lower costs.
What is a value system?
It includes companies upstream (suppliers of raw materials) and downstream (distribution channels to customers).
What is the margin formula in the value chain context?
Margin = Price - Cost
What constitutes value to end customers?
The perceived benefits of a product divided by the perceived sacrifices of buying it.
What factors contribute to the results aspect of value?
Overall quality, ease of use, warranty, purchasing experience, etc.
What factors contribute to process quality?
Convenience, fun experience, short waiting times, ease of finding products, etc.
What are customer access costs?
Costs associated with club membership fees, inconvenient locations, poor store hours, inadequate parking, etc.