Added value + methods Flashcards
1
Q
What is added value ?
A
When the business charges the customer more than what it cost to make the product
2
Q
What is the benefits of added value ?
A
Higher price = more profit
Enhance product perception
Offers people a USP
3
Q
What are the benefits of added value for stakeholders ?
A
Stakeholders get a unique product
May see it as value for money
Profits increase with benefits shareholders
Brand name is linked to quality
4
Q
What are the disadvantages of added value ?
A
May not be able to regather the costs from increasing the price
Increased price may reduce sales
Competition may not allow price to be increased
Elasticity of price affects is market position
5
Q
A
