3.12.11

Value?

I wanted to get a better understanding of these different concepts of value I've more recently found myself immersed in...


Intangible - 
1. Incapable of being perceived by the senses.
2. Incapable of being realized or defined.
3. Incorporeal.
- Something intangible, especially an asset that cannot be perceived by the senses.
  
Intrinsic Value ?
1. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value.
  
Perceived Value?
The worth that a product or service has in the mind of the consumer. The consumer’s perceived value of a good or service affects the price that he or she is willing to pay for it. For the most part, consumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. Thus, in order to obtain a higher price for their products, producers may pursue marketing strategies to create a higher perceived value for their products.

Perceived value is often used with perfumes, for example. Perfumes tend to be associated with a glamorous celebrity in order to create a mystique and perception of luxury. Alternatively, they may be the subject of elaborate and expensive advertising campaigns to create a strong image for the perfume. Consumers commonly do not realize that the costs of production for perfumes are relatively low. Thus, while the cost of production for perfume may be only a few dollars, the perceived value of a perfume can be far greater. 

Subjective Theory of Value?

The subjective theory of value (or theory of subjective value) is an economic theory of value that identifies worth as being based on the wants and needs of the members of a society, as opposed to value being inherent to an object.
It holds that to possess value an object must be useful, with the extent of that value dependent upon the ability of an object to satisfy the wants of any given individual.




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