In this post we will learn 3 things:
- What is Economic Value?
- How do customers Evaluate Economic Value?
- How do you give Economic Value?
What is Economic Value?
Economic Value is when you get something like for example a mouse, and let’s say it is 1000 Rupees. You value the offer the mouse is giving more than anything else at the moment. With the same mouse example, I’ll tell something else. I get a really good mouse for 3000 Rupees. I value the mouse more than a Keyboard at that price, or you can go out and eat at that time. It can be with anything not a specific brand or anything.
How do customers Evaluate Economic Value?
There are 9 main ways customers can evaluate the product or service you are giving.
1. Efficacy.
How well does it work, this can be mainly applied with products like for example, how well does your keyboard work? That is Efficacy.
2. Speed.
How quickly does it work? This can be applied in quite a few ways. The main thing I would say When I hear this is how long does it take to finish your work or what you want to do with this product. Or if it is something like a RC car it will be counted by either KPH or MPH. And so it goes on.
3. Reliability.
How much can I depend on this product. Now this can be applied with anything. Like if it is a car or like a laptop. You have to depend on it. You depend on it to not crash apps and handle apps, games etc. (The Laptop.) And for the car you depend on it to not break down, and take you to places that you want.
4. Ease of use.
How much effort does it need to do things? Things like driving a car might take average effort if you have driven it before and know how to drive it. But other things can take lots and lots of effort to use. Or it does not even have to be to use, it can be to set something up. Like a table can be easy to use but it can be hard to set up.
5. Flexibility .
How much things can it do? A laptop can be useful for many things, like Gaming, Programming, Writing, Calls, etc. There is always a limit to things, but people would like your product if your product can do many things.
6. Status.
How does this affect the way other people see me? Things like a PC would probably do nothing to change your status. But probably having a mansion or a really expensive or a really expensive car like a Lamborghini can change your status.
7. Aesthetic Appeal.
How attractive is it? Now this is a thing which many people want, looks can be good for some, maybe not for others. But people mainly look at that, a thing like a Lamborghini like I said before can be very attractive. People like it being Attractive, few people don’t.
8. Emotion.
How does it make me feel? Okay it might have all of the things mentioned above, but you should feel good or at least satisfied with the product. If it is cheap, attractive and everything but you do not like it, it is pretty much useless.
9. Cost
How much do you have to give up to get this item? This can be in many ways too, or at least it can be said in many ways. Maybe it is not something you buy with money, maybe it is something you earn with by working. Or if it is money how much money do I have to give up to get this product?
How do you give Economical Value?
If you do most of the things said on the topic right before, you might be able to bring Economical Value. Of course everything cannot be perfect, but if you try to do as much of it as possible, the more customers you can get. But not only does the Value you give matter, but also the Marketing you do, etc. But that topic is for another Substack.
Bye guys thanks for reading! See you next week!