Understanding Value – Beyond Mere Metrics

Abstract

The price of a product or service must reflect and capture the value delivered, but the bulk of attention paid to the area of value determination is to methods of calculating value. This approach ignores the less tangible but equally or more important aspects of value that often drive decision-making, aspects that don’t lend themselves easily to the metrics many believe are essential to solving the pricing puzzle. Pricers, to be effective, must understand how to identify these nonmetric aspects of value and incorporate them into their pricing decisions. This chapter provides a foundation for determining the sources of value of a product or service, tools and models that can be used to determine and understand value, and commentary on ways to capture this value through pricing.

Citation

(Mick) Kolassa, E.M. (2012), "Understanding Value – Beyond Mere Metrics", Smith, G.E. (Ed.) Visionary Pricing: Reflections and Advances in Honor of Dan Nimer (Advances in Business Marketing and Purchasing, Vol. 19), Emerald Group Publishing Limited, Leeds, pp. 195-212. https://doi.org/10.1108/S1069-0964(2012)0000019015