Creating Value in Business

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To create VALUE one must first think of UTILITY (Use-value). UTILITY is the importance a person or group of persons attach to a thing on the account of

the belief that it has the capacity to bring about a desired effect- whatever it maybe. 

UTILITY, categorically speaking, subjective use-value must be sharply distinguished from objective use-value. Use-value in the objective sense is the relation between a thing and the effect it has the capacity to bring about. It is objective use-value, for argument sake, that a particular brand of coffee should be consumed pure black because it has the objective functional capacity to keep people wide-awake. 

It is subjective use-value that I or a group of consumers take that particular brand of coffee (with either milk or sugar or both) simply because of its peculiar aroma or whatever the personal reasons and we are not at a functional loss neither are we interested in whether or not it still has, in this diluted state, the capacity to keep one vigilant. 

There are no arithmetical processes involved, neither adding nor multiplying; there is no such thing as calculation of values, there is a valuation of the utility dependent upon attainment of the desired effect- the end sought. 

This can be said for same people at various times and same time for various people under given conditions. 

In similar light, VALUE and UTILITY may be dependent upon choosing between definite quantities of homogeneous supply. A man owning seven cows and seven horses may value one horse higher than one cow and may, when faced with the alternative, prefer to give up one cow rather than one horse. But at the same time the same man, when faced with the alternative of choosing between his whole supply of horses and his whole supply of cows, may prefer to keep the cows and to give up the horses. 

The notions that values are in things is inaccurate if not applied to a situation, the prevailing conditions, the capacity it has to bring about a desired effect, and in the meaning to the buying individual(s).

Read 753 times Last modified on Friday, 12 June 2015 06:33
Abdulwaheed Bashar

A brand strategist, who's passionately driven by the entrepreneurial spirit of medium and small-scale enterprises, and a keen observer of the Nigerian market economy.

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