Surplus value

Examples of Surplus value in the following topics:

• Value and Relative Value

  • Value is the worth of goods, and relative value is attractiveness measured in terms of utility of one good relative to another.
  • Value is the worth of goods and services as determined by markets.
  • One of the big problems is the large number of different types of values that seem to exist, such as exchange value, surplus value, and use value.
  • But how does the seller value things?
  • Not only do the two different buyers have a different value on an object, the salesman puts his value on it, and the original manufacturer may have put yet another value on it.

• Price Discrimination

  • Although there are legal concerns around monopolistic practices, price discrimination is a popular tactic for capturing consumer surplus.
  • Output can be expanded when price discrimination is very efficient, but output can decline when discrimination is more effective at extracting surplus from high-valued users than expanding sales to low valued users.
  • Here, the monopoly seller knows the maximum price each individual buyer is willing to pay, allowing them to absorb the entire consumer surplus.

• Demand-Based Pricing

  • Demand-based pricing is any pricing method that uses consumer demand - based on perceived value - as the central element.
  • These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
  • The objective of a price skimming strategy is to capture the consumer surplus.
  • In practice, it is almost impossible for a firm to capture all of this surplus .
  • Value-based pricing sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices.

• Settling the List Price

  • 'certified organic' and 'product of Australia') may add value for consumers[1] and attract premium pricing.
  • Value to the customer should be taken into consideration in addition to pricing objectives, profit maximization, geographic and buying habit considerations, discounting, rate of return, competitive indexing, the image conveyed by the price, customer price sensitivity, any legal restrictions, the category price points, price ceilings and floors and how payment is to be made.
  • In economic terms, it is a price that shifts most of the consumer surplus to the producer.

• Product, Placement, Promotion, and Price

  • The concept of price is in contrast to the concept of value, which is the perceived utility a customer will receive from a product.
  • In economic terms, it is a price that shifts most of the consumer surplus to the producer.
  • A good pricing strategy would be the one which could balance between the price floor and the price ceiling and take into account the customer's perceived value.
  • Common pricing strategies include cost-plus pricing, skimming, penetration pricing, value-based pricing, and many more.

• Unique Issues in Nonprofit Marketing Strategies

  • NPO's use surplus revenues to achieve their aims rather than distributing the revenue as profit or dividends.
  • While NPOs are permitted to generate surplus revenues, they must be retained by the organization for its self-preservation, expansion, or plans.
  • The extent to which an NPO can generate surplus revenues may be constrained, or the use of surplus revenues may be restricted.

• Adding Value

  • Louis Vuitton is a prime example of how marketing adds value.
  • A main goal of marketing is to add value to an organization.
  • Conducting an effective customer value analysis can lead a company to creating an accurate value proposition.
  • A value proposition is a promise of value to be delivered and a belief from the customer that value will be experienced.
  • Organizations can use value propositions to position value to a range of constituents such as:

• Competition Based on Value

  • Value-based marketing allows organizations to create and sustain differentiating values that enable them to compete within their markets.
  • Value is thus subjective (i.e., a function of consumers' estimation) and relational (i.e., both benefits and cost must be positive values).
  • Value can thus be defined as the relationship of a firm's market offerings to those of its competitors.
  • This image shows how value creation is tied to cost and revenue.
  • State what is important when shifting to a competition based on value marketing perspective

• The Development of Value-Driven Firms

  • The values of an organization are just as important as the products they sell; having a strong value driven culture is important.
  • Having a strong value driven culture will ensure continuous high performance within an organization.
  • The values of an organization are just as important as the products the organization sells.
  • Some people focus on customer service, others on customer experience, others on lifetime value for a customer; many companies believe that having a customer service department is all it takes to create customer value.
  • Voice of Employee will be captured through the Customer Circles and Employee Value Add, and the Voice of Customer and Voice of Competitor will be captured by Customer Value Added (CVA).

• The Common Market of the Southern Cone (MERCOSUR)

  • Merchandise trade with the rest of the world in 2010 resulted in a surplus for Mercosur of nearly $7 billion; trade in services, however, was in deficit by over $28 billion.