CONSUMER VALUE OF THE PRODUCT
The rapid growth of innovative firms from a small startup is due to the fact that the innovation they have developed and implemented makes it possible to solve old, previously seemingly intractable consumer problems.
It’s all about the “consumer value” of an innovative product.
The consumer value of a product is the maximum price that a customer considers profitable to pay for a given product.
That is, the consumer value of both products is the same in the eyes of the consumer. *(100 $)
but:
- An innovative product is much cheaper…(as we can see, the difference between the consumer value of an innovative product and the price it sells for is enormous compared to a traditional product.)
- The consumer would agree to pay even more money for an innovative product, but on the contrary, he would like to pay less for an old product..
MARGIN OF COMPETITIVENESS
The margin of competitiveness is the difference between the consumer value of a product * ($100) and the price for which it was actually purchased. *($50). For the consumer, it represents an unpaid, gratuitous share of consumer value.
The rapid growth of innovative firms from a small startup is due to the fact that the innovation they have developed and implemented makes it possible to solve old, previously seemingly intractable consumer problems.
It’s all about the “consumer value” of an innovative product.
The consumer value of a product is the maximum price that a customer considers profitable to pay for a given product.
