Value Equation
William Neal and Stefan Bathe developed the Value Equation to measure
value perception. This states that total brand value (or utility) is a function
of a product’s tangible, deliverable features, its brand equity, and its price.
Within the price Value Equation, any of these three factors may be the most
important value differentiator under market conditions; where prices are
similar, brand equity may govern purchasing behaviour.Designers add value through creating significance, prestige or other qualities
sought by the target audience. The building of prestige through a sense of
exclusivity for a premium brand adds value, while emphasising economy adds
value to a budget brand. Clothing, perfume and all consumer goods and
services are subject to these factors and possibilities. Designers create value
by focusing on characteristics of significance: those relevant and meaningful
to the target audience; and prestige: high standards and honour achieved
through success, influence or wealth.Prestige
Esteem, high-standing or level of respect with which one is regarded by others. Prestige is the value contained
in a brand. A car company, such as Bugatti, has a heritage that means its new models are regarded as having
a certain prestige.
Significance
The state or quality of being significant. Significance is subjective and refers to how important something is to
the individual. For someone who likes luxury cars the prestige of a Bugatti is significant; for someone who does
not, it isn't.
Design ThinkingValue7273
Queen Anne Press (facing page)
Pictured are jackets for a special edition series of the works of writer Ian Fleming
created by Webb & Webb for Queen Anne Press. The jackets are leather and
feature hand-cut illustrations. The series is a collector’s item with a value over
£14,000 (approximately US$23,000). The quality of the jackets, and the design
details they contain, add to their value and collectability.
1 2 3 4 5 6 7 8 9 10 OK
U258174 DLMAC7osx 18.08.2009 175#NTitle: Basic Design-Thinking
Client: QPL Size: 160mmx230mmblack text U
MY
CKWhile every effort has been taken to carry out instruction to customers satisfactionNO RESPONSIBILITY liability will be accepted for errors
DALIMU 068 CUSTOMERS ARE THEREFORE URGED TO CHECK THOROUGHLY BEFOREAUTHORISING PRINT RUNS
HE-DTP1