ADDED VALUE Meaning and
Definition
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Added value is a concept that refers to the enhancement, improvement, or increase in worth or utility of a product or service as a result of performing particular actions or incorporating additional features. It can also describe the incremental benefit or advantage gained from these actions or features. The term is commonly used in the fields of business, marketing, and economics.
In business, added value refers to any improvement, alteration, or modification made to a product or service that enhances its appeal to consumers, differentiates it from competing offerings, or increases its market value. It can manifest in various forms, such as improvements in quality, functionality, aesthetics, convenience, or customer service. These enhancements often result in greater customer satisfaction, improved brand image, increased customer loyalty, and, consequently, higher profitability.
Added value can also be seen as the process by which raw materials, components, or inputs are transformed into a finished product that is more valuable than the sum of its parts. This can involve activities such as design, manufacturing, packaging, marketing, distribution, or after-sales support.
From an economic perspective, added value can be calculated as the difference between the total value of a product or service and the costs of its production. It is a key measure of economic productivity and competitiveness, as it reflects the ability to create value and generate profits above and beyond the costs incurred.
Common Misspellings for ADDED VALUE
- zdded value
- sdded value
- wdded value
- qdded value
- asded value
- axded value
- acded value
- afded value
- arded value
- aeded value
- adsed value
- adxed value
- adced value
- adfed value
- adred value
- adeed value
- addwd value
- addsd value
- adddd value
- addrd value
Etymology of ADDED VALUE
The term "added value" originated from the field of economics and business. The word "value" refers to the worth or usefulness of a product or service, while "added" suggests something that has been increased or enhanced.
The concept of added value emerged in the early 20th century as a way to describe the increase in value that occurs when raw materials or components are transformed into a finished product. It represents the additional worth that is created through the process of production.
The phrase "added value" itself became more widely used in the 1970s and 1980s with the rise of the service sector, where the focus shifted from physical goods to intangible services. It is often used to describe the extra benefits or features that are provided to customers, distinguishing a product or service from its competitors.
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