Added Value

It is the concept for encouraging consumers to pay extra for an elevated element of service and which may include perceived, tangible, and intangible goods or services. Added value can also be defined as the difference between a particular product’s final selling price and the direct and indirect input used in making that particular product or offering an extended service.

One example of this is when a retailer, such as a jeweller presents items in an attractive display, creates a luxury feel to the shop and also offers free gift wrapping for their customers. This could make the customers more willing to pay higher prices because there is this perception of higher quality.