Recall the steps required in calculating the total economic

Recall the steps required in calculating the total economic value of a product. Choose a product and brand that you typically purchase. Provide a list of drivers for that product that matter for you. Include both monetary and psychological drivers in that list. Next, identify a reference brand and describe your perceived points of differentiation for your chosen brand for each of the drivers you have mentioned before. Describe any advice you would provide the marketer of your chosen brand for its marketing strategy to influence your perceived benefits and perceived value of the brand.

Solution

Answer)

Economic Value calculation of a product has very practical steps. It mainly involves the concept of opportunity cost which is price of the next best alternative product or brand. These are the different steps associated with the calculation of Economic value as under

Let us take a brand Sunsilk and now we look into its advantages as:

When the market information flows freely then competition ensures the balance between supply and demand in the market. No doubt there is high switiching from one brand to another in hair care segment of the market.

The reference brand which I take is Head & Shoulders ( H & S )

The main differentiating features of H& S are as follows