Value Added by Marketing – The increase in value due to performance of marketing activities by a firm. Value added by marketing is computed by subtracting the market value of purchased goods from the market value of goods sold.
Value Adding Reseller )VARs) – Retail intermediaries who modify equipment, integrate several components into a system solution, or provide additional services to offer customized solutions to the customer. VARs are found especially in markets for computer equipment and other forms of information technology.
Value Analysis – 1. (industrial definition) An analytical procedure to study the costs versus the benefits of a currently purchased material, component, or design in order to reduce the cost/benefit ratio as much as possible. It is also called value engineering. When performed by a seller, it is often referred to as value-in use analysis. 2. (product development definition) A systematic study of the product wherein the analyst keeps asking, “Can the cost of this part, this subassembly, or this step be reduced in any way, or even eliminated?” Value analysis is usually performed by engineers who are seeking new, less expensive way to design or create the product being studied. It may be performed on the products the firm produces, or on products that it purchases from its supplier.
Value Based Pricing – A price setting process based on the value the product provides to the customer.
Value Chain Analysis – An approach to assessing the positions of competitive advantage. A value chain firs classifies the activities of a business into the discrete steps performed to design, produce, market, deliver, and service a product. Supporting these specific value-creation activities are firm-wide activities such as procurement, human resources management, technology, and the infrastructure of system and management that ties the value chain together. To gain advantage a business must either perform enough of these activities at a lower cost to gain an overall cost edge while offering a parity product, or perform them in a way that leads to differentiation and a premium price.
Value Pricing – A method of setting prices based upon the perceived value the product gives a specific consumer or group of consumers.
Value-Expressive Function of Attitudes – A function of attitudes that allows the individual to express his or her self concept. The value-expressive function is served by attitudes that demonstrate one’s self image to others. it is one of the functions of attitudes proposed by the functional theory of attitudes.
Value-In-Exchange – The amount of money or goods actually paid for a product or service.
Value-in-Use – The amount of money or goods that buyers would be willing to pay for a product or service. Value-in-use is always greater than value-in-exchange.
Value-in-Use Pricing – A method of setting prices in which an attempt is made to capture a portion of what a customer would save by buying a firm’s product.
Variable Cost, Average – The sum of all variable costs, i.e, those costs that vary directly with the number of units produced and marketed, divided by the number of units currently produced.
Variable Cost, Total – The sum of all costs directly incurred by production and marketing of a given number of units.
Variable Import Levies – The import charges levied when the prices of imported products would undercut those of domestic products. The effect of these levies would be to raise the price of imported products to the domestic level.
Variable Price Policy – a policy of adjusting prices to different customers, depending on their relative purchasing power or bargaining ability.
Variety – The number of different classifications of goods carried in a particular merchandising unit. It implies generically different kinds of goods.
Variety Seeking – the choice of an alternative in order to experience diversity or variety in consumption over time. For example, someone may eat a Butterfinger candy bar for a snack one day, but choose a Baby Ruth candy bar the next day specifically to get something different.
Variety Store – An establishment primarily selling a wide variety of merchandise in the low and popular price range usually in limited assortments, such as stationer, gift items, women’s accessories, toilet articles, light hardware, toys, housewares, and confectionery. Variety stores were formerly known as limited price variety stores because merchandise was usually not sold outside some specified price ranges.
Vending Machine – The retail sale of goods or services through coin-or currency-operated machines activated by the ultimate consumer-buyer.
Vendor Analysis – 1. (industrial definition) An organized effort to assess strengths and weaknesses of current or new suppliers to assure supplier quality. It is usually undertaken by the purchasing department. 2. (retailing definition) An analysis of sales, stocks, markups, markdowns, and gross margin by vendors.
Venture – A risky new product project or business start-up. Ventures are often staffed by managers who are pulled out of their regular functional jobs and assigned to the projects. The venture may be totally in-house (located on the customary premises, close to the regular operation) or it may be spun out (relocated at some point well apart from the ongoing operation). If carried out in cooperation with another firm, it is a joint venture.
Venture Team, in New Product Development – This is similar to a new product task force, but with an important difference: The team is independent of any functional department. members stay with the project until it is abandoned or commercialized. In the latter case they may become the management team responsible for running the new product as a separate business. The venture team is authorized to obtain assistance as needed from functional departments or to purchase external assistance. A venture team usually reports to a top corporate officer. Comment: A venture team is also appropriate for totally new products that usually require more time, expense, and risk than managers of currently operating businesses are willing to support. A venture team requires long-term commitment and support from corporate management.