Adding Value to Products and Services in Business

The video explores how businesses add value to their products and services, allowing them to charge higher prices than the production costs. It highlights the role of brand influence, using examples like Apple, Nike, and Rolex, and discusses strategies for adding value, such as improving quality and controlling costs. The video also compares the value added in dining experiences versus home cooking and emphasizes the importance of added value for business profitability and growth.

What is the primary reason companies like Apple can charge more for their products?

• The cost of production is very high.

• Their brand image and logo have significant influence.

• They use rare materials.

• They have a monopoly in the market.

Which of the following is NOT a method to add value to a product?

• Improving product quality

• Increasing production costs

• Enhancing brand awareness

• Developing a unique selling point

Why might a restaurant meal cost more than a homemade meal?

• Restaurants use more expensive ingredients.

• Restaurants add value through ambiance and service.

• Homemade meals are less nutritious.

• Restaurants have higher taxes.

What is a key benefit of adding value to a product?

• It reduces the need for marketing.

• It allows businesses to charge above production costs.

• It eliminates competition.

• It decreases the overall production time.

What should businesses consider when deciding where to add value?

• The availability of raw materials

• The number of employees required

• The balance between psychological and practical value

• The potential increase in production time

What is a potential risk of trying to add value to every product?

• It might lead to a decrease in customer loyalty.

• It can cause a reduction in product quality.

• It can lead to decreased brand recognition.

• It may result in higher costs and financial strain.

Which factor is considered a psychological approach to adding value?

• Increasing product size

• Enhancing brand image

• Reducing production costs

• Improving product durability