It is always important to establish a meaning to a concept before researching or studying such concepts. Often this is not followed as most writers work on a topic and later fall folly of a weak comprehension of the concept they are writing about. Leslie et al (2000) evaluated the concept of value addition and attributed varying definitions and means to the concept widely used in literature. Added value is a concept with varying angles of analyses, as well as, multifaceted meanings and connotation, and Barnes & Blake (2009), as being practical to consumers while other writers think that it is closer to the business, while the third group places it in the middle between business and consumers. Added value is very interactive, and it entails a relationship that exists between a consumer and a product (Barnes & Blake, 2009). Consumers have been observed to employ value addition both before and after consumption (Velamuri, 2012). A number of factors seemly play important roles during the different stages in the consumption process of a product, and in recent years brands, consumer values, customer satisfaction and service quality have incorporated into the package of value addition (Velamuri, 2012). Value addition involves the use of innovation to enhance customer experience, and the move by the customer to exchange their money for the price of the product could be simply understood as acknowledging the value of the product.Product differentiation offers consumers a variety of products within a specific industry instead of a monotonous product that describes purely competitive markets. Firms practice differentiation to make their products better so that customers would rather buy their products than their rivals’. When differentiation is perceived as a method to enhance products rather than just making them look different, it emerges as the driver of economic development (Cohen, 2013:54). In contrast to the traditional applications and perceptions where differentiation creates an expense on the economy in return for more product variety, differentiation reduces costs, inspires economic development, and creates better products in reality.
Collins, J.C. & Porras, J.I. 1996. Built to Last, Century, London.
This book explores the value of value addition in brands that last long at the top of the food chain.
Greenaway, D., Hine, R., & Milner, C. 1995. Vertical and Horizontal Intra-industry Trade: A Cross Industry Analysis for the United Kingdom. The Economic Journal : the Quarterly Journal of the Royal Economic Society. 105, 1505.
This journal explored both horizontal and vertical differentiation of products across industries in the united kingdom.
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