How is value calculated in marketing?

In marketing, value is generally calculated as the difference between the perceived benefits of a product or service and its costs. This means that value involves assessing what the consumer gains from the product—such as utility, satisfaction, or features—and weighing that against what they have to give up, which is typically the financial cost of the product, but could also include time, effort, and other sacrifices involved in the purchasing process.

When consumers evaluate a product, they consider how much they believe they will benefit from it compared to how much it will cost them. If the perceived benefits exceed the costs, consumers are likely to perceive the item as valuable. This calculation is crucial for marketers, as understanding how consumers perceive value can inform product design, pricing strategies, and promotional activities.

The other options do not accurately reflect the standard way value is assessed. For instance, adding benefits to costs (the first option) does not provide a meaningful measure of value and would provide an inflated view. The third and fourth options employ divisions and additive relationships that do not align with the typical framework of assessing perceived value in marketing.