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What is value and how is it managed?

Hallberg, Niklas Lars LU (2017) In Journal of Creating Value 3(2). p.173-183
Abstract
The meaning of the notion of value, as well as associated concepts such as value creation and value appropriation, has been subject to much confusion in marketing and management.This article builds on a rich tradition in economics to untangle some of the ambiguities surrounding these concepts. First, it is argued that a rigorous approach to analyzing value must be based on a subjectivist notion of value related to the perceived needs and preferences of consumers. Second, it is suggested that the value-price-cost (VPC) framework in economics may constitute an effective, yet simple, model for understanding how value is created and appropriated by different actors.Third, it is argued that multilevel issues related to buyer-supplier... (More)
The meaning of the notion of value, as well as associated concepts such as value creation and value appropriation, has been subject to much confusion in marketing and management.This article builds on a rich tradition in economics to untangle some of the ambiguities surrounding these concepts. First, it is argued that a rigorous approach to analyzing value must be based on a subjectivist notion of value related to the perceived needs and preferences of consumers. Second, it is suggested that the value-price-cost (VPC) framework in economics may constitute an effective, yet simple, model for understanding how value is created and appropriated by different actors.Third, it is argued that multilevel issues related to buyer-supplier relationships, stakeholder management and the formation of firms should be addressed using a symmetrical model that allows for freeform bargaining between the involved actors.The article closes with implications for specific debates in management. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
pricing, subjective value, value appropriation, value creation
in
Journal of Creating Value
volume
3
issue
2
pages
11 pages
publisher
SAGE Publications Inc.
DOI
10.1177/2394964317728610
language
English
LU publication?
yes
id
993a4ea0-8e41-49aa-823c-65fa94eb38c4
date added to LUP
2017-08-06 00:06:20
date last changed
2017-11-24 10:39:56
@article{993a4ea0-8e41-49aa-823c-65fa94eb38c4,
  abstract     = {The meaning of the notion of value, as well as associated concepts such as value creation and value appropriation, has been subject to much confusion in marketing and management.This article builds on a rich tradition in economics to untangle some of the ambiguities surrounding these concepts. First, it is argued that a rigorous approach to analyzing value must be based on a subjectivist notion of value related to the perceived needs and preferences of consumers. Second, it is suggested that the value-price-cost (VPC) framework in economics may constitute an effective, yet simple, model for understanding how value is created and appropriated by different actors.Third, it is argued that multilevel issues related to buyer-supplier relationships, stakeholder management and the formation of firms should be addressed using a symmetrical model that allows for freeform bargaining between the involved actors.The article closes with implications for specific debates in management.},
  author       = {Hallberg, Niklas Lars},
  keyword      = {pricing,subjective value,value appropriation,value creation},
  language     = {eng},
  number       = {2},
  pages        = {173--183},
  publisher    = {SAGE Publications Inc.},
  series       = {Journal of Creating Value},
  title        = {What is value and how is it managed?},
  url          = {http://dx.doi.org/10.1177/2394964317728610},
  volume       = {3},
  year         = {2017},
}