What is added value?

Concept with different meanings depending on whether an economic, financial-accounting or marketing point of view is adopted. In economic terms, added value is the utility that a good or service acquires as a result of undergoing a transformation process. Thus, we speak of products or goods with low added value if the transformation process does not require technical knowledge or complex procedures. In accounting, it is equivalent to the difference between sales and the productive factors used by a company, which measures the wealth generated by it. In marketing, added value is understood to be that extra or differential characteristic of a product or service that makes the consumer prefer it to that of the competition. The added value usually lies in the service, the customer service or the brand.

Other denominations:
Added value

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