Economic Values

This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…

What are “Economic Values”?

“A successful business is either loved or needed.” — Ted Leonsis, former executive at AOL and owner of the Washington Wizards and Washington Capitals

Key Points:

• If the benefits of an offering are appealing, there are nine common Economic Values that people consider when evaluating a potential purchase:
  
  
  
  • Efficacy: how well does it work?
  • Speed: how quickly does it work?
  • Reliability: can I depend on it?
  • Ease of use: how much effort does it require?
  • Flexibility: how many things does it do?
  • Status: what does it tell about me to others?
  • Aesthetic appeal: how aesthetically pleasing is it?
  • Emotion: how does it make me feel?
  • Cost: how much do I have to give up to get it?
• Most improvements focus either on convenience (Domino’s delivery) or fidelity (table at Pizza Uno). It’s very difficult to improve both.
• The trade-offs made in the development give the offering its unique identity and overall value.

Questions for Consideration:

• What values could you emphasize for your offering?
• Is your offering optimized for fidelity or convenience, or are you trying to be all things to all people?

Share this concept: http://book.personalmba.com/economic-values/

True leaders aren’t made by business schools – they make themselves, seeking out the knowledge, skills, and experiences they need to succeed. Read this book and you will learn in one week the principles it takes most business professionals a lifetime to master. Buy The Personal MBA by Josh Kaufman now.