Question

clayton christensen was the pioneer of discruptive innovation and the prominent management thinker whose ideas on technology had a big influence on some of today's company largest companies. what are the market value abd user value ? explain both of it with examples in 4 paragraphs

Answer 1

Market Value-

Market value is the price at which a particular goods or serivece is traded between buyer and seller. Market value is also known as Open Market Value (OMV). Market value is the maximum price that a willing buyer is ready to pay for a good,service and the minimum price that a willing seller is ready to receive for the same product, the point at which these two prices match is known as Market value.

Market value of an asset is determined by fluctuations in supply and demand of the product. It represents what someone is willing to pay for an product and not the value it is offered for or its intrinsic worth.

For example, Let us assume, a Laptop is offered for sale for $100,000 but noone is willing to buy it for $100,000. A buyer is willing to pay $85,000 for it.

In this case, even though the laptop is offered for sale at $100,000 , its Market value will be $85,000

User Value-

User value refers to the benefit/value which a customer derives from a product/ service. Different customers may have different user value for the same product. These benefits could be functional (like improving efficiency by saving time), emotional or social (recognition in society). Every user has certain expectations from the company and its products, this level of expectation is termed as user value.

Loyality, committment, open-mindedness, honesty and efficiency are some of the examples of user value.

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