It is also important to recognize that different customers have different perceptions of added value. These perceptions correspond to their expectations of quality, service, convenience and selection. A product must have one or more of these qualities to generate additional value. Remember that a product is simply a bundle of benefits, and that the more benefits there are the more customers will perceive the product as having value. Agribusiness, particularly the food sector, is rapidly consolidating and increasingly responding to the changing tastes and preferences of consumers.
Consumers have higher incomes than ever before.
They are focusing more on convenience, quality, variety, service, health, and social consciousness. In a nutshell, consumers are more value conscious than ever. The factors of rising disposable incomes and market fragmentation caused by retail consolidation exacerbate competition, but at the same time leave many niche markets to be exploited and create opportunities for producers to add value to their products. Writing these down as part of a business plan is an important first step in beginning a value-added business. Any business enterprise can be thought of as a value chain.