Consider the case of pre-conditioning calves. It is also important to recognize that different customers have different value-added perceptions. These perceptions correspond directly to the differing expectations regarding quality, service, convenience, and selection factors. Review these characteristics. Remember that a product is simply a bundle of benefits and that value is added when this package or bundle of benefits synergistically increases the actual or perceived benefits associated with the physical product or service.
Many factors affect value-added.
Consumer tastes and preferences have changed drastically over the years. Consumers have higher incomes than ever before and are focusing more on convenience, quality, variety, service, health, and social consciousness. To take advantage of value-added opportunities, one must thoroughly attempt to know and understand customers. Identify the segment of the market you are targeting, the benefits desired by these potential customers, and what criteria they are looking for when purchasing. Any business enterprise can be thought of as a value chain.