What might be included as "something of value" in the price equation offered to consumers?

The concept of "something of value" in the price equation refers to elements that enhance the perceived value of the purchase for consumers beyond the actual product itself. A warranty is a strong example of this because it provides buyers with a sense of security and assurance regarding their investment. By including a warranty, the company communicates confidence in the quality and durability of its product, making it more attractive to consumers. This added protection can alleviate concerns about potential defects or failures, thereby enhancing the overall value proposition.

While discount cards, free samples, and loyalty points can also provide value, a warranty specifically addresses the future usability and longevity of the product, which many consumers consider crucial when making purchasing decisions. It can effectively justify a higher price point and is often seen as a demonstration of the seller's commitment to customer satisfaction.