‘Value’ and ‘Price’ may seem all the same but these words have different meanings and uses.

Let us discuss.

Value
In simple words, value means how much something is worth, either in terms of cash or importance.

In business, value is something customers perceive from a product or service in exchange for money.

Examples:

• Value for the age of the earth
• Value of wedding ring
• Value of good health

Price
A price is the quantity of money expected, required, or given by one party to another in exchange for something.

In business, price is the amount a customer is willing to pay for a product or a service.

Examples:

• The price of the iPhone 15Pro Max is Tk. 1,47,000
• The price of the book ‘The God of Small Things’ is Tk. 200

Let us summarize:

Price is the amount of money a buyer has to pay to purchase a product or a service. On the other hand, value is the perceived worth of the product or a service to the buyer. A buyer can determine the perceived value of a product or service considering several factors like quality, brand, utility and customer experience among many others.

*Amreta Biswas: Senior Lecturer, Dept. of Business Administration, Central Women's University.