Collaborative gear structure representing value creation.

Decoding Value: How to Create What Customers Really Want

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Beau Callahan in Business & Economy August 2025 • 5 min read.

"Uncover the secrets to creating lasting value in a world of changing customer expectations. Learn how businesses can thrive by truly understanding their audience and adapting to their needs."


In the twenty-first century, the concept of "value" has resurfaced as a crucial element for businesses and consumers alike. While it seems like a simple, everyday term, the reality is that value is complex and can be understood in countless different ways. These varying interpretations often lead to confusion but are vital to understand for any modern business looking to thrive.

Value has a long history in academic discourse. In recent times, it has become closely associated with business objectives. Specifically, creating value for the business or providing value to the customer. This is often seen in subject areas like marketing and ideas related to service-dominant logic (SDL). This approach suggests that value can be seen as a simple label for the price of a product or service. However, reducing value to just price can be limiting, potentially equating it with outdated notions of labor cost versus profit.

Alternatively, we can view value as an ongoing process. This perspective aligns with the SDL approach, emphasizing the development of specific mindsets. In this sense, value becomes more than just a noun; it transforms into a verb. It involves adding, evolving, becoming, experiencing, developing, and ultimately creating value. This process is not purely economic; it's also a creative and developmental one. It's shaped by individual subjectivities and perceptions within organizations, impacting everyone from individual teams to the entire entity.

Why Understanding Value Matters: Creating Authentic Connections

Collaborative gear structure representing value creation.

Value exists everywhere within an organization, influencing operations at every level. There's often a divide in how value is perceived by top management versus other members of the organization. The critical factor is how actively individuals or teams participate in the process of creating value. Attempts to capture these varying approaches and perceptions are often evident in institutional initiatives and government policies.

To move forward, we need to strive for a greater understanding and consensus around the definitions of value, both within and outside the business world. This requires ongoing evaluation of whether value is inherent or a result of specific processes. If a universal definition remains elusive, the very least that can be done is exploring the boundaries of what value means.

  • Value as a Multifaceted Concept: Value presents itself in a multitude of forms and dimensions, encompassing not only creation but also the potential for destruction. It is vital to recognize the risks of diminishing value, both consciously and unconsciously.
  • The Plurality of Values: Understanding “values” in the plural introduces a more social, ethical, and qualitative dimension. It shifts the focus from purely economic attributes to belief systems, ideals, and aspirations that influence how value is conceptualized and implemented.
  • Bridging Theory and Practice: Value acts as a crucial link between academic theory and practical application, offering shared meanings that resonate in everyday life. A deeper exploration of value facilitates a dialogue on creating value, which holds substantial importance for enhancing effectiveness and performance in today’s complex and ambiguous organizational settings.
Value serves as a bridge between practitioners and academics. It offers common meanings in everyday life, yet a deeper exploration is crucial. This facilitates a dialogue on creating value, which is significant for enhancing effectiveness and performance in complex organizational environments. Diversity within senior management is one example of how organizations can prepare for and respond to modern challenges.

Embracing the Evolution of Value

As demonstrated, the concepts of value and value creation have shown remarkable prevalence and persistence over time. However, it's crucial to acknowledge that changing contexts inevitably lead to shifts in perspective. The dynamic landscape of the twenty-first century—characterized by geopolitical, market, technological, sociological, ethical, and ecological transformations—will ensure that value remains a key strategic consideration. By deepening and broadening our understanding, we can better address the challenges and opportunities that lie ahead.

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Everything You Need To Know

1

How has the understanding of 'value' changed in the twenty-first century for businesses and consumers?

In the twenty-first century, 'value' has re-emerged as a vital consideration for both businesses and consumers. Although seemingly straightforward, it is understood in many different ways, leading to potential confusion. Initially viewed through the lens of marketing and service-dominant logic (SDL), value was often equated to the price of a product or service. Now, value is seen as an ongoing process, involving adding, evolving, and experiencing, shaped by individual perceptions within organizations. This understanding goes beyond simple economic metrics, encompassing creative and developmental dimensions, though capturing this full scope remains a challenge.

2

Why is understanding the different perceptions of 'value' important within an organization?

Understanding diverse perceptions of 'value' is crucial because value exists at every level of an organization, influencing all operations. There is often a divide between how top management and other members of the organization perceive value. The degree to which individuals or teams actively participate in creating value is the key factor. Recognizing these varying approaches is essential for fostering a shared understanding, improving effectiveness, and enhancing performance across the organization. Addressing these differences can be seen in institutional initiatives and government policies aimed at capturing and aligning diverse perceptions.

3

In what ways can 'value' be more than just an economic attribute for a business?

Beyond its economic dimension, 'value' also encompasses social, ethical, and qualitative aspects. 'Values' in the plural, refer to belief systems, ideals, and aspirations that influence how 'value' is conceptualized and implemented. This includes understanding the potential for value destruction, both consciously and unconsciously, and recognizing the risks of diminishing value. By integrating these broader dimensions, organizations can move beyond purely economic metrics to create more meaningful and sustainable value.

4

How does 'value' serve as a bridge between academic theory and practical business application?

'Value' acts as a crucial link by providing shared meanings that resonate in everyday life. It offers a common ground for academics and practitioners to engage in a dialogue on creating value. This dialogue is significant for enhancing effectiveness and performance in complex organizational environments. For example, promoting diversity within senior management is one practical step organizations can take to prepare for and respond to modern challenges, bridging theoretical concepts with real-world applications.

5

Given the evolving landscape of the twenty-first century, how can businesses ensure that 'value' remains a key strategic consideration?

In the dynamic landscape of the twenty-first century, characterized by geopolitical, market, technological, sociological, ethical, and ecological transformations, 'value' remains a key strategic consideration. Businesses must deepen and broaden their understanding of 'value' to better address future challenges and opportunities. This involves acknowledging that changing contexts inevitably lead to shifts in perspective. Embracing the evolution of 'value' and continuously adapting to new realities will be crucial for long-term success.

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