As consumers, we buy things based on the perception of value, and not necessarily just based on the ‘matter’-ial – or the physical composition of the product. We see beyond what meets our senses.
“Matter is anything that has mass and occupies space” (noun)
“To matter is to be of importance or significance” (verb)
When was the last time you bought something?
In this consumption-centric world, we buy products regularly, from the usual everyday things such as a pen, noodles, coffee to the occasional special items such as phone, shoes, bag.
But with all the things that we own, when was the last time we reflected on the value of the products we buy?
Does ‘matter’ matter?
Take a look at your casual sneakers. It probably cost you between P2,000 to P15,000 for a new pair. It might be something you pined over for months (such as a limited-edition pair) or randomly bought because you found it cute. But what is its product value? Its primary function is to give us comfort, punctuated by style. But doesn’t it also represent confidence, mobility, or independence? It enhances our individuality and boosts our self-esteem. It takes us to places and helps us see the world.
We see value in the products we use, but do not always dwell on it. Value is a multitude of benefits that we assign to the products we buy. While price often reflects value, it is not the end-all and be-all reason for consumer choice. Product value is subjective, and often revolves around the functional value or how well a product performs based on what it promised to deliver; social value or how a product enhances our social image; emotional value or how a product arouses feelings or emotional responses, such as boosting one’s self-esteem; epistemic value or how a product provides novelty or new knowledge, such as trying a different color; and conditional value or how a choice was made based on a specific situation – for example, choosing shoes based on the occasion we will wear it for.
As consumers, we buy things based on the perception of value, and not necessarily just based on the ‘matter’-ial – or the physical composition of the product. We see beyond what meets our senses.
Rethinking values that matter
If customers look at the value of a product, what do businesses really sell? Is it the tangible matter or is it the intangible value?
Often, our perception is entrenched on the tangibility of a product. For instance, we emphasize a product’s quality of material. Albeit the quality of material is important, an overdesigned product (with unnecessary features) is ill-compared to a product that ‘feels right’. A popular Japanese retail brand, MUJI, revolutionizes product development by focusing on the core value of a product, without frills. It focused on consumers’ ‘rational satisfaction’, veering away from the egotistic expression of wanting a product, to ‘this will do’ – highlighting the back-to-basics approach of valuing products.
What if we focus on the intangible value (rather than the tangible aspects) of a product? What if we rethink that the physical matter is the ‘medium’ that manifests the ‘essence’ of the product? In this way, businesses can focus on delivering the ‘essence’ of a product rather than focusing on its ‘medium’. Product-as-a-service (Paas) approach is a business model that provides access to, rather than ownership of, products. Instead of buying the product, customers pay for its usage instead. For example, printers can be leased rather than purchased. Customers can pay a subscription fee to use a washing machine, instead of owning one.
Because companies retain ownership of the physical product, they will now see product sales as beyond a one-time transactional event. It becomes a transactional relationship that occurs in every instance the customer uses the product.
Maintaining values that matter
With a product-as-a-service model, businesses can detach the intangible from the tangible. Businesses can instead focus on maintaining the tangible matter (or the ‘medium’) at the least cost through circular economy’s R-strategies (specifically, recycling, repair, refurbish).
While the R-strategies are intended as a solution for environmental sustainability, they can resolve issues beyond this. Businesses can use the R-strategies in maintaining product value without using additional tangible materials. Known as decoupling, businesses can minimize the need for a fresh supply of raw materials, resulting in economic and operational benefits, such as reduced production costs due to less reliance on imported inputs as well as steady and resilient supply chains.
Now, does ‘matter’ really matter?”
Dr. Ivan Gue is the Chairperson of the Department of Mechanical Engineering, Gokongwei College of Engineering, De La Salle University. Dr. Jonna C. Baquillas is an Associate Professor at the Department of Marketing and Advertising, Ramon V. del Rosario College of Business in the same university. They are engaged in research and projects focused on circular economy, sustainability transitions, and sustainable consumption and production.
The views expressed above are the authors’ and do not necessarily reflect the official position of DLSU, its faculty, and its administrators.