Total Value and Sustainable Products
Total Value and Sustainable Products (100 points)
When a business is not focused on sustainability, value may be solely determined outside its customers’ interest in green behavior.
Suppose a restaurant makes a great-tasting hamburger. Very few of its customers might care whether or not the restaurant engages in green business practices.
However, what if there are two restaurants that make equally great-tasting burgers, but one is green while the other is not? Many customers may choose the green business, because the business adds value to its offerings by engaging in sustainable practices.
In the case of sustainable products, meaning those products made with an effort to be environmentally and socially responsible, sustainability plays a large role in the customers’ decisions to buy, and tends to be central to the company’s brand.
Identify a Saudi business that may not yet be focused on sustainability. Suppose this company decides it would like to deliver products that are more socially, environmentally, and economically superior.
In a 4-5 page paper, not including the cover and reference pages, present the company with the total value proposition from a sustainability perspective. In that total value proposition, include a discussion of use values and nonuse values for the business’ green products. How should the business determine WTP, WTA, or consumer surplus?