In value, it must be worn to others.
On the other hand, when we see the products are similar, why are you selling so expensive? Behind this is the brand value. Brand value has two parts, one part is called protection value, which has an effect in the buying environment, allowing customers to make quick choices and buy with peace of mind.
Part of it is to demonstrate value, generate value in the use environment, and allow users to convey some kind of information. If you have money, you can’t take out your passbook anytime. You roll up your sleeves and have a Rolex in your hand, or tap the Bentley car key on the table to show it.
Let’s do a thought question: Is there any negative external value?
Yes, for example, Pampers was named by Time Magazine as one of the 100 greatest inventions that changed human life. But when it was launched, the appeal was to “use Pampers to let mothers sleep well”. As a result, mothers would feel guilty and would not admit the account.
Later, the appeal was changed to “Use Pampers, the baby sleeps dry and sound.” The baby sleeps soundly, and the mother can solve it if he can’t sleep well, and then it sells.
Fundamentally speaking, brands are used to reduce information costs. We need to know this, we will be confident when we are a brand, and we will not think that my brand is a fool, collects IQ tax, and generates so many brand premiums out of thin air.
Seven, goodness has a network effect
There are dozens of definitions of business models in the world, but I think the best definition is made by Professor Wei Wei and Zhu Wuxiang. Wei Zhu’s definition is “Business model is the stakeholder’s Transaction structure”.
Using this definition, we can further refine the enterprise business model and brand business model. The business model of a company is the transaction structure of the company and its stakeholders, but for us, what we must practice every day is the brand business model, which is the transaction structure of the brand and customers.
From the perspective of economics, the transaction structure is the contract. There is a mentality behind contract thinking called “goodness-oriented”. The laws portrayed by nature lead to good and are portrayed in the depths of our basic laws.
There is a book called “The Evolution of Cooperation”.