Traditionally, the determination of value and value creation has primarily focused on the direct beneficiaries of that value creation, rather than on the broader impact of, and on, all stakeholders; traditional value and value creation models, inclusive of supply chains, are often linear and overlook the fact that our natural resources are finite (see Table 1). This oversight neglects consideration of the value added or detracted to society in the new product development process and creates the potential for dysfunctional value co-creation. However, to meet the targets of Sustainable Development Goal 12: Responsible Consumption and Production, marketers must reconsider the manner in which value is conceptualized and measured. Specifically, marketers must break away from unsustainable value creation by acknowledging and harnessing the ability for value to be reiterative and sustainable.
To guide marketers, the present work utilizes physics-based rationale to illustrates how value in a product oscillates between intrinsic and extrinsic value (see Figure 1, Figure 2), and that the preservation and stewardship of the intrinsic value during the product development process results improved value for all stakeholders. Specifically, the authors argue that, similar to energy, value is a state, rather than a trait, of a product that is dependent on the product development process and the stage of the product lifecycle. Three propositions are presented: Proposition 1 asserts that the value of a product is a state-based attribute, rather than a static trait. Value oscillates between intrinsic to extrinsic value throughout the production, manufacturing, and recycling processes. Proposition 2 suggests that the preservation and stewardship of intrinsic value in the product development process creates investor value, societal value, and customer value. Proposition 3 asserts that when intrinsic value is acknowledged and appropriately stewarded through the product development process, the creation of extrinsic value can simultaneously create higher customer value and societal value, while stabilizing investor value. The authors propose a comprehensive value logic (CVL; Table 1) that considers the preservation of intrinsic value in the new product development process, a concept of value that is reflective of both marketing scholarship and emerging marketing practice.
