2. Define Value For Money Value for Money (VfM) is the term used to assess whether or not an organization has obtained the maximum benefit from the goods and services it provides, within the resources available to it. It not only measures the cost of goods and services, but also takes account of the mix of quality, cost, resource use, fitness for purpose, timeliness and convenience to judge whether or not, when taken together, they constitute good value. Achieving VfM may be described in terms of the 'three Es' - economy, efficiency and effectiveness. Economy. Doing less with fewer resources, i.e. making savings. Efficiency. Doing the same as before, but with fewer resources (money, staff, space). Effectiveness. Doing more than before with the same resources as now (or less).
3. Compare Price with value when assessing a product for value for money. Comparing the quality of the product to its value. For example, a Toaster cost a high price (eg. $800) due to the brand name. But the toaster is not efficient, breaks easily or uses cheap materials for the casing. We can say that the toaster have low value but high price.
4. Explain how consumers apply criteria to evaluate a product for value for money, referring to before purchase, purchase, initial use and long term use Consumer apply criteria to evaluate a product for value of money before purchase, purchase and during usage. Consumer can receive a idea of the value of the product, before purchase from advertisements, specification and product image. When the consumer uses the product, the can judge the value of the product from its actual performance, safety and ease of use. The consumer can also evaluate the product’s value after long term usage. Such as looking at the products reliability, durability, running cost and the changes in efficiency after a period of time.
5. Discuss how the criteria in point 3 are assigned different weightings depending on the design context The consumer gain information of the product from different media before purchase. They will then evaluate the effectiveness of similar but different products. The criteria allows the consumer to apply criteria to different products and create a weighting system to help them find the most suitable product for them. Therefore the criteria allows the consumer to find the product most suitable for their needs. For example, the product can fit the consumer’s budget price or the quality of the product.
