Value of a Product: A Definition

Value of a product reflects the owner(s)'/buyer(s)' desire to retain or obtain a product. Individual's level of desire to retain or obtain a product depends on how much the product details and/or its performance agree with the value system of the individual. To an individual, therefore, value of a product includes cost and a subjective part associated with cost. Value of a product can be expressed in units of currency if the subjective part of it is assessed in units of currency. This paper aims to propose a definition of value of a product and develop a method to assess it in units of a currency. To test the methodology in practice, experiments are conducted and the values of two of the elements of the external envelope of residential housing projects are determined.