What does the formula V = WIG / P represent in marketing?

The formula V = WIG / P stands for Value = What I Get / Price, which highlights a fundamental concept in marketing and consumer behavior. This equation reflects how consumers assess the value of a product or service. In essence, it signifies that the perceived value of a purchase is determined by the benefits or utility received (What I Get) in relation to its cost (Price).

When consumers evaluate a product, they weigh the advantages, features, or overall satisfaction they expect to receive against the price they must pay. If the perceived benefits exceed the price, customers are likely to view the purchase as a good value. This understanding is critical for marketers, as it emphasizes the importance of effectively communicating the benefits of a product and ensuring that it aligns with consumer needs and expectations to enhance perceived value.

In this context, focusing on what the consumer gains helps shape marketing strategies that highlight product benefits, enhance customer satisfaction, and ultimately drive sales. Understanding this ratio can also inform pricing strategies, promotions, and product development to better meet consumer demand.