What value is added to a product by retailers? What value is added by retailers for producers and ultimate consumers?

Retailers add significant value to a product for both producers and consumers. The value of a product refers to the satisfaction that an individual derives by transacting a product. In order to attain value to a product, the utility derived from it must exceed the sacrifice of dollars spent on its purchase/ sale.

Producers aim to increase the sales and awareness about a product. Retailers add significant value to a product for producers by:

• Engage in the use of banners of the desired product. This helps in attracting potential customers. 
• Provide special discounts to generate the sales.
• Ensure that the products are organized properly. This makes it easier for the customer to fetch the right product in a hassle free manner. Thus, sales for the desired product increase.

Lastly, retailers add significant value to a product for consumers by:

• Providing services.
• Making consumers aware of a wide range of products or services.
• Assisting in evaluating alternatives.
• Demonstrating about product's features which can help consumers decide which product can satisfy their needs. 
• Offering discounts, rewards, offers, etc. Customers usually feel satisfied when they spend less to purchase a high priced product.

Services, environment and knowledge offered to customers by retailers can enhance consumers' purchase experience and influence their attitudes and perceptions towards the product or a brand.