Context matters II

Notice you pay $1.20 for a can of coke at the neighbourhood shop, $0.70 at the supermarket and $4 at the salad place in CBD (why on earth does a salad place serve coke anyways?). As it turns out, prices and value of things are not intrinsic in a single product or service. The context for their purchase, use or subsequent consumption matters for the valuation.

Context forms part of the answer to “what is this for?” And that is why, when the same useless plastic ring is peddled around as a pet dog puzzle (for you to stuff food in the ring) increases its value. The can of coke, when consumed with a meal simply raises its value for the customer and hence allows the vendor to charge more.

Whether we are businesses, teachers, managers or parents, being able to create and set up the context to generate value is important. With the right context, people are able to make better decisions and work better. In long run, we all grow when the context is suitable.