Symbolic Value

Symbolic value signifies the immaterial value attributed to an object or an idea and communicates its symbolic meaning. The meaning is highly dependent on how it is interpreted and appropriated in a socio-cultural context. For example, advertisements are often interpreted differently depending on the socio-cultural context. Benetton's advertisements have been perceived as controversial and received different interpretations, acceptance, or reactance in different cultures. A product's symbolic value communicates meaning beyond its material aspects, representing, for example, status, trendy design, environmentally friendly, and so on. Besides being a transportation vehicle, a car can communicate symbolic value such as status, safety, or both. The first person to recognize this in the field of marketing was Sidney J. Levy, who wrote the article “Symbols for Sale,” published in Harvard Business Review in 1959. He argued that people buy products for symbolic meanings and not merely for functional reasons.

The material value represents the material conditions, whereas the symbolic value is dependent on interpretations in a sociocultural context. The material value can therefore be more easily determined, measured, and exchanged in monetary terms compared to symbolic value. For example, the price of art glass in terms of its material value can be determined based on raw material and cost of production. The price of art glass in terms of symbolic value is much more dependent on societal expectations. An advertisement showing mineral water communicates its material value, which is carbonated water. An advertisement showing successful sportspeople drinking mineral water communicates that mineral water has qualities desired by such people or that consumption of such mineral water will give a person sporty appeal.

Different design elements contribute to symbolic value. The use value (Karl Marx) or functional value (Jean Baudrillard) of a citrus press is communicated by how well it manages to press lemons into lemon juice. The symbolic value of the famous Alessi citrus press designed by Philippe Starck communicates its extraordinary design compared to other citrus presses. It is probably perceived by many consumers as more appealing for its symbolic value, involving aesthetic elements, than for its use or functional value.

Symbolic value should not be discussed only in relation to products or services, but also in relation to class or socioeconomic conditions. A person's income, education, work, and living area communicate positioning in society and often have strong symbolic value for inclusion or exclusion in a social group. Over time, consumption has become more important as symbolic value for social success; for example, emphasis on brands during the last decades. Social emulation is particularly noticeable for visible consumption, for example, neighbors influencing each other to purchase status products such as cars and decorative flower pots. Thorstein Veblen discussed, long ago, conspicuous consumption. Pierre Bourdieu's definitions of symbolic capital encompass cultural, social, and economic capital. They can all be said to represent symbolic value communicating social signs.

When discussing symbolic value, it seems necessary to discuss the meaning of value. The economic value or exchange value (e.g., Baudrillard 1996) is often discussed in business situations rather than the more elusive symbolic value. The economic value or exchange value represents the value determined by the market. Another value is customer value, defined by Albert Lai (1995, 384) as “the buyer's evaluation at the time of a product purchase.” Glen L. Urban and John R. Hauser (1993, 213) define customers' concern for value as “the tradeoff between the benefits of a product and the price paid.” It implies that the customer will choose the product with the most utility per money paid. The economic, exchange, and customer values focus on the purchasing moment. In particular, the economic value focuses on monetary appraisal.

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