· What are "Value Added Services"? How does a company measure the overall "value" of such services?
Answer: value added services are not a form of basic service. It adds value to total service offering. It is in addition to the basic core service provided by the service provider. Thus, Value added service does not cannibalize basic core service.
For example, mobile companies provide basic core service - "Voice call". They may have Value added service like "Voice message" which is not the basic core service, but adds value to the core service and increases the value of total offering.
There is no direct way to measure value of value added service. It may be measured in terms of customer satisfaction sometimes. Another way of measuring the value of such services is how much extra revenue these services generate for the company over stand alone core services could generate. But most of times, value of value added services is more than financial figures show as it adds to customer satisfaction and customer retention also.