What is use value and esteem value?

Answer 1

Use value or functional value is the perceived value of goods or services to a customer because the goods/services do what they are supposed to do in the way they do it. Thus a vacuum cleaner that cleans better than another has higher functional value - most customers would be willing to pay more for it,

Esteem value is the value of goods or servcies according to the status they afford to the buyer/user. Thus, many customers will pay more for a branded item of clothing because they want to 'wear the name' - they feel it gives them some status a non-branded item would not.

Answer 2

Use value refers to the practical benefits or usefulness that an item provides to the user, while esteem value is the perceived social status or prestige associated with owning or possessing that item. Use value is based on utility, functionality, and satisfaction derived from using the item, whereas esteem value is more about how the item enhances one's social image or status.