Relational Goods

Posted in Marketing and Strategy Terms, Total Reads: 460
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Definition: Relational Goods

A relational good is a good or service which cannot be enjoyed alone and requires more people like a crowd, friends, team etc to consume it. For example a disco is an example of relational good.


A person alone cannot enjoy in a disco and it requires more people to enjoy the music and the ambience. Consider the football matches in which the whole crowd cheers for the goal. It creates a synergy among the audience which would not have been the case if the same match was being watched by a person alone at home. Thus the stadium along with the match is an example of a relational good.


Thus the more number of people consuming the good the more is the value of the good. This presents an avenue for the marketers to price the product as per the expected turnout. So the ticket price of a match between India and Pakistan will be priced higher than that of one in India vs Bangladesh match.

 

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