Value is subjective and objective
What is perceived value?
iPhone vs. imitation iPhone
iPhone is perceived to have the greater value as it is an officially licensed product. Even though both products are virtually identical one would pay more for the official product for it's perceived value.
Producer - someone who produces
Consumer - someone who consumes
Are companies risk averse? Yes
They will take the option with the less risk
Consumers are subjective (irrational)