9. The Fourth Deduction: The Price-Value Hypothesis demonstrates the dynamics

The abscissa in the diagram of The Evaluating Audience represents value as well as price (See 3.!) as they, actually, designate two aspects of the same phenomenon. The evaluation of the population of buyers is shown in its spread, whereas the price of the seller is absolutely defined. When we put the two actors into the same diagram we will have a distribution cut by a line. This model is called the Price-Value Hypothesis, PVH. The part of the population to the right of the price line represents actual buyers in this very moment (See 3.!), while the one to the left is mere potential buyers (See 7.!). Only the buyer evaluations close to the price line are by definition reliable; higher and lower values are more hypothetical. Usually nobody pays more than the asking price. The population to the left of the price line would have a number of reasons for not finding the product being worth the price asked; it is not available, they just bought one, it is functionally non-satisfactory, it is just not attractive, they don’t have the economic resources or priorities, etc. The PVH can be used for a dynamic analysis of the consequences of changes in price, evaluation and awareness.