Differentiate extrinsic value from intrinsic value.
In economics, intrinsic value is the value of a product that comes from the value of its inputs. Extrinsic value can be seen as “extra” value that is added to it by the perceptions of society. For example, with a hybrid car, the intrinsic value has to do with the cost of the materials that go into the cars. It also has to do with the styling and the quality of the engineering. But such a car has extrinsic value as well. Some consumers feel such a car is more valuable because it makes a statement about the importance of being “green.”