positional good

positional good definition - business

positional good

A good or service whose quality is judged in relative rather than absolute terms. For example, the desirability of a home is judged on the basis of homes that are owned by neighbors or peers. Likewise, a vehicle may be a positional good desired for its social status rather than its functionality. Positional goods and services generally experience limited availability, which affects their desirability.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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