Question 1

Perceived costs can be seen as being composed of three elements: monetary, time and psychic.

Accepted Answer

Perceived costs can indeed be broken down into monetary, time, and psychic costs. Monetary costs refer to actual financial expenses, time costs refer to the amount of time required for an activity or task, and psychic costs refer to the mental or emotional effort expended during an activity or task.

Question 2

There is universal consensus as to what factors make up perceived customer value.

Accepted Answer

While there may be general agreement on some factors that contribute to customer value (such as product quality, pricing, and customer service), different customers may have varying perceptions of what constitutes value, and this can vary across different industries and markets. Therefore, there is not a single universally agreed upon set of factors that make up perceived customer value.

Question 3

Customer value can be defined as the difference between perceived benefits and perceived costs.

Accepted Answer

This is the commonly accepted definition of customer value. Perceived benefits refer to the advantages or value that a customer thinks they will gain from a product or service, while perceived costs refer to the disadvantages or sacrifices they think they will incur in order to acquire or use it. The greater the perceived benefits relative to the perceived costs, the higher the customer value.

Question 4

Small businesses generally have no need of any formal market research.

Accepted Answer

While small businesses may be able to rely on informal feedback from customers and personal experience, conducting formal market research can help them better understand their target audience, competitors, and industry trends, leading to more informed business decisions.

Question 5

Quality function deployment is an approach that takes the desires of consumers and explores how well the individual activities of the business are meeting those desires.

Accepted Answer

Quality function deployment (QFD) is a process that ensures that a product or service is designed to meet the needs of customers. It starts with identifying what the customer desires and then evaluates how well the company is meeting those desires through its processes, products, and services.

Question 6

Quality function deployment as an approach can only be used in manufacturing concerns.

Accepted Answer

Quality function deployment (QFD) can be used in any type of organization to improve the quality of their products or services. It is not limited to only manufacturing concerns.

Question 7

The concept of customer value is based essentially on the price of the product or service.

Accepted Answer

Customer value is more than just the price of a product or service. It includes the perceived benefits and quality of the product or service compared to the cost. Other factors such as brand reputation, customer service, and convenience also contribute to customer value.

Question 8

It is ineffectual to listen to customers through comment cards and online surveys.

Accepted Answer

Comment cards and online surveys are effective ways to gather feedback from customers. They allow businesses to collect quantitative data and customer insights that can inform decision-making and help improve overall customer experience. However, it is important to also seek out qualitative feedback through methods such as focus groups or one-on-one interviews in order to gain a deeper understanding of customer needs and preferences.

Question 9

Since many customers don't know exactly what they want small business owners should only listen to him/herself.

Accepted Answer

Small business owners should listen to their customers in order to understand their needs and preferences. It's important to gather feedback from customers and use it to improve the products or services offered. Ignoring customer input may lead to a decrease in sales and a failure to meet the needs of the target market.

Question 10

Studies that indicated that firms with superior customer value outperform their competitors on ROI and market share gains.

Accepted Answer

Numerous studies have shown that firms with a focus on delivering superior customer value tend to outperform their competitors on measures such as return on investment (ROI) and market share gains. By providing high-quality products, services, and experiences that meet or exceed customer expectations, these firms are better able to attract and retain customers, build brand loyalty, and achieve sustainable, long-term growth.

Question 11

For any particular product customer value tends to be consistent across all customers.

Accepted Answer

Customer value can vary depending on the individual needs and preferences of each customer, as well as their budget, location, and other factors. Therefore, different customers may assign different levels of value to the same product.

Question 12

One way of gathering information about customers is through loyalty programs.

Accepted Answer

Loyalty programs often require customers to provide information such as their contact details, purchase history, and preferences in exchange for rewards or discounts. This information can be used by companies to better understand their customers and tailor their marketing strategies accordingly.

Question 13

Epistemic value is associated with a sense of novelty or simple fun.

Accepted Answer

The answer of Epistemic value is associated with a sense...

Question 14

The concept of functional value relates to the product or services ability to perform its utilitarian purpose.

Accepted Answer

Functional value refers to the product or service's ability to fulfill its intended purpose or solve a problem for the consumer.

Question 15

Market segmentation is the division of any market into a subset of customers.

Accepted Answer

Market segmentation is the process of dividing a broader market into smaller groups of consumers with similar needs or interests. These subsets, or segments, can be based on demographics, psychographics, behavior, or geographic location.

Question 16

The monetary component of perceived value is singularly associated with the purchase price of the product or service.

Accepted Answer

Perceived value also includes other monetary components such as the cost of using, maintaining, and disposing of the product, in addition to the initial purchase price.

Question 17

It is estimated that only 15% of American customers have loyalty to a single retailer, yet these customers generate between 55% 7% of that retail sales.

Accepted Answer

This statement is true. Only 15% of American customers have loyalty to a single retailer, yet they generate between 55% and 75% of retail sales.

Question 18

Net present value discounts the value of future cash flows. It recognizes the time value of money.

Accepted Answer

Net present value considers the fact that receiving money in the future is less valuable than receiving the same amount of money today, as there is a potential opportunity cost associated with waiting to receive the money. As a result, future cash flows are discounted to reflect their present value.

Question 19

The only question a small business should ask is how much they can charge their customers.

Accepted Answer

While pricing is an important aspect of any business, it is not the only question a small business should ask. They should also consider the quality of their products or services, their target market, competition, marketing strategies, financial management, and many other factors that can affect their success.

Question 20

Small businesses should only produce products and services that they know with a high degree of certainty, in advance, what customers will want.

Accepted Answer

It is not always possible or practical for small businesses to know with a high degree of certainty what customers will want in advance. Many successful small businesses have been built on innovative, new products or services that fill a need or create a new demand in the market.

Quiz 2: Your Business Idea: the Quest for Value