Marketing 2014 17th Edition by William Pride,Ferrell

Exercise 4

There are seemingly hundreds of different cell phones available on the market today. How do consumers choose? The answer is simple: consumer value. Compare the value of an Apple iPhone and a Samsung Galaxy smartphone. Begin by identifying the benefits and costs that you consider when evaluating cell phones-factors like ease of texting, overall look and feel, or purchasing price. Assign a weighting coefficient to each factor that reflects its importance to you. You could use 0-5, for example, with 0 meaning no importance whatsoever and 5 meaning absolutely important. Using the equation Value = Benefits/Costs, calculate the value for the iPhone and the Samsung Galaxy. Do these results match actual cell phone sales for the two products?