Question 1

Three key sources of customer-perceived performance include perceived product performance,perceived service quality,and perceived company or brand reputation.

Accepted Answer

These are indeed three key sources of customer-perceived performance.

Question 2

A product-based business can use its order cycle to create important sources of customer value that the business's consumer-focused competitors will never see.

Accepted Answer

False

Question 3

Studying the experience of lead users provides insights for improving a product by adding new features or modifying it in other ways.

Accepted Answer

Studying the experience of lead users can provide valuable insights for improving a product and adding new features. Lead users are early adopters who are likely to have specific needs and requirements that can inform product development.

Question 4

The "day-in-the-life-of-a-customer" approach may be described as "stapling yourself to an order."

Accepted Answer

The "day-in-the-life-of-a-customer" approach involves following a customer's experience from start to finish, often by "stapling yourself to an order" to understand the process and identify areas for improvement.

Question 5

A product that will eliminate or significantly reduce the usage costs that customers presently
incur offers a substantial economic value.

Accepted Answer

If a product can decrease or eliminate usage costs for customers, it will save them money and provide economic value.

Question 6

Which of the following is true regarding lead users?
A)They are customers who are unwilling to purchase products that do not provide a complete customer solution.
B)They are users who wait to see whether the product or service will deliver meaningful benefits.
C)They are skilled users who extend the boundaries of a product's application to achieve a more desired customer solution.
D)They are skeptical customers who are unwilling to purchase a product unless they are assured of meaningful benefits associated with using the product.
E)They are the last customers to adopt a new product or service.

Accepted Answer

Lead users are skilled users who often modify or adapt a product or service to meet their specific needs or to achieve a more desired customer solution. They are not necessarily skeptical or unwilling to purchase a product, but rather are ahead of the curve in terms of identifying emerging trends and needs in a particular market.

Question 7

We can create a set of preference curves by examining how customers make trade-offs when choosing among various combinations of price and benefits,using conjoint analysis.

Accepted Answer

Conjoint analysis is a commonly used market research technique for understanding consumer preferences and determining the optimal combination of product features that will maximize customer satisfaction. By analyzing customers' trade-offs between various product attributes and their willingness to pay for each feature, companies can develop a set of preference curves that show how different segments of their target market value each feature relative to its price.

Question 8

Empathic design uses statistical surveys to collect quantitative information about customer needs.

Accepted Answer

Empathic design emphasizes understanding and empathizing with the customer's emotions and experiences, often through direct observation and interviews, rather than relying solely on statistical surveys for quantitative data.

Question 9

Which of the following terms refers to highly knowledgeable and skilled users who often extend the boundaries of a product's application to achieve a more desired customer solution?
A)mainstream users
B)captive users
C)lead users
D)spinners
E)laggards

Accepted Answer

Lead users refer to highly knowledgeable and skilled users who often extend the boundaries of a product's application to achieve a more desired customer solution. Mainstream users are average consumers who use a product or service in its intended way. Captive users are customers who are forced to use a particular product or service, often due to limited options or contractual obligations. Spinners and laggards are not commonly used terms in the context of user behavior.

Question 10

Companies seeking discontinuous innovations need more than incremental product improvements that come from lead user analysis.

Accepted Answer

Discontinuous innovations require radical and transformative changes in products or services, which cannot be achieved through incremental improvements based on lead user analysis alone. Discontinuous innovations often require a significant shift in technology, business models, or customer needs, and may require new approaches such as disruptive innovation, open innovation, or crowdsourcing to achieve breakthrough results.

Question 11

Reverse innovation begins by identifying new product benefits.

Accepted Answer

Reverse innovation starts with developing products in emerging markets before bringing them to developed markets, focusing on affordability and simplicity rather than initially identifying new product benefits.

Question 12

The formula for calculating the customer value index is: Brand Image+Warranty+Price +Callbacks.

Accepted Answer

The formula for calculating the customer value index includes Brand Image, Warranty, Price, and Callbacks.

Question 13

Moreno Motors Inc.identifies that bikers are usually the first users of their newly launched products.The firm sends consultants to biker rallies to discover how bikers who use Moreno motorcycles modify them to extend their usage,as well as the desired benefits.Recent visits revealed that bikers were seeking items,such as bolt-on chrome products,horsepower performance enhancers,and improved braking systems in Moreno motorcycles.In this example,Moreno Motors Inc.is studying which of the following groups of customers?
A)lead users
B)mainstream customers
C)laggards
D)captive customers
E)spinners

Accepted Answer

Moreno Motors Inc. is studying lead users, who are innovative and often the first to adopt new products. The fact that the firm is seeking information from these users to improve their products indicates that they are trying to innovate and stay ahead in the market.

Question 14

Lead users are users who purchase a product only after it has been used by the majority of mainstream users.

Accepted Answer

Lead users are users who are ahead of mainstream users in a particular market and actively seek out innovative solutions to their needs. They often provide valuable feedback and insights to companies, which can then be used to improve products and services for mainstream users.

Question 15

NaturalBeauty Inc.is a firm that manufactures a range of herbal cosmetic products under the brand name NaturalBeauty.To improve its odds of developing successful disruptive innovations,the firm listens to its lead customers and identifies product benefits that are not met by the existing cosmetic products in the market.After careful analysis,the firm chooses the most lucrative opportunity and uses an "invent to order" process to develop a new product.In this example,NatureFresh Inc.is using which of the following methods?
A)reverse innovation
B)diversification
C)vertical integration
D)horizontal integration
E)market penetration

Accepted Answer

Reverse innovation involves creating products specifically designed to meet the needs of customers in emerging markets, often by identifying unmet needs and developing innovative solutions.

Question 16

The main difference between crowdsourcing and mass collaboration is the level of multidirectional interaction.

Accepted Answer

Crowdsourcing involves interacting with a large group of people or "crowd" to obtain input, feedback, or to complete a task, usually through online platforms. In contrast, mass collaboration refers to a more complex and ongoing process of collaboration among a large group of people working towards a common goal with multidirectional interaction between participants. Therefore, the main difference between the two is the level of multidirectional interaction.

Question 17

The perceived customer value is the sum of the relative performance and the relative cost of purchase.

Accepted Answer

Perceived customer value is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering compared to the perceived alternatives, not merely the sum of performance and cost.

Question 18

Which of the following is a form of the emphatic design?
A)creating a database of customers' demographic details
B)filming customer product use
C)conducting an online survey of customers' preferences
D)using social media to interact with customers
E)creating a database of customers' buying habits

Accepted Answer

Filming customer product use is a form of the emphatic design, which involves observing and understanding the experiences and needs of customers to design products that better meet their needs. The other options listed involve gathering customer data, but do not necessarily involve direct observation of their experiences.

Question 19

A product's life-cycle cost is the sum of the purchase price and the costs of acquiring,using,owning,maintaining,and disposing of the product.

Accepted Answer

A product's life-cycle cost includes all of these costs, not just the purchase price.

Question 20

For products that project a "brand personality," there is an opportunity to create customer value through the delivery of emotional benefits.

Accepted Answer

Products that project a "brand personality" have the opportunity to create emotional connections with customers, which can lead to increased customer loyalty and brand advocacy. This emotional connection can be a valuable aspect of customer value.

Quiz 4: The Customer Experience and Value Creation