In order to increase value, an organization must:
A) increase perceived benefits while decreasing actual benefits.
B) increase both perceived benefits and price or cost proportionally.
C) decrease both perceived benefits and price or cost proportionally.
D) decrease price or cost while holding perceived benefits constant.

Question

Quizplus · Accepted Answer

The best choice is to decrease price or cost while holding perceived benefits constant. This will increase the perceived value of the product or service, making it more attractive to customers without reducing the benefits they receive. This can lead to increased sales and profitability for the organization. Increasing perceived benefits while decreasing actual benefits (A) or decreasing both perceived benefits and price or cost proportionally (C) will likely have negative effects on customer satisfaction and overall success. Increasing both perceived benefits and price or cost proportionally (B) may work in some cases, but it could also make the product or service less accessible to certain customers.

In Order to Increase Value, an Organization Must