One large construction company has paid $19,000 for a Caterpillar tractor, yet when the company calculates the bundle of economic, functional, and psychological benefits of the tractor, they arrive at a figure much higher. The construction company's assessment is seen as the
A) total customer satisfaction.
B) value proposition.
C) total customer cost.
D) customer perceived benefit.
E) total customer benefit.

Question

Quizplus · Accepted Answer

The construction company's assessment of the bundle of economic, functional, and psychological benefits of the tractor is referred to as the total customer benefit. This figure takes into account all the benefits that the customer perceives from owning the tractor, including its functional capabilities as well as any psychological benefits such as brand prestige or user satisfaction. The value proposition is a statement that outlines the unique benefits that a product or service offers to customers, while total customer cost refers to the monetary cost that a customer incurs when purchasing a product or service. Total customer satisfaction and customer perceived benefit are related concepts but do not capture the full range of benefits that the construction company is considering.

One Large Construction Company Has Paid $19,000 for a Caterpillar