Superior value requires that
A) a company have the lowest cost structure in an industry.
B) the gap between perceived value and costs of production be greater than the gap attained by competitors.
C) a company create the most valuable product in the eyes of the consumer.
D) a company create the highest quality product in the eyes of the consumer.
E) a company excel in all of the building blocks of competitive advantage.

Question

Quizplus · Accepted Answer

Superior value is achieved when the perceived value of a company's product exceeds the cost of production by a greater margin than its competitors. This means that the company is able to offer a higher quality product or more benefits at a comparable price, giving it an advantage in the market. While having a low cost structure or creating a high-quality product can contribute to superior value, they are not sufficient on their own. Superior value requires a combination of factors that create a unique advantage over competitors.

Superior Value Requires That