Which of the following statements is true about customer value?
A) The customer value equation is represented by B = V/P, where B = benefits, V = value, and P = price.
B) Value can always be increased for a customer by increasing the price of a product or service.
C) A company can succeed in a market only if its perceived value is equal to, and not lesser than or greater than, its competitors.
D) A company that has high perceived value can charge more than its competitor for the same product.

Question

Quizplus · Accepted Answer

When a company has high perceived value, it can charge more than its competitor for the same product. The customer is willing to pay more for the perceived better quality or additional benefits offered. Option A is incorrect as the customer value equation is represented by V = B/P, where V = value, B = benefits, and P = price. Option B is incorrect as increasing the price does not always increase value for the customer. Option C is incorrect as a company can succeed in a market if its perceived value is higher than its competitors, not just equal to it.

Which of the Following Statements Is True About Customer Value