Which of the following is NOT associated with consumer customers\' perception of

Question

Which of the following is NOT associated with consumer customers' perception of value?

            A)   Cost

            B)   Convenience

            C)   Technology

            D)   Personalization

            E)   All of the above are associated with consumer customers' perception of value

In a “make or buy” decision, businesses must recognize that:

            A)   The buy decision will be more expensive because the supplier will include profit in the price.

            B)   Price is the only component of value that will matter

            C)   Costs associated with gearing up to produce a product or service in house might make it more financially attractive to outsource.

            D)   No financial return should be expected from money spent on in-house production

Which of the following is not a value attribute for consumer customers?

            A)   Cost

            B)   Personalization

            C)   Ethical issues

            D)   Dependability of delivery

            E)   Use of technology

Explanation / Answer

1. The answer is "e" -  All of the above are associated with consumer customers' perception of value . Perceived customer value means that customers believe that a product will be able to satisfy its needs (or not). The perceived value are driven by value propositions, which are benefits offered by a product or a service by a company to its customers.

For a consumer customer, cost will mean what will be the cost for the time of ownership. Convenience for consumer customer will mean how easy is it to get. Technology will mean that do the consumer customer is required to have technological skills to buy the product. Personalization will mean whether the business will treat the consumer customer as special.

2. The answer is option "b" -  Price is the only component of value that will matter. Other factors and components like cost of capital, hurdle rate, fixed costs, salvage value etc. have to be considered. Intangible factors like quality will also have to be considered.

3. The answer is "c" - ethical issues. The applicable value attributes and consumer concern are shown below:

Value attributes Consumer concern cost what is the cost for total time of ownership personalization will the business treat the consumer as special dependability of delivery will the delivery be dependable and how convenient it will be Use of technology do i need technological skills to buy and use the product

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