For a value for the firm requires that a firm:
A)Earns profits for shareholders,then uses these profits to satisfy the interests of other stakeholders.
B)Creates customer loyalty,that can then be converted into profit through increasing prices.
C)Creates value for customers,then appropriate some of that value as profit.
D)Creates value for employees through attractive pay,benefits,and working conditions,then relying upon employees to drive customer satisfaction and,eventually,profits.

Question

Quizplus · Accepted Answer

Creating value for customers is the foundation of any successful business. By doing so, firms are able to satisfy customer needs and wants, which in turn leads to customer loyalty and increased profits. Appropriating some of that value as profit is necessary for the survival and growth of the firm. This approach is known as the customer value creation-profitability link. Option A, B and D do not necessarily focus on creating value for the customers which is essential for the firm's survival.

For a Value for the Firm Requires That a Firm