Question 1

Cite an example of how companies can build value with uniqueness and shared values.

Accepted Answer

One example of how companies can build value with uniqueness and shared values is through the creation of a strong brand identity. For instance, Apple Inc. has successfully built its brand around the values of innovation, simplicity, and design. These values are not only unique to Apple but are also shared by its target market, which consists of tech-savvy consumers who appreciate high-quality, innovative products.

Apple's unique design and innovative technology set it apart from its competitors, while its commitment to these values resonates with its customers, creating a sense of shared values. This has not only helped Apple to build a loyal customer base but has also allowed it to charge premium prices for its products, thereby adding significant value to the company.

Moreover, Apple consistently communicates these values through its marketing and branding efforts, further reinforcing its unique value proposition and fostering a strong connection with its customers. This strategy has proven to be highly effective, with Apple consistently ranking as one of the most valuable brands in the world.

Therefore, by establishing a unique brand identity and aligning it with the values of its target market, companies like Apple can build significant value and achieve a competitive advantage in the market.

Question 2

Explain the role of credibility and how to build it.

Accepted Answer

Credibility is the quality of being trusted and believed in. It is essential in building strong relationships, whether personal or professional, and is crucial for success in various aspects of life. In order to build credibility, one must focus on consistency, transparency, and integrity.

Consistency is important in building credibility because it shows that you are reliable and can be counted on. This means delivering on promises, meeting deadlines, and maintaining a strong work ethic.

Transparency is another key factor in building credibility. Being open and honest about your actions and intentions helps to build trust with others. It also means admitting to mistakes and taking responsibility for them, which can actually enhance credibility in the long run.

Integrity is perhaps the most important aspect of building credibility. Acting with integrity means adhering to strong moral and ethical principles, and consistently doing the right thing even when it may be difficult. People are more likely to trust and respect those who demonstrate integrity in their actions.

In addition to these key factors, building credibility also involves actively seeking feedback, being open to constructive criticism, and demonstrating expertise in your field. By consistently demonstrating these qualities, one can build and maintain a strong sense of credibility in their personal and professional lives.

Question 3

Long-term durability is not what customers perceive as the ultimate value.

Accepted Answer

Long-term durability is often perceived by customers as a significant aspect of a product's value because it ensures that the product will last for a long time, thereby providing a good return on their investment.

Question 4

One way to build customer loyalty is to:
A) use reverse attribution theory to create enhanced value.
B) use promotional giveaways.
C) provide exceptional perceptions of value.
D) all of the above

Accepted Answer

Providing exceptional perceptions of value is a key strategy in building customer loyalty, as it ensures customers feel they are receiving more than what they pay for, leading to satisfaction and repeat business.

Question 5

Value arises from a tradeoff between:
A) expectation and reality.
B) perception and reality.
C) benefits gained and efforts/time expended.
D) benefits gained and costs expended.

Accepted Answer

The answer of Value arises from a tradeoff between:
A) expectation...

Question 6

Companies cannot wait years for their customers to see long-term value, so they can:
A) create an enhanced perception of value.
B) use expert reviews to enhance value.
C) use customer reviews to demonstrate value.
D) none of the above

Accepted Answer

Companies can create an enhanced perception of value by improving marketing strategies, branding, and customer experience to make customers perceive immediate benefits.

Question 7

The letter "E"in the LIFE acronym stands for
A) excellence (in service).
B) essence of value.
C) expectations.
D) exceptional value.

Accepted Answer

The answer of The letter "E"in the LIFE acronym stands...

Question 8

Marketing scholars define perceived value as a "subjective perception''of the tradeoff between multiple benefits and sacrifices, relative to competition.

Accepted Answer

Perceived value is indeed considered a subjective assessment by consumers, weighing the benefits they receive from a product or service against the sacrifices they make (such as cost), and this evaluation is often made in comparison to competing offerings.

Question 9

Intrinsic value arises from the:
A) core product or service itself.
B) perception of value by the customer.
C) emphasis on product value by the provider.
D) all of the above

Accepted Answer

Intrinsic value is derived from the core product or service itself, independent of external perceptions or emphasis.

Question 10

Associated value of a product goes beyond the core product, but is still essential to the product.

Accepted Answer

The associated value of a product includes additional benefits or services that complement the core product, enhancing its overall value proposition and user experience, but is not the core product itself.

Question 11

Which of the following examples is NOT an example of something a company can do to enhance extrinsic value?
A) packaging
B) multiple varieties
C) guarantees
D) add-ons

Accepted Answer

Multiple varieties enhance intrinsic value by offering different versions of a product to meet diverse customer needs, rather than enhancing extrinsic value, which is related to the perceived value added through external factors like packaging, guarantees, and add-ons.

Question 12

Customers will perceive long-term warranties as:
A) a method used by the company to gouge the customer.
B) an unnecessary expense.
C) of higher value than short-term warranties.
D) extremely valuable.

Accepted Answer

Customers often perceive long-term warranties as offering more value than short-term warranties because they provide extended protection and assurance over a longer period, which can be seen as beneficial and worth the investment.

Question 13

To enhance value through goodness of product fit:
A) make sure you have responded to customer comments and altered your product or service accordingly.
B) think of ways to allow customers to customize your product or service.
C) think of customers as individuals, not demographic groups.
D) back up your product with a clear warranty so your customer will feel comfortable being able to fix a poor fit.

Accepted Answer

The answer of To enhance value through goodness of product...

Question 14

Packaging enhances the value of a product or service, even if core value remains unchanged.

Accepted Answer

Packaging can significantly enhance the perceived value of a product or service by improving its presentation, providing additional information, ensuring safety during transportation, and facilitating easier storage and use, thereby positively influencing consumer perception and experience.

Question 15

Industrial intimacy:
A) comes from better understanding the specific needs and wants of customers.
B) means allowing customers to select from menus of product characteristics.
C) comes from focusing on what is important to the customer.
D) all of the above

Accepted Answer

Industrial intimacy involves understanding the specific needs and wants of customers, focusing on what is important to them, and often allowing them to select from menus of product characteristics to better meet their needs.

Question 16

An intelligent system is simply a computer that learns from your customers' choices.

Accepted Answer

An intelligent system encompasses more than just learning from customers' choices; it involves the use of artificial intelligence and machine learning to analyze data, make decisions, and perform tasks that typically require human intelligence, across various applications beyond customer choices.

Question 17

Smart companies connect with their customers through:
A) experiences.
B) targeted advertising.
C) the Internet.
D) all of the above

Accepted Answer

The answer of Smart companies connect with their customers through:
A)...

Question 18

Small companies can compete against larger ones if they offer:
A) add-ons.
B) a feeling of comfort and fit.
C) competitive pricing.
D) none of the above

Accepted Answer

Small companies can compete against larger ones by offering a unique feeling of comfort and fit, which can differentiate them and attract customers seeking personalized experiences.

Quiz 10: Exceed Expectations With Value

Cite an example of how companies can build value with uniqueness and shared values.

Explain the role of credibility and how to build it.

Long-term durability is not what customers perceive as the ultimate value.

One way to build customer loyalty is to:

Value arises from a tradeoff between:

Companies cannot wait years for their customers to see long-term value, so they can:

The letter "E"in the LIFE acronym stands for

Marketing scholars define perceived value as a "subjective perception''of the tradeoff between multiple benefits and sacrifices, relative to competition.

Intrinsic value arises from the:

Associated value of a product goes beyond the core product, but is still essential to the product.

Which of the following examples is NOT an example of something a company can do to enhance extrinsic value?

Customers will perceive long-term warranties as:

To enhance value through goodness of product fit:

Packaging enhances the value of a product or service, even if core value remains unchanged.

Industrial intimacy:

An intelligent system is simply a computer that learns from your customers' choices.

Smart companies connect with their customers through:

Small companies can compete against larger ones if they offer: