Which of the following is necessary for an effective customer value proposition (CVP)?
A)It must be offered to a different group of customers than that addressed by competitors.
B)It must offer better value than the competitors.
C)The product must be lower in cost than the competitors.
D)It must be offered to a very narrow group within the general market.

Question

Quizplus · Accepted Answer

A customer value proposition must offer better value than competitors in order to be effective. Other factors such as differentiation and targeting specific customer groups can also contribute to a strong CVP, but better value is a key component. Lower cost may be a way to achieve better value, but it is not the only or necessarily the best way. Narrow targeting may limit the potential audience and therefore the effectiveness of the CVP.

Which of the Following Is Necessary for an Effective Customer