Which of the following statements about customer value is most accurate?
A) Target customers receive customer value in terms of a combination of benefits (quality, convenience, etc.) at any price.
B) Loyal customers are less profitable to firms in the long run since they expect lower prices over time in order to remain loyal.
C) Research suggests that all firms can be successful by being all things to all consumers.
D) It is impossible to place a dollar value on a loyal, satisfied customer.
E) To create value for targeted buyers, firms must build long-term relationships with them.

Question

Quizplus · Accepted Answer

Creating value for targeted buyers involves building long-term relationships with them. This means understanding their needs, preferences, and behaviors and tailoring products and services to their unique requirements. As a result, firms can establish a loyal customer base that drives repeat business and referrals, leading to sustained growth and profitability. Option A is incorrect because customer value is not just limited to benefits but also includes the price paid for those benefits. Option B is incorrect because loyal customers can actually be more profitable in the long run due to their repeat business and willingness to pay premium prices. Option C is incorrect because attempting to be all things to all consumers is not feasible or effective and can dilute a firm's value proposition. Option D is incorrect because it is possible to calculate the lifetime value of a loyal, satisfied customer based on their expected repeat purchases and referrals.

Which of the Following Statements About Customer Value Is Most