Question

The difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic cost of these products or services is the (Note: Porter was deleted from this edition)

A) value proposition.
B) cost advantage.
C) economic value.
D) competitive advantage.

Answer 1

The difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic cost of these products or services is the C) economic value. Economic value represents the net gain or benefit that a customer receives from a product or service after considering the cost.

Step-by-step explanation:

The difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic cost of these products or services is the economic value. Economic value represents the net gain or benefit that a customer receives from a product or service after considering the cost. It is important for businesses to understand and deliver economic value to their customers in order to remain competitive in the market.

For example, if a customer purchases a smartphone for $500 but believes that the benefits they receive from having the smartphone, such as improved communication and access to information, are worth $700, then the economic value of the smartphone to that customer is $200.