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Product quality, service, and price were the three factors identified as being major determinants of a customer's perception of value. Contrast the value formula you would use for a business that prioritizes premium product quality and superior service over lower prices. Explain how this formula may differ from one focused on low-cost, budget-friendly products and services.

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Final answer:

When a business prioritizes premium product quality and superior service, the value formula focuses on delivering high-quality products and exceptional service. In contrast, a value formula for a business focused on low-cost, budget-friendly products emphasizes affordability and cost savings.

Step-by-step explanation:

When a business prioritizes premium product quality and superior service over lower prices, the value formula would focus on delivering high-quality products and exceptional service to customers. The formula may prioritize factors such as product features, performance, durability, reliability, and customer satisfaction. In this case, the value formula would emphasize the overall experience and perceived value provided to customers through the premium quality and superior service.

On the other hand, a value formula for a business focused on low-cost, budget-friendly products and services would prioritize factors such as affordability, cost savings, competitive pricing, and value for money. The emphasis would be on providing products and services at a lower price point while still meeting customer needs and expectations. This formula would appeal to price-sensitive customers who prioritize cost savings over other factors.

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