Question

You are scheduled to give a speech on strategies for enhancing customer value at your firm's next strategic planning conference. Your firm's management is keenly interested in this area because recent customer reviews indicate the company needs improvement in this area. The CEO specifically wants you to focus on discussing how the firm can develop a better understanding of customers' perceptions and assessments of the value a product or service provides to them. You have done your research on this very important subject and you have decided to emphasize a number of key points in your discussion.

Which of the following statements are true about customers' perceptions and assessments of value?

A) Customers' perceptions of value are solely based on the product's price.
B) Customer value is influenced by both functional and emotional aspects.
C) Understanding customer value is not important for a company's success.
D) Customer value is a static concept that doesn't change over time.

Answer 1

Customers' perceptions and assessments of value are influenced by both functional and emotional aspects, and understanding customer value is important for a company's success.

Step-by-step explanation:

The correct statements about customers' perceptions and assessments of value are:

1. Customer value is influenced by both functional and emotional aspects. Customer value is not solely based on the product's price, but also takes into consideration the functional benefits the product provides as well as the emotional satisfaction it brings.
2. Understanding customer value is important for a company's success. A company can improve its performance by understanding and meeting the value expectations of its customers.

Therefore, statements A) and C) are false, while B) is true.