Question

______ is a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. from the customer's perspective, many but not all of those costs are reflected within the price paid for the offering. there are other types of costs, such as time invested in the purchase process or the opportunity costs of choosing one offering over another. however, for most purchasers the vast majority of costs are associated with the purchase price.

a. Customer loyalty
b. Price elasticity
c. Cost-benefit analysis
d. Market segmentation
e. value

Answer 1

The concept described is value, which considers the benefits received versus the costs incurred in purchasing, including price, time, and opportunity costs. Examples include bundling by cable companies and cost/benefit analysis.

Step-by-step explanation:

The ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits is known as value. This value is not solely determined by the purchase price but also includes other costs such as time investment and opportunity costs.

An example that illustrates the concept of providing value through alternative pricing strategies is bundling, where a firm sells two or more products or services together for a better price, as seen with cable companies offering packages that include cable, internet, and a phone line.

Similarly, a cost/benefit analysis is a process where you compare the sacrifices and gains to make a decision, considering marginal costs and benefits. Opportunity costs, such as the price of a bicycle representing the amount of other consumption forfeited, also play a key role in defining the true cost from a customer's perspective.