Final answer:
The false statement about the economic value to the customer (EVC) is option d, which misconstrues EVC as the maximum a customer should be willing to pay.
Step-by-step explanation:
The economic value to the customer (EVC) is a concept companies use to determine the monetary worth of their product to a customer, based on the product's ability to improve the customer's situation compared to the current solution. To address the student's question regarding which statement is FALSE regarding EVC:
- a. This statement is true. EVC is often calculated by comparing a new product with the next best alternative that a customer is currently using or could use.
- b. This statement is also true. To capture the most value, companies may price products near the EVC but below it to entice customers to purchase their product over alternatives.
- c. True, as different customers may derive different levels of benefits from the same product, influencing EVC.
- d. False. EVC represents the value a customer gains from a product, but it is not necessarily the maximum a customer should be willing to pay. Price sensitivity, competition, and other factors affect the final price.
- e. True, EVC can often take into account the total life cycle cost or total cost of ownership, which is beneficial for estimating long-term value.
Hence, the FALSE statement concerning EVC is d. EVC represents the perceived value to the customer, not necessarily the ceiling price.