The Value of an Offering Is Described as the ________

question 4

Multiple Choice

The value of an offering is described as the ________.

• A) price consumers are charged for a product
• B) cost of manufacturing a product
• C) degree to which consumer demand for a product is positive
• D) sum of the tangible and intangible benefits and costs to customers
• E) intangible benefits gained from a product

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Definitions:

Income Effect

Refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in the prices of goods, leading consumers to replace more expensive items with cheaper alternatives.

Demand

The desire and ability of consumers to purchase goods and services at different prices, reflecting how much of a product consumers are willing and able to buy.

Surge Prices

A dynamic pricing strategy that increases prices in response to high demand and limited supply, commonly used in ride-sharing services.