Customer Value Refers to

question 199

Multiple Choice

Customer value refers to

• A)the need of a customer to receive the highest quality product at the lowest possible price.
• B)the seeking of the least expensive product that will provide all of the most basic benefits within a product category.
• C)a statement that,before product development begins,identifies (1)a well-defined target market; (2)specific customers' needs,wants,and preferences; and (3)what the product will be and do to satisfy consumers.
• D)the unique combination of benefits received by targeted buyers that includes quality,convenience,on-time delivery,and both before-sale and after-sale service at a specific price.
• E)the cluster of benefits that an organization promises customers to satisfy their needs.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specific rate of return.

Discount Rate

The discount rate is the interest rate used to determine the present value of future cash flows in discounted cash flow analysis.

Discount Periods

Time frames during which a payer can make payment less than the nominal amount due before a specified due date to receive a discount.

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.