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Customer Perceived Value Is Based on Two Components

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Essay

Customer perceived value is based on two components. Explain these two components and apply these value concepts to the pricing of a Caterpillar tractor.


Definitions:

Performance Standards

Benchmarks or criteria used to assess the quality or effectiveness of an individual's work, guiding expectations and evaluations in organizational contexts.

Quality

The degree to which a product, service, or process meets specified requirements and satisfies customer expectations.

Mary Parker Follett

An early 20th-century social worker, management consultant, and pioneer in the fields of organizational theory and organizational behavior.

Walter A. Shewhart

A pioneering figure in the field of quality control, known for developing the concepts of statistical process control and the control chart.

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