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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:

Brownies

A small square-shaped chocolate cake that is typically rich in chocolate flavor and often contains nuts or other additives.

Cookies

Small data files stored on a user's computer by websites, used to remember information about the user's visit.

Comparative Advantage

The ability of an individual or economy to produce goods or services at a lower opportunity cost than others.

Opportunity Cost

Giving up potential gainful opportunities from other choices by selecting a specific option.

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