The Book Differentiates Between Customer Value and Economic Value as Business

question 3

Multiple Choice

The book differentiates between customer value and economic value as business models and the propositions they deliver. The point with differentiating between the two is to show that:

• A) economic value precedes the customer value, not the other way around
• B) economic value is a monetary value extracted from the customer value
• C) a business model can create customer value without creating economic value
• D) customer value is the economic value of the customer to the company
• E) customer value is the company's aggregate revenue from a customer

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Definitions:

Barriers to Entry

Factors that make it difficult for new firms to enter an industry, such as high startup costs or strict regulations.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical.

Barriers to Entry

Obstacles that prevent new competitors from easily entering an industry or area of business.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing them to compete on factors other than price.