Do Consumers Use Price as an Indicator of Value

question 238

Essay

do consumers use price as an indicator of value?

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Definitions:

Delivery Gap

A discrepancy between a company's service delivery standards and the actual service delivered, often leading to customer dissatisfaction.

Positive Word of Mouth

The spread of favorable information and recommendations about a product, service, or brand through conversations among consumers.

Empowerment Gap

The difference between what customers expect in terms of control and influence over a service, and what they perceive they actually receive.

Important Customer

A customer considered valuable to a business due to factors like frequent purchases, high order value, or strategic significance, warranting special attention or service.