Joss Is a Marketing Consultant

question 157

Multiple Choice

Joss is a marketing consultant.Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report.Iris is willing to pay $500 for the service while Daphne is willing to pay $800.Suppose that the opportunity cost of Joss's time is $1,200.Assume that Iris and Daphne do not know each other.Which of the following statements is true?

• A)Joss should charge each customer $600; that way he will earn his opportunity cost and it will be fair to both Iris and Daphne.
• B)Joss should charge Iris $500 and Daphne no more than $700; that way he earns his opportunity cost and there is no loss in economic surplus.
• C)Joss should charge Iris $500 and Daphne $800; that way economic surplus is maximized.
• D)Joss should charge Iris $500 but charging Daphne $800 is unfair because it allows Joss to earn more than his opportunity cost.

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Definitions:

Customer Experiences

The perceptions and responses of customers resulting from the use or anticipated use of a company's products or services.

Repeat-Purchase Intention

Repeat-Purchase Intention is the likelihood that a customer will buy a product or service again, often influenced by satisfaction, brand loyalty, and product quality.

Customer Satisfaction

A measure of how products or services meet or surpass the customer's expectations, often used as a key performance indicator within business.

Brand Personality

The set of human characteristics attributed to a brand, affecting how consumers perceive and relate to it.