Which of the Following Is a Characteristic of Customer Value

question 24

Multiple Choice

Which of the following is a characteristic of customer value?

• A) the establishment of a competitive advantage by creating better customer value for the same cost
• B) the improvement of costing accuracy by emphasizing the activities and tasks that must be performed
• C) the efficient performance of necessary activities and elimination of activities that do not create customer value
• D) the difference between what a customer receives and what the customer gives up when buying a product or service

---

Definitions:

Price Floor

A government-imposed minimum price charged for a commodity, intended to protect producers by ensuring prices do not fall below a certain level.

Consumer Surplus

The distinction in the total financial outlay consumers are prepared to make for a good or service and the outlay made.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded, typically sloping downward from left to right.

Willingness To Pay

The maximum amount an individual is prepared to spend to procure a good or service or to avoid something undesirable.