MGMT 522 week3 quiz

1. (TCOs C, H) Describe customer perceived value, total customer benefit, and total customer cost. How do the total customer benefit and the total customer cost affect the consumer’s perception? Explain. (Points: 5) Total customer benefit (TCB) is the value the customer expects to see from the product, services and assets. Total customer cost (TCC) is the bundled expected cost to achieved the benefit. Customer perceived value (CPV) is the customer’s evaluation on difference between TCC and TCB compared to other alternatives. Basically, it is an evaluation to determine if the benefits are worth the cost. TCC and TCB greatly affect CPV because it will be the primary driver if the customer will see if the product or service as worth the cost. TCB must be perceived as equal or greater to the cost. |
2. (TCOs C, H) What are some of the ways that a business can attract and retain customers? (Points : 5) Launch marketing campaigns that attract a niche market. Kolter references a bank wanted to improve the drive through banking experience for the other people in the car. They began provide lollipops to children and doggie bisquits to dogs to improve the overall experience. Another example is providing a service that separates yourself from your competition. My bank just recently released an cell phone application that allows me to take a picture of checks and deposits them so I don’t have to go bank. This is a huge time saver and I would think twice of leaving based off of this benefit alone. |
3. (TCOs C, H) What are the five stages in the buying decision process? Briefly describe each. (Points : 5) Problem Recognition: The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli. With an internal stimulus, one of the person’s normal needs—hunger, thirst, sex—rises to a threshold level and becomes a drive. A need can also be aroused by an external stimulus. A person may