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Customer value is best described as which ratio?
ATotal revenue to the total cost of producing the good
BBenefits to the sacrifice needed to obtain those benefits
CAdvertising spend to the number of units finally sold
DMarket share to the market share held by a competitor
Answer & Solution
Correct answer: B. Benefits to the sacrifice needed to obtain those benefits
1. Customer value compares the benefits a customer gets with the sacrifice needed to get them.
2. The customer, not the seller, decides how large both the benefits and the sacrifice are.
3. Because the customer judges it, value is not simply a cost or revenue figure inside the firm.
4. Revenue to cost, spend to units and share to share are internal measures, not customer value.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.1 The Marketing Concept_
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