Crafting Customer Value Proposition Quiz
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Questions and Answers

What does functional value or utilitarian value reflect?

  • Social benefits and costs such as status and reputation
  • Indirect benefits and costs such as emotional satisfaction
  • Long-term benefits and costs such as brand loyalty
  • Direct benefits and costs such as performance, reliability, and ease of use (correct)
  • In what ways can an offering create psychological value?

  • By neglecting emotional appeal in favor of practicality
  • By extending beyond functional benefits to create emotional benefits for target customers (correct)
  • By focusing solely on cost-effectiveness and efficiency
  • By emphasizing social status and reputation over functionality
  • What are some examples of functional value mentioned in the text?

  • Social recognition, status, and reputation
  • Durability, compatibility, and form (correct)
  • Emotional satisfaction, happiness, and joy
  • Luxury, exclusivity, and prestige
  • What does the text suggest about how customers make choices?

    <p>Customers tend to maximize value within the bounds of search costs and limited knowledge</p> Signup and view all the answers

    How does psychological value differ from functional value?

    <p>Psychological value creates emotional benefits while functional value reflects direct benefits and costs</p> Signup and view all the answers

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