5 Questions
What does functional value or utilitarian value reflect?
Direct benefits and costs such as performance, reliability, and ease of use
In what ways can an offering create psychological value?
By extending beyond functional benefits to create emotional benefits for target customers
What are some examples of functional value mentioned in the text?
Durability, compatibility, and form
What does the text suggest about how customers make choices?
Customers tend to maximize value within the bounds of search costs and limited knowledge
How does psychological value differ from functional value?
Psychological value creates emotional benefits while functional value reflects direct benefits and costs
Test your knowledge on developing a customer value proposition, creating sustainable competitive advantage, choosing a frame of reference, and identifying points of difference and parity.
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