10 Questions
What is the primary purpose of using a value map according to the text?
To explore the way customer value and price/benefit tradeoff work in real markets for a given segment.
What does the horizontal axis of the value map quantify according to the text?
The benefits as perceived by the customer.
What is the significance of competitors being aligned on the value equivalence line (VEL) according to the text?
It means that customers have a clear and logical choice at any desired price or benefit level.
What is the position of a competitor who is gaining market share?
They will be positioned below the VEL in a "value-advantaged" position.
What is the significance of a competitor being positioned below the VEL according to the text?
It means they are offering higher benefits at a lower price compared to competitors.
Based on the information provided, which of the following is the most likely reason why Alpha Computer Company's new line of minicomputers experienced unexpectedly poor market acceptance?
Alpha's marketing strategy was ineffective in communicating the value proposition of its minicomputers.
According to the value map described in the text, which of the following is true about Keycomp's positioning relative to Alpha Computer Company?
Keycomp had both a higher price and worse technological features than Alpha.
According to the value map described in the text, which of the following is true about the positioning of Alpha Computer Company's minicomputers relative to its competitors?
Alpha's minicomputers were positioned below the VEL (Value Equivalence Line) and offered greater customer value than its competitors.
According to the value map described in the text, which of the following is true about Ace Computer's positioning relative to Alpha Computer Company?
Ace had higher processor speed and secondary access speed, and a higher price than Alpha.
The text mentions that 'advanced market research techniques (conjoint analysis, discrete choice analysis, and multi-staged conjoint analysis, for example) allow an accurate quantification of the perceived benefit dimension and its tradeoff against price.' Which of the following best describes the purpose of these advanced market research techniques in the context of the value map?
To accurately measure the relative importance of price and benefits in a customer's purchasing decision.
Learn about the value map tool used in marketing and strategic assessments to understand how customers are distributed within a given segment. Explore the relationship between customer value, benefits, and price in real markets through a value map analysis.
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