1. What is the primary measure of customer value?
A. The price customers pay for a product or service
B. The level of customer satisfaction experienced after consumption✓
C. The company's marketing spending on value-based advertising
D. The stock price of a company
2. Which of the following is NOT a component of customer value?
A. Customer experience
B. Product performance
C. Employee turnover✓
D. Price based on performance or relative price
3. What does a customer value map help businesses evaluate?
A. The relative performance of a brand compared to competitors✓
B. The company's internal cost structures
C. The employee satisfaction index
D. The effectiveness of social media campaigns
4. Which of the following best describes economic value?
A. The difference between price and production costs
B. The fair price minus the selling price of an offering✓
C. The amount of time spent purchasing a product
D. The total price minus the cost of selling
5. How is relative customer value calculated?
A. Relative price minus relative performance
B. Relative performance minus relative price✓
C. Absolute performance divided by absolute price
D. Absolute performance minus price
6. What factor contributes most significantly to ownership value?
A. Product availability
B. Total cost of ownership✓
C. Product design
D. Employee engagement
7. A fair-price line in a value map represents:
A. The minimum price required to break even
B. The relative price to relative performance relationship for the market✓
C. The optimal inventory level for a firm
D. The price sensitivity of competitors
8. Which of the following is NOT a source of voice of the customer (VOC)?
A. Social media reviews
B. Employee complaints✓
C. Customer surveys
D. Focus groups
9. In a Relative Value Map, what does negative value imply?
A. Relative performance = Relative price
B. Relative performance > Relative Price
C. Relative performance < Relative Price✓
D. Relative performance and Relative Price cannot be compared
10. What is customer needs importance?
A. The extent to which managers believe a need contributes to profitability
B. The number of times customers complain about a need
C. The extent to which satisfying a need will increase overall customer satisfaction✓
D. The extent to which satisfying a need will lower quality
11. What does a relative value map compare?
A. Customer perception of brand awareness
B. The relative price and performance of competing brands✓
C. Advertising spend versus customer loyalty
D. Employee satisfaction levels across departments
12. Brands can measure economic value by comparing themselves to:
A. The price line
B. The fair price line✓
C. Market average line
D. The best brand line
13. Why is measuring ownership value important?
A. It determines a product's production costs
B. It ranks competitors' promotional campaigns
C. It helps assess total customer cost beyond purchase price✓
D. It measures product shelf-life
14. What is the purpose of lifetime value of the cost of ownership?
A. To measure how much a product or service costs over the total ownership life✓
B. To measure how a customer's life can be valued
C. To determine supplier efficiency
D. To evaluate inventory turnover rates
15. In Figure 3.19, which one is NOT a component of lifetime value of an automobile?
A. Fuel
B. Advertising✓
C. Financing
D. Insurance
16. As an input to obtain a company's overall performance on a customer need, the analyst:
A. Multiplies the importance weight of the need with the performance score on that need✓
B. Divides the satisfaction score of the need with the dissatisfaction score of the need
C. Multiplies the price of the need with the cost of fulfilling the need
D. Divides the market share of the brand with its total share
17. To calculate the relative performance of a brand in a market, the analyst should:
A. Divide the brand's relative performance with the average performance of all brands in the market✓
B. Divide each brand's performance with the price and add them up
C. Divide the relative price of a brand with its customer satisfaction score
D. Subtract the brand's performance from the top-rated brand in the market
18. Which of the following is a key benefit of a positive relative value for a brand?
A. Higher employee retention
B. Increased customer attraction and retention✓
C. Reduced advertising expenses
D. Guaranteed market leadership
19. Economic value is best measured by:
A. Analyzing customer satisfaction surveys
B. Comparing the fair price to the selling price using regression analysis✓
C. Reviewing the company's annual reports
D. Calculating the net promoter score
20. What differentiates relative value from economic value?
A. Relative value measures brand reputation while economic value measures profit margins
B. Relative value compares price and performance among brands while economic value uses regression to estimate a dollar-based fair price✓
C. Relative value is used only in B2B markets while economic value applies only to consumer markets
D. Relative value is a qualitative measure while economic value is based on employee satisfaction scores
21. What does a brand with a performance score above the fair-price line on a value map indicate?
A. The brand is priced too low relative to its performance
B. The brand delivers more value than its price suggests
C. The brand is overpriced relative to its performance✓
D. The brand has the highest market share
22. Which industry typically uses ownership value analysis most effectively?
A. Fast food
B. Industrial and capital equipment markets✓
C. Fashion and apparel
D. Social media platforms
23. Which formula correctly expresses customer value?
A. Customer Value = Product Price / Market Share
B. Customer Value = Customer Satisfaction - Price Paid
C. Customer Value = Product Performance / Price✓
D. Customer Value = Total Revenue / Number of Customers
24. What does a brand located below the fair-price line on a relative value map suggest?
A. The brand offers lower customer satisfaction
B. The brand's performance is lower than its price implies
C. The brand offers more performance relative to its price — positive relative value✓
D. The brand has a higher profit margin than competitors
25. When there are fewer than ten competing brands available for analysis, which value measure is most practical?
A. Economic value using regression analysis
B. Relative value using a customer value map✓
C. Lifetime value of cost of ownership
D. Net Promoter Score comparison
26. The total cost of ownership framework typically includes which of the following?
A. Purchase price, operating costs, maintenance, financing, and disposal costs✓
B. Only the initial purchase price and warranty costs
C. Advertising expenses and distribution costs
D. Only annual subscription fees and delivery charges
27. A brand's relative price is calculated by:
A. Multiplying the brand's price by market share
B. Dividing the brand's price by the average market price✓
C. Subtracting competitor prices from the brand's price
D. Adding the brand's promotion cost to its retail price
28. In the context of customer value, what does 'fair value' mean?
A. The brand offers the lowest price in the market
B. The brand's relative performance equals its relative price — you get what you pay for✓
C. The brand has the highest customer satisfaction score
D. The brand's marketing spend equals its revenue
29. Which of the following best explains why ownership value matters to customers?
A. It shows them how quickly a product depreciates in resale value
B. It reveals the true long-term cost of a purchase beyond the initial sticker price✓
C. It measures the product's environmental impact over its lifetime
D. It determines the product's brand equity score
30. When a company improves its relative performance without changing its relative price, the likely result is:
A. A decrease in market share due to brand confusion
B. A move toward positive relative value, improving competitive position✓
C. An increase in production costs with no customer benefit
D. Reduced employee engagement due to increased workload