Exam 4: The Customer Experience and Value Creation

Which of the following refers to using collective intelligence to solve specific problems or solicit ideas-often as part of a competition or for a reward?

NaturalBeauty Inc.is a firm that manufactures a range of herbal cosmetic products under the brand name NaturalBeauty.To improve its odds of developing successful disruptive innovations,the firm listens to its lead customers and identifies product benefits that are not met by the existing cosmetic products in the market.After careful analysis,the firm chooses the most lucrative opportunity and uses an "invent to order" process to develop a new product.In this example,NatureFresh Inc.is using which of the following methods?

The perceived customer value is the sum of the relative performance and the relative cost of purchase.

List and briefly discuss the fours steps in developing new customer solutions with the help of a product's lead users.

Which of the following is calculated using the formula: Labor Savings +Warranty+ Price +Callbacks?

Suppose the benchmark competitive product has a price of $300,costs $200 to install,and averages $500 in usage and maintenance costs.Your product is priced at $400,costs $100 to install,and averages $400 in usage and maintenance costs.In this situation,the economic value of your product over the benchmark competitive product is ________.

Stephen bought a new Chevrolet Suburban vehicle by putting $10,000 down and arranging to make monthly payments of $599 for six years.These payments represent the ________ of the vehicle for Stephen.

A product's life-cycle cost is the sum of the purchase price and the costs of acquiring,using,owning,maintaining,and disposing of the product.

Empathic design uses statistical surveys to collect quantitative information about customer needs.

Moreno Motors Inc.identifies that bikers are usually the first users of their newly launched products.The firm sends consultants to biker rallies to discover how bikers who use Moreno motorcycles modify them to extend their usage,as well as the desired benefits.Recent visits revealed that bikers were seeking items,such as bolt-on chrome products,horsepower performance enhancers,and improved braking systems in Moreno motorcycles.In this example,Moreno Motors Inc.is studying which of the following groups of customers?

Logic teach Inc. ,a software manufacturing firm,specializes in inventory management and billing software for supermarkets and hotels.The product has a price of $500,acquisition cost of $100,installation cost of $300,and usage and maintenance cost of $300.What is the life-cycle cost of Logic Tech's inventory management software?

Aster Technologies Inc. ,a firm that sells inventory management software,has labor savings of 20% (0.33),a product warranty of five years (0.42),a competitive price (1.0),and no customer callbacks (0.83).Calculate its customer value index (CVI).

Market-based businesses differ from product-focused businesses in that market-based businesses ________.

We can create a set of preference curves by examining how customers make trade-offs when choosing among various combinations of price and benefits,using conjoint analysis.

McCann Chemicals is a multinational pharmaceutical company with headquarters in New York.The firm invites all the research scientists at McCann Chemicals,as well as clinicians and academicians to work on open-source projects funded by the firm.McCann Chemicals has a special web site that is used to create an open-ended group of prosumers,professionals,specialists,and employees,who can share information and help each other.In this example,McCann Chemicals is using which of the following methods?

The "day-in-the-life-of-a-customer" approach may be described as "stapling yourself to an order."

The fair price for the Merrill Microwaves,manufactured by Merrill Inc. ,is considerably higher than its actual price of $140.Merrill Microwaves have a relative performance rating of 125.According to this data,Merrill Microwaves provides ________.

Amtech Inc. ,an American firm that manufactures inkjet cartridges,also provides inkjet refill services at all its stores.The firm manufactures and sells "do it yourself" kits that allows customers to do their own inkjet refills.Amtech Inc.lowers the total cost of the product by solving its customers' problem of throwing away empty cartridges,and also enables customers to save money.In this example, Amtech Inc.reduces which of the following costs for their customers?

The process of taking a closer look at the customer ordering process from the customer's viewpoint,with the objective of uncovering any potential problems or sources of frustration in the purchasing process is called ________.

Which of the following addresses emotional benefits tied to the customer's personal psychological needs?