Value Creation

Raindrop introduces a line of see-through umbrellas that glow in the dark.

During the rainy season, people look to buy raincoats and umbrellas. Raindrop, an apparels manufacturer, caters to this need. Which of the following actions would represent the conversion of this need into a want?

Value Creation

Occurs when consumers use products or services that satisfy their needs and wants

Communicate that Value

Once a company has created value, the next thing that the company must do is

False

True or False: Have you ever been to a new restaurant and found that its food, service, and prices were excellent? Is that restaurant still in business? If not, the restaurant likely failed to create value for its target market.

False

True or False: Millions of people throughout the world buy and enjoy Diet Coke every day. Coca-Cola's ability to deliver the physical product to countless customers globally demonstrates its ability to capture value through effective exchange of the product.

True

True or False: When marketers successfully match products to consumers' needs and wants, consumers are more likely to purchase and use those products—and that is where value is created.

Price

What is the primary way that firms capture value from customers?

Exchange

When a buyer and seller trade things of value so that each is better off as a result.

Communicating the value of a product to customers

Which of the following is the role of the promotion element in the marketing mix?

To create value, the new good, service, or idea must satisfy a perceived marketplace demand.

Which of the following is true of customer value?

It helps them provide products that fulfill customers' wants and satisfy their underlying needs.

Why should marketers distinguish between needs and wants?

Customer Value

_____ refers to the perceived benefits, both monetary and nonmonetary, that customers receive from a product.