DECADECA Travel and Tourism Practice Exam

How can a company ensure it is delivering customer-delivered value?

1. By enhancing product price

2. By balancing total customer value with total customer cost

3. By increasing advertising spend

4. By decreasing product quality

The correct answer is: By balancing total customer value with total customer cost

To ensure a company is delivering customer-delivered value, it is essential to balance total customer value with total customer cost. This means considering both the benefits that customers perceive they are receiving from a product or service (total customer value) and the costs they incur to obtain it (total customer cost). By striking this balance, the company can position its offerings in a way that maximizes customer satisfaction and loyalty. When customers perceive that the value they receive far outweighs the cost they pay, they are more likely to feel satisfied and continue to choose the company’s products or services. This approach fosters a positive relationship with customers and encourages repeat business. In contrast, enhancing product price alone does not guarantee increased customer value; it may even deter customers if perceived value does not match the cost. Increasing advertising spend might raise awareness but does not inherently improve the value offered to the customer. Decreasing product quality would negatively impact customer value, as it typically leads to dissatisfaction, regardless of price or promotion. Thus, the best strategy for delivering customer-delivered value centers around thoughtfully balancing the benefits and costs associated with a product or service.