Name and discuss the six sources of economic benefit and value creation
What will be an ideal response?
(1 ) Price Paid — The price or payment terms can destroy customer value. A product may offer an excellent customer solution, but its price can be too high relative to the benefits provided.
(2 ) Acquisition Costs — Acquisition costs are part of the total life-cycle cost. These are costs associated with securing the product, not actual product costs.
(3 ) Usage Costs — Costs associated with the actual usage of the product. A product that will eliminate or significantly reduce costs that customers presently incur has a substantial economic value.
(4 ) Ownership Costs — Products with high ownership costs are typically expensive items that buyers finance and insure. The interest and premiums account for the high ownership costs.
(5 ) Maintenance Costs — Products with good performance records may cost more to buy but will have a lower overall cost.
(6 ) Disposal Costs — By reducing or eliminating a customer's disposal costs, a business creates economic value in the product.
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Which of the following situations could lead to a service breakdown?
A. A manager prepares a report ready for distribution, on time. B. Room service food was delivered at the appropriate time and temperature. C. A hotel room is not ready past the stated check-in time. D. The delivery of needed parts, ordered by a manufacturer, arrives on time.
A plaintiff in a negligence suit must prove that the defendant's breach of duty was the remote cause of the plaintiff's injuries.
Answer the following statement true (T) or false (F)
Asking for a claim is the same as asking for a settlement to a problem
Indicate whether the statement is true or false.
To develop a strategy for reaching corporate objectives, management must first try to
A. research the market. B. develop scenarios. C. select a viable market segment. D. define the firm's mission. E. quantify them.