Question

in the context of customer relationship management, which of the following statements is true of value?
a. setting low expectations about a product can help marketers increase its perceived value.
b. loyal customers would rather switch to lower - cost competitors than pay more for a product.
c. low cost does not always mean high value.
d. highly priced products are always thought to have high value.

Explanation:

Value in customer relationship management is a balance of benefits and costs. Low - cost products may lack quality or features (low benefits), so low cost ≠ high value.

• Option A: Setting low expectations may reduce perceived value as customers expect less.
• Option B: Loyal customers often stay due to perceived value (not just cost), so they won't easily switch.
• Option D: Highly - priced products may have low value if benefits don't match the price (e.g., overpriced, low - quality items).

Answer:

C. Low cost does not always mean high value.