online assignment

463 Marketing Management: Chapter 4

· How would the company’s customer value change if it raised its repair time rating from 5 to 7 (other things remain the same)?

Step 1: calculation of difference score (business rating – A/B/C)

	A	B	C
Repair time	7-7=0	7-6=1	7-5=2

Step 2: Assignment of importance scores

	A	B	C	Advantage
Repair time	0	0	60	60/3 = 20

Thus: customer value = 100+ 20+10= 130

· What would be the value impact of improving the ease-of-use product benefit from 4 to 6 (other things remain the same)? Would this improve perceived customer value more than addressing the repair time benefit problem in the previous question?

Step 1: Ease of use: difference score (business rating – A/B/C)

	A	B	C
Repair time	6-6=0	6-7=-1	6-6=0

Assignment of importance scores

	A	B	C	Advantage
Repair time	0	0	0	0/3 = 0

Thus: customer value = 100+ 27+20= 147

Setup
Performance Factor	Low	Mid	High
Taste Quality	Poor	Avg.	Good
Service Quality	Poor	Avg.	Good
Hamburger Price	25% Lower	Avg.	25% Higher

Rank these options from 1 (most preferred) to 9 (least preferred).

Profile A:

Taste Quality	Poor
Service Quality	Poor
Hamburger Price	25% Lower

Profile B:

Taste Quality	Avg.
Service Quality	Poor
Hamburger Price	Avg.

Profile C:

Taste Quality	Good
Service Quality	Poor
Hamburger Price	25% Higher

Profile D:

Taste Quality	Poor
Service Quality	Avg.
Hamburger Price	25% Higher

Profile E:

Taste Quality	Avg.
Service Quality	Avg.
Hamburger Price	25% Lower

Profile F:

Taste Quality	Good
Service Quality	Avg.
Hamburger Price	Avg.

Profile G:

Taste Quality	Poor
Service Quality	Good
Hamburger Price	Avg.

Profile H

Taste Quality	Avg.
Service Quality	Good
Hamburger Price	25% Higher

Profile I:

Taste Quality	Avg.
Service Quality	Good
Hamburger Price	25% Higher

Stop after you are done with ranking.

Answer the following questions:

· Which aspect of price or performance is most important and which is least important?

· Compare the customer values of the following two options:

· A hamburger that has average taste quality, average service quality, and average price.

· A hamburger that has poor taste quality, high service quality and low price.