Which of the following is true about competition and customer value? (Check all that apply.)

Question

Multiple select question.

A focus on a major competitor is always the best way to create customer value.

A firm that creates customer value that is superior to its competition is likely to retain customers.

A firm offering better values than its competition is likely to acquire new customers.

The best way to generate customer value is to not pay attention to the competition.

Answer 1

The following statements are true about competition and customer value:

• A firm that creates customer value that is superior to its competition is likely to retain customers.

• A firm offering better values than its competition is likely to acquire new customers.

The other statements are not necessarily true:

• A focus on a major competitor is not always the best way to create customer value; understanding customer needs and preferences can be more important.

• The best way to generate customer value is generally not to ignore competition; being aware of competitors can help a firm position itself effectively in the market.