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

Question

Multiple select question.

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.

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

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

Answer 1

Based on the principles of competition and customer value, the following statements are true:

1. A firm that creates customer value that is superior to its competition is likely to retain customers.
2. A firm offering better values than its competition is likely to acquire new customers.

The other two statements are generally not true:

• A focus on a major competitor is always the best way to create customer value. (This is not necessarily true because focusing only on one competitor may limit innovation and customer-centric thinking.)
• The best way to generate customer value is to not pay attention to the competition. (Ignoring competition can lead to a lack of understanding of market needs and trends, which can hinder value creation.)

So, the correct selections are the first two statements.