TestPrepWizard.com’s marketing department has produced a report that c

QUESTION

TestPrepWizard.com’s marketing department has produced a report that claims that even though virtually all customers believe that TestPrepWizard.com’s products and services have high value,

a significant percentage of TestPrepWizard.com’s customers are not satisfied. A manager at TestPrepWizard.com takes issue with this claim, stating that this is impossible. Is the manager correct? Why or why not?
A) Yes, because by definition when customer-perceived value is high, customers are satisfied.
B) Yes, because successful companies deliver both high customer-perceived value and customer satisfaction.
C) No, because customer satisfaction depends on customer expectations as well as product performance.
D) No, because customers are not willing to sacrifice quality for lower prices.
E) No, because value is different from customer-perceived value, and marketers can increase customers’ perceived value without changing the product’s actual performance.

ANSWER

Answer: C
Explanation: C) Value and satisfaction are different things. Customers can be dissatisfied even when they believe they are getting value if their expectations are high enough. So Choice C has it right. Choice A repeats the manager’s mistake. Choice B is true but irrelevant to the question at hand. Choice D is false, at least some of the time, and it’s also irrelevant. Choice E gets at the difference between value and customer-perceived value, but that still doesn’t explain why satisfaction can be low when perceived value is high. To explain that, you need to bring in customer expectations.