Buad Final Study 307 Study Guide Questions and Answers.

1. Customer value ○ Customer Value = Benefits Received/Sacrifices Made 2. Considerations in determining suitability for products and services for sale online ○ THESE WILL BE EXPLAINED IN THE CHART GIVEN DURING THE EXAM ○ Value-to-bulk ratio, absolute margin, ability of consumer to evaluate quality and fit through online description, convenience to the customer and willingness to pay for this convenience, customer sensitivity to delayed delivery, extent of customization needed, geographic dispersal of customers, need for assortment of variations 3. Relative costs in selling online, in retail settings, and combined mode ○ Online retailers have higher costs than conventional retailers ○ Intermediaries add value through specialization and consolidation of tasks, eliminating gives higher costs ○ Customers