1. Which of these describes a marketing and sales activity contributing value in the personal care industry?
a. The Dove campaign for real beauty, which revealed results about women's assumptions about beauty, sparked increased sales of the company's products within months of the campaign's launch.
b. Crest launched Crest Complete mouthwash developed by their team with new ingredients designed not only to clean mouths but to protect teeth in between brushings from tartar build up.
c. The cosmetics company Aveda adopts a strategy of environmental sustainability in its formulation of cosmetic products.
d. Avon utilizes its direct seller, home party approach to empower sales people in every city and neighborhood to share its products with friends and family.
2. The price of a product or service is typically less than the customer's perceived value for the product because:
a. companies operate as monopolies and can set the price at the minimum to meet the consumer's perception of value.
b. prices are set based on a random amount above the cost of producing the product.
c. it is impossible to offer products to each customer at the exact price he or she values it at because customer definitions of value will vary.
d. government regulations limit the top price that industries can charge in a given industry for their products and services.
3. Efficiency is a measure of the quantity of inputs required to produce a given output. It can be measured by:
a. product price.
b. employee productivity and capital productivity.
c. overall profitability.
d. customer satisfaction.