1. Proctor and Gamble test marketed a new version of tide detergent with softener. However, after a year of disappointing sales, it is pulled from the market. Market research revealed that original Tide users complained about its lack of cleaning power. Although they like the new perfume of the detergent, they did not intend to buy it. Softener users were not satisfied with its softening power either. They claimed that for the softness they want they need to use fabric softener after the wash. The relatively higher price detergent was not justifiable. This case represents which of the following:

a. There is little interest until a threshold is crossed.

b. More of the feature will add value up to a point, and beyond that more of the feature will detract from enjoyment.

c. Any amount of the feature is bad.

d. A little of the feature is right, more only takes away value.

e. None of the above.

2. How managers can understand customer response functions?

a. Talk to customers about how they use products, visit them at work, at home.

b. Use scanner data revealing what customers spend their money on.

c. Review industry and popular press for editorial articles, news, advertisements about product benefits, features and applications.

d. All of the above.

e. Only A and B

3. Which of the following statements is FALSE regarding customer satisfaction?

a. Adding more of a desired feature will always add increased value to the customer.

b. Customer satisfaction is derived by giving customers desired benefits.

c. Customers tend to become satisfied when they get more than they expect.

d. All of the statements are true.