Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc and US-based Global Tech
Though Keiko's products are priced lower than Global's, the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech. What can Keiko do to obtain LZT's order?
Student answers will vary. Keiko can increase total customer benefit by improving economic, functional, and psychological benefits of its product, services, people, and image. It can reduce LZT's non-monetary costs by reducing the time, energy, and psychological investment. It can also further reduce its product's monetary cost.
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