The U.S. Postal Service (USPS) argues that its express service is comparable to what is offered by FedEx and that its prices are much lower. Yet, FedEx dominates with more than a 45 percent share of the express-delivery market. Which of the following statements describes this situation?

A. The USPS is perceived as offering greater customer value.
B. FedEx is perceived as offering greater customer value.
C. FedEx and the USPS offer the same customer value.
D. Customer value is not an issue in deciding which express-delivery service to use.
E. The USPS should lower its prices even further to increase market share.

ANSWER:

B. FedEx is perceived as offering greater customer value.