Sandra, a buyer for a small construction company, is looking to purchase a tractor from Komatsu or Caterpillar. Sandra visits both showrooms and speaks with the sales people to hear their offers. She is looking for a reliable, durable tractor for residential construction work. She evaluates both tractors and decides on the Caterpillar. She chose it for not only its perceived durability and performance reliability, but also for the differences in the added-on services such as training, delivery, and maintenance. She also places higher value on the Caterpillar reputation and long company history. Even though the Caterpillar costs $1500 more than the Komatsu, Sandra agrees that the perceived values are worth the additional cost.

Caterpillar has done a good job with which of the following?

a) caterpillar reduced its perceived costs enough to undercuts its competitors
b) caterpillar communicated the price of its products well but not its value added traits
c) caterpillar increased the value-added perceived benefits to meet and exceed customers expectations