Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

What term is used to describe what a customer gains from a product or service feature?

1. Value

2. Advantage

3. Benefit

4. Utility

The correct answer is: Benefit

The term "benefit" specifically refers to what a customer gains from a product or service feature. In marketing and business contexts, benefits highlight how a particular feature meets a customer's needs or solves a problem for them. For example, if a smartphone has a long battery life, the benefit would be that customers can use their phone for extended periods without needing to recharge, which enhances their experience and satisfaction. In contrast, while value refers to the overall worth or importance of a product to the customer, it encompasses more than just the advantages or benefits. Advantage can mean a favorable condition or circumstance that is not exclusively related to customer satisfaction. Utility generally refers to the usefulness or functionality of a product, focusing on its capability to fulfill needs rather than the specific positive outcomes for the customer. Therefore, "benefit" is the most precise term that directly addresses the gains realized by the customer through a product feature.