Introduction to Consumer Value Morris B. Holbrook Jooyeon Ha

1. Introduction to Consumer Value Morris B. Holbrook Jooyeon Ha

2. Definition of Consumer Value • The exchange of interest as a transaction between two parties in which each party gives up something of value in return for something of greater value (Kotler, 1991). • Consumer value is an interactive relativistic preference experience (Holbrook, 1998).

3. The nature of consumer value • Consumer value involves interaction between some subject and some object. • Consumer value is comparative, personal, and situational. • Consumer value is preferential. • Consumer value is an experience.

4. Types of Consumer Value • Extrinsic vs. Intrinsic 1. Extrinsic value: Consumption is prized for its functional and utilitarian instrumentality in serving as a means to accomplishing some further purpose, aim, or objective. ex) Tools 2. Intrinsic value: Consumption experience is appreciated as an end in itself for its own sake. ex) Listening to classic music

5. Types of Consumer Value (cont.) • Self-oriented vs. Other-oriented 1. Self-oriented: Consumers prize some aspect of consumption selfishly or prudently for their own sake. ex) Personal computer 2. Other-oriented: Consumption experience or the product on which it depends is valued for their sake. ex) Luxurious car

6. Types of Consumer Value (cont.) • Active vs. Reactive 1. Active value: Things done by a consumer to or with a products as part of some consumption experience. ex) Driving a car or solving a crossword puzzle 2. Reactive value: Things done by a product to or with a consumer as part of some consumption experience. ex) Watching movie

7. A typology of Consumer Value

8. efficiency • Extrinsic value that results from the active use of a product or consumption experience as a means to achieve self-oriented purpose (Bond, 1983). • Ratio of Outputs to Inputs (O/I ratio) • Convenience Time-related value

9. excellence • Reactive appreciations of object’s or experience’s potential ability to serve as an extrinsic means to personal self-oriented end. • Product or service quality • Customer satisfaction Comparison of performance with expectations

10. status • Active manipulation of one’s consumption behavior as an extrinsic means toward the other-oriented end of achieving a favorable response from someone else. • Success • Impression Management * Q) How does this dimension related with concept “products as a symbol”? http://www.youtube.com/watch?v=jg39m6e55uY&feature=related

11. esteem • Consumption experience in reactive way as a potential extrinsic means to enhancing other-oriented public image. Ex) enjoying ownership of expensive art objects or other collectibles * • Q)How can you differentiate ESTEEM from STATUS in consumer value?

12. play • Self-oriented, active, and intrinsic nature associated with having fun. • Ex) Leisure vs. Work * • Q) How can marketers segment their target markets with this concept? • http://www.youtube.com/watch?v=26fzw6Eslvs • http://www.youtube.com/watch?v=mbyii8IypQo

13. aesthetics • An appreciation of consumption experience valued intrinsically as a self-oriented and reactive end in itself. Ex) Fashion, Fine art * • Q) Do marketers need to emphasize “aesthetics” for even products with utilitarian purposes ? • http://www.youtube.com/watch?v=b083L1HDotw

14. ethics • The intrinsic, active and other-oriented pursuit of ethics involves doing something for the sake of others. • Virtue, Justice, Morality http://www.youtube.com/watch?v=CV0FnaEnT6o&feature=related

15. spirituality • Reactive. • Intrinsically motivated acceptance, adoption, admiration of an Other. • Role of prayer, practice of meditation