1 / 15

Chapter 2 Value and the Consumer Behavior Value Framework

Chapter 2 Value and the Consumer Behavior Value Framework. Learning Outcomes. Describe the consumer value framework, including its basic components Define consumer value and compare and contrast two key types of value

taini
Download Presentation

Chapter 2 Value and the Consumer Behavior Value Framework

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 2 Value and the Consumer Behavior Value Framework

  2. Learning Outcomes • Describe the consumer value framework, including its basic components • Define consumer value and compare and contrast two key types of value • Apply the concepts of marketing strategy and marketing tactics to describe the way firms go about creating value for consumers

  3. Learning Outcomes • Explain the way market characteristics like market segmentation and product differentiation affect marketing strategy • Analyze consumer markets using elementary perceptual maps • Justify consumers’ lifetime value as an effective focus for long-term business success

  4. The Consumer Value Framework (CVF) • Represents consumer behavior theory illustrating factors that shape consumption-related behaviors • Ultimately determine the value associated with consumption

  5. Value and the CVF Components • Relationship quality • Customer relationship management • Internal influences • The psychology of the consumer • Cognition • Affect • The personality of the consumer • Individual differences

  6. Value and the CVF Components • External influences • Social environment • Situational influences

  7. Value • Personal assessment of the net worth obtained from an activity • Utilitarian value - Derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer • Hedonic value - The immediate gratification that comes from experiencing some activity

  8. Marketing Strategy • Marketing Myopia - a condition in which a company views itself competing in a product business rather than in a value, or benefits producing, business • Marketing Tactics - Involve price, promotion, product, and distribution decisions

  9. Total Value Concept • Augmented product - The original product plus the extra things needed to increase the value from consumption • Every product’s value is made up of the basic benefits, plus the augmented product, plus the “feel” benefits

  10. Value Is Co-Created • Value co-creation is the realization that a consumer is necessary and must pay a part in order to produce value

  11. Market Segmentation and Product Differentiation • Market segmentation - The separation of a market into groups based on different demand curves associated with each group • Product differentiation - A marketplace condition in which consumers do not view all competing products as identical to one another

  12. A Perceptual Map • Used to depict graphically the positioning of competing products • A blue ocean strategy seeks to position a firm far away from competitors • When successful, the firm creates an industry of its own and at least for a time, isolates itself from competitors

  13. Customer Lifetime Value (CLV) • Represents the approximate worth of a customer to a company in economic terms CLV = npv(sales-costs) + npv(equity)

More Related