Consumer behavior Chapter 2
_____ refers to the feelings that are experienced during consumption activities or associated with specific objects.
Affect
Describe the Consumer Value Framework (CVF), including its basic components.
Consumer Value Framework represents consumer behavior theory, illustrating factors that shape consumption-related behaviors determining the value associated with consumption. the different components are either internal or external. The internal components involve thoughts, memories, motivations, personality, lifestyle... etc. And external influences include media, your peers, culture, environment, family
Define consumer value and compare and contrast two key types of value.
Consumer value is a personal assessment of the net worth obtained from an activity. The two type of value are utilitarian and hedonic value which both solve the problem for the consumer. Utilitarian is helping the consumer just solve the problem while hedonic is the emotional experience while using the object.
Explain the concept of Customer Lifetime Value (CLV) and describe how it might be determined.
Customer Lifetime Value represents the approximate worth of a customer to a company. You would determine the amount of money that customer has spent with you cutting out the cost and multiple it over your equity.
A positioning map is used to depict graphically the positioning of competing products.
False
All customers are equally valuable to a firm.
False
Backward sloping demand refers to the fact that as price increases, quantity demanded typically decreases.
False
One conceptual difference between utilitarian value and hedonic value is that utilitarian value is an end in and of itself rather than a means to an end.
False
Purchasing a satellite radio for your car and the satellite radio service necessary to use the radio is an example of a complete product.
False
Strategies exist only at the top, corporate level in an organization.
False
The Consumer Behavior Framework (CBF) represents consumer behavior theory illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumption.
False
The most effective marketing strategies are those defined in terms of the tangible product offered.
False
The multifaceted value concept is practiced when companies operate with the understanding that products provide value in multiple ways.
False
Explain why the process of market segmentation is important for effective marketing.
Marketing segmentation is important for effective marketing in order to effectively market to specific characteristics such as age, income, geography and lifestyle.
Explain how perceptual maps are useful in understanding consumers and delivering superior value.
Perceptual maps graphically positions competing products. This help identify your competitors so you can diagnose your opportunities.
Learning, perception, memory, and attitudes are examples of elements comprising consumer psychology.
True
Marketing tactics are ways marketing management is implemented.
True
Product differentiation is a marketplace condition in which consumers do not view all competing products as identical to one anther.
True
Products are multifaceted and can provide value in many ways.
True
The core concept of consumer behavior is value.
True
The market for any product is really the sum of the demand existing in individual groups or segments of consumers.
True
The marketing mix is the combination of product, pricing, promotion, and distribution strategies used to position some product offering or brand in the marketplace.
True
Utilitarian value is derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer.
True
Value is a personal assessment of the net worth obtained from an activity.
True
_____ is a personal assessment of the net worth obtained from an activity.
Value
An example of benefits received from consumption is _____.
all of the above
Which of the following is NOT considered a marketing tactic?
all of the above are marketing tactics
Carlos tracks detailed information about customers so more customer-oriented decisions can be made with these decisions hopefully leading to longer-lasting relationships with customers. Carlos is involved in _____.
customer relationship management
Value equals what you give minus what you get.
false
Which of the following on a perceptual map represents the combination of product characteristics that provide the most value to an individual consumer or market segment?
ideal point
Consumers do not view all soft drinks as identical to one another. Some prefer Coca-Cola, while others will only drink Pepsi-Cola. Still others will not drink either cola and drink only non-caffeinated soft drinks. This marketplace condition in which consumers do not view all competing products as identical to one another is called _____.
product differentiation
Which of the following is an external influence on consumer value?
reference groups
When a consumer realizes high value from an exchange with a company, _____ improves.
relationship quality
The business practice wherein companies operate with the understanding that products provide value in multiple ways is called the _____.
total value concept