chapter 2
what to calculate customer lifetime value ?
(cusomter lifetime value)=(net present value "sales-costs")of the stream of profits over a customers lifetime +plus the worth attributed to the equity a good customer can bring "word of mouth" (net present value )(equity) npv(sales-costs)+npv(equity)=Customer lifetime value
utilitarian example
a person buys bleach , which will be used for cleaning , thus purchasing and using and in the end cleaning which gratifies the customer , value is then provided bc the object or activity allows for something else to be good,accomplished
value
a personal assessment of the net worth obtained from an activity . (what you get -what you give )=(value)
consumer perception process ?
begins with sensing ,organizing ,reacting goes back to sensing
consumer value framework (CVF)
consumer behavior theory that illustrates factors that shape consumption -related behaviors and ultimately determine the value associated with consumption
sensation
describes a consumers immediate response to this information .
social enviroment
elements that specifically deal with the way other people influence consumer decision making and value .For example , the people and groups who help shape a consumers everday experiences. "group influences "
value co-creation example
for example 24 hour fitness , serves customers by making workout facilities available any time of the day . however the customer can only realize value from the offer by paying for this services and applying diligence ,skills,and effort to workout regime .
cognitive
for example referres to the thinking or mental process , that goes on when we store things in our brain, for example a child listens to there parents who refers to smoking as nasty there for smoking becomes associated with nasty .
example of internal influences
has to do with the psychology of the consumer involves both cognitive and affective process .
external influences
include the social and cultural aspects of life as a consumer ,for example they directly impact the value of activites , for example breakfast is different to others around the world . also includes social influences
product differentiation
is a market place condition in which consumers do not view all competing products as identical to one another .
cognitive organization
is the process by which the human brain assembles sensory evidence into something recognizable (organizing )
exposure
is the process of bringing some stimulus within proximity of a consumer so that the consumer can sense it with one of the 5 human sences. ( sight ,smell,taste,touch,sound)
what is value CO- creation ?
is the realization that a consumer is necessary and must play a part in order to produce value .
market segmentation
is the separation of a market into groups based on the different demand curves associated with each group . for example ,as the price for a tablet computer decreases ,the quatity sold increases.in other words there is a negative relationship between price and quality sold.
what is learning ?
its reffered to a change in behavior resulting from the interaction between a person and a stimulus .
implicit memory
memory for things that a person did not try to remmeber , implicit memory creates preattentive effects which means learning that is developed in the absence of attention , in other words implicit memory is stronger do to how distracting something might become for example an ad.
explict memory
memory that develops when a person is exposed to , attends and tries to remember information
conditioned stimulus
object or event that does not cause the desired responses naturally but that can be conditioned to do so by pairing with an unconditional stimulus
assilmilation
occurs when a stimulus has characteristics such that individuals readily recognize it as an example of a specific category .
accommodation
occurs when a stimulus shares some, but not all , of the characteristics that allow it to fit neatly in an exciting category ,at this point the consumer will begin processing which allows exceptions to rules about a category
absolute threshold
of perception ,the minimum strength needed for a consumer to perceive a stimulus , this type of learning is unintentional because the stimuli falls under the absolute threshold
selective distortion
process by which consumers interpret information in ways that are biased by their previously held beliefs
selective attention
process of paying attention to only certain stimuli
selective exposure
process of screening out certain stimuli and purposely exposing oneself to other stimuli
affectives
referes to the feelings that are experienced during consumption activities or associated with specific object , for example if the child continuous to get negative information over smoking the feeling of disgust will occur
what is consumer perception ?
refers to a customers awareness and interpretation of reality . thus perception serves as a foundation upon which a consumers learning takes place .
customer lifetime value CLV
represents the approximate worth of a customer to a company in economic terms . CLV is the overall longterm profitability of an individual consumer .
contrast
state that results when a stimulus does not share enough in common with existing categories to allow categorization
unconditional stimulus
stimulus with which a behavioral response is already associated
consumer value framework (CRM)
systematic information management system that collects ,maintains, and reports detailed information about customers to enable a more customer oriented managerial appoarach
behaviorist apporach to learning
the theory of learning that focuses on changes in behavior due to association without great concern for the cognitive mechanics of the learning process
subliminal processing
the way that the human brain deals with very low strength stimuli so low that one cannot notice anything .
internal influences
things that go on inside of the mind and heart of the consumer ,also includes situational influences
situational influence
things unique to a time or place that can affect consumer decision making and the value received from consumption . for example ,the presence of music in an environment may shape the consumers behavior and buying patterns
hedonic value
value derived from the immediate gratification that comes from some activity or comes from experiencing some activity
utilitarian value
value desired from a product that helps the consumer with some task .
hedonic example
value is provided entirely by the actual experience and emotions associated with consumption , value is an end , its value is also very emotional and subjective in nature , consumer does something to obtain this value
how do learning and perception work together ?
well value involves learning and consumer perception plays a key role in learning because consumers change behavior based on what they perceive