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