Chapter 2: Value and the Consumer Behavior Value Framework Flashcards
Consumer behavior theory that illustrates factors that shape consumption-related behaviors and ultimately determine the value associated with consumption
Consumer Value Framework (CVF)
Systematic management information system that collects, maintains, and reports detailed information about customers to enable a more customer-oriented managerial approach
Customer Relationship Management (CRM)
Degree of connectedness between a consumer and a retailer, brand, or service provider
Relationship Quality
Things that go inside of the mind and heart of the consumer
Internal Influences
Thinking or mental processes that go on as we process and store things that can become knowledge
Cognition
Feelings associated with objects or experienced during events
Affect
Characteristic traits or individuals, including personality and lifestyle
Individual Differences
Social and cultural aspects of life as a consumer
External Influences
Elements that specifically deal with the way other people influence consumer decision making and value
Social Environment
Things unique to a time or place that can affect consumer decision making and the value received from consumption
Situational Influences
Value derived from a product that helps the consumer with some task
Utilitarian Value
Value derived from the immediate gratification that comes from some activity
Hedonic Value
A personal assessment of the net worth obtained from an activity
Value
A planned way of doing something
Strategy
Way a company goes about creating value to customers
Marketing Strategy
A common condition in which a company views itself in a product business rather than in a value, or benefits producing, business
Marketing Myopia
Way a firm is defined and its general goals
Corporate Strategy
Ways marketing management is implemented; involves price promotion, product, and distribution decisions
Marketing Tactics
Actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its benefits
Augmented Product
Business practice wherein companies operate with the understanding that products provide value in multiple ways
Total Value Concept
The realization that consumer is necessary and must play a part in order to produce value
Value Co-Creation
Combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy
Marketing Mix
Identified segment or segments of a market that a company serves
Target Market
Separation of a market into groups based on the different demand curves associated with each group
Market Segmentation
Reflects how sensitive a consumer is to change in some product characteristic
Elasticity
Marketplace condition in which consumers do not view all competing products as identical to one another
Product Differentiation
Way a product is perceived by a consumer
Product Positioning
Tool used to depict graphically the positioning of competing products
Perceptual Map
Combination of product characteristics that provide the most value to an individual consumer or market segment
Ideal Points
Approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer
Customer Lifetime Value (CLV)
