Chapter 3 | Value Flashcards
1
Q
Perceived value
A
Consumer assigns value for something based on satisfaction level
2
Q
Total value
A
Perceived benefits - price
3
Q
Total customer value
A
Perceived value - acquisition cost
4
Q
4 groups of consumption
A
- Your money on you: good discounts
- Your money on others: quality
- Others money on you: splurge
- Others money on others: Quality
5
Q
4 I’s of service and how to address them
A
- Intangibility: Make intangible tangible
- Inconsistency: Standardization
- Inseparability: Invest in front line employees
- Inventory: Forecast accurately
6
Q
How to increase customers’ perceived value
A
- Benefits, not features
- Marketing
- Understand needs/wants/desires
- Product
- Promotion
- Place
7
Q
Risks of slashing price
A
- Destroys customer’s perceived value
- Delays consumption
- Increased customer negotiation power
8
Q
Purpose of market segmentation
A
To offer products or use marketing approaches tailored for different groups
9
Q
What is market segmentation?
A
The process of dividing large heterogeneous markets into smaller markets to match their unique needs
10
Q
Categories of segmentation
A
- Behavior patterns
- Demographics
- Geographic
- Psychographic
