The Concept Of Value And The Consumer Behviour Value Framework

Question 1

What is the consumer value framework (CVF)?

Answer 1

The consumer value framework (CVF) is a consumer behaviour theory that illustrates factors that shape consumption-related behaviours and ultimately determine the value associated with consumption.

Question 2

What are the basic components of the consumer value framework?

Answer 2

The CVF includes internal influences, external influences, and the consumer decision-making process.

Question 3

What are internal influences in consumer behaviour?

Answer 3

Internal influences are psychological factors that affect a consumer’s decision-making, including cognition and affect.

Question 4

What is cognition in the context of consumer behaviour?

Answer 4

Cognition refers to the thinking or mental processes that occur as consumers process and store information.

Question 5

What is affect in the context of consumer behaviour?

Answer 5

Affect refers to the feelings associated with objects or activities.

Question 6

What are external influences in consumer behaviour?

Answer 6

External influences are social, cultural, media, and environmental factors that affect consumer decision-making.

Question 7

What is the social environment in consumer behaviour?

Answer 7

The social environment includes elements that deal with how other people influence consumer decision-making and value.

Question 8

What are situational influences?

Answer 8

Situational influences are unique factors related to a specific time or place that can affect consumer decision-making and the value received from consumption.

Question 9

What is customer relationship management (CRM)?

Answer 9

CRM is a systematic information management system that collects, maintains, and reports detailed information about customers to enable a more customer-oriented managerial approach.

Question 10

What is relationship quality?

Answer 10

Relationship quality refers to the degree of connectedness between a consumer and a retailer, brand, or service provider.

Question 11

What is the core concept of consumer behaviour?

Answer 11

The core concept of consumer behaviour is value.

Question 12

How is value defined in consumer behaviour?

Answer 12

Value is a personal assessment of the net worth obtained from an activity.

Question 13

What is the value equation?

Answer 13

The value equation models value by comparing ‘what you get’ from product consumption against ‘what you have to give’ to obtain the product.

Question 14

What is utilitarian value?

Answer 14

Utilitarian value is derived from a product that helps the consumer with some task.

Question 15

What is hedonic value?

Answer 15

Hedonic value is derived from the immediate, positive gratification that comes from some activity.

Question 16

What is marketing strategy?

Answer 16

Marketing strategy is the way a company goes about creating value for customers.

Question 17

What is marketing myopia?

Answer 17

Marketing myopia is a condition where a shortsighted company views itself in a product business rather than in a value or benefits-producing business.

Question 18

What is the total value concept?

Answer 18

The total value concept is the understanding that products are multifaceted and can provide value in many ways.

Question 19

What is value co-creation?

Answer 19

Value co-creation is the realization that a consumer is necessary and must play a part in producing the value.

Question 20

What is market segmentation?

Answer 20

Market segmentation is the separation of a market into groups based on the different demand curves associated with each group.

Question 21

What is product differentiation?

Answer 21

Product differentiation is a marketplace condition where consumers do not view all competing products as identical.

Question 22

What is product positioning?

Answer 22

Product positioning is the way a product is perceived by a consumer.

Question 23

What is a perceptual map?

Answer 23

A perceptual map is a tool used to graphically depict the positioning of competing products.

Question 24

What is customer lifetime value (CLV)?

Answer 24

Customer lifetime value (CLV) is the approximate worth of a customer to a company in economic terms, representing the overall profitability of an individual consumer.