Week 1

Question 1

what is Value

Answer 1

Value is the consumers’ perception of what they gained vs. what they gave up to purchase a product or use a service.

Value = Benefits - Costs

Question 2

what is Utilitarian value

Answer 2

Gratification derived because something helps a consumer solve a problem or accomplish some task

Consumers provide a rational explanation for their purchases

Value is provided because the object or activity allows something good to happen or be accomplished

Question 3

What is Hedonic value

Answer 3

Value derived from immediate gratification that comes from some activity

Provided by the actual experience and emotions associated with consumption

Emotional and subjective in nature

Action to obtain hedonic value can be difficult to explain objectively

Question 4

What is consumption

Answer 4

Process by which consumers use and transform goods, services, or ideas into value
Involves interaction between the marketer and consumer
Outcomes affect the consumer’s well-being and quality of life

Question 5

What is consumer behaviour

Answer 5

the value-seeking activities that take place as people go about addressing their real needs

Involves multiple psychological events like:
Thinking
Feeling
Behaving

Entire process culminates in value

Question 6

what is the Total value concept

Answer 6

Every product’s value is made up of the basic benefits, plus the augmented product, plus the “feel” benefits.

Question 7

what does “Value is co-created” mean

Answer 7

Value co-creation is the realization that a consumer is necessary and must pay a part in order to produce value.