Week 2 Flashcards
Value (consumers)
Value is a personal assessment of the net worth obtained from an activity
Two types of value
Utilitarian (useful or practical rather than attractive)
Hedonic (pleasant, gratification that comes from some activity)
Value equation
Value = what you get – what you give
Factors of the consumer value framework
CVF determines the value associated with consumption .
Internal influences, such as the psychology of the consumer and the personality of the consumer.
External influences, such as the social environment and situational differences.
Vision statements
Vision statements are usually one liner and define what your company stands for, the overarching reason for the brand’s existence.
E.g., Nike’s vision is “To bring inspiration and innovation to every athlete in the world”.
Mission statements
Mission statements are broad and talks about how the brands wants to operate with reference to their stakeholders.
E.g., Nike’s mission is: “to do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team, and by making a positive impact in communities where we live and work.”
Total Value Concept
Every product’s value is made up of the basic benefits, plus the augmented product, plus the ‘feel’ benefits.
Value co-creation
The realisation that a consumer is necessary and must play a part in order to produce value.
Product differentiation
A marketplace condition in which consumers do not view all competing products as identical to one another.
Market segmentation
The separation of a market into groups based on different demand curves associated w each group.
Perceptual mapping
A visual tool that helps marketers understand how consumers perceive their products, brands, or services.
