Value & The Consumer Value Framework

Chapter 2

Consumer Value Framework

Consumer Value Framework

What is it?

See slide

Relationship Marketing/Management

Relationship quality

Consumer Value Framework

Internal Influences

AKA Psychological

External Influences

Social & Situational

Decision-making Process

Source: http://business.latech.edu/~bbabin/MKT530/CVF.jpg

Value

Definition Can vary, depending on product

Value of fast food: Value of Wal-mart:

Value = Benefits Costs

Benefits Costs

Source: http://latimesblogs.latimes.com

Utilitarian v. Hedonic Value

Utilitarian Value

What is it? Examples:

Hedonic Value

What is it? Examples:

Source: http://www.southlaketahoe.com

Marketing Strategy & Value

Strategy

Planned way of doing something

Corporate Business unit Department/Functional

Marketing Strategy

Marketing Strategy & Value

Total Value Concept

Looks at EVERYTHING Augmented Product

Ferrari

Benefits:

Costs:
Source: http://www.gothamdreamcars.com

Market Characteristics

Target Markets Market Segmentation

Types of segmentation Product differentiation

Product Positioning

Product positioning

Perceptual map Ideal points

Source: http://www.wikipedia.org

Customer Lifetime Value

If you are close to ideal, you provide value!! Customer Lifetime Value 80/20 rule