Value and the Consumer Behavior VALUE Framework
WHAT DO YOU THINK Polling Question
I get a lot out of shopping even when I don’t buy anything. Strongly disagree123456 7 Strongly agree
Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far.
After studying this chapter, the student should be able to:
L01Describe the consumer value framework, including its basic components. L02 Define consumer value and compare and contrast two key types of value. L03Apply the concepts of marketing strategy and marketing tactics to describe the way firms go about creating value for consumers. L04Explain the way market characteristics like market segmentation and product differentiation affect marketing strategy. L05Analyze consumer markets using elementary perceptual maps. L06Justify consumers’ lifetime value as an effective focus for long-term business success.
Suggested Lecture Opener
Consumer segments play a vital and sometimes surprising role in marketing. Consider the wine industry. The image that likely comes to mind is of an older crowd composed mostly of Baby Boomers. While this image isn’t completely wrong, the demographics of wine consumption have changed dramatically in the last decade. According to the Wine Market Council, under-35 consumers have increased by almost 40% over the last year alone. This means more and more of the consumers who are buying and drinking wine are Millennials—a target segment almost as large as the Boomers and one marketers are already eager to reach. [Source: Jessica Yadegaran, “Millennials: The Next Generation of Wine Judges,” San Jose Mercury News, July 28, 2010, http://www.mercurynews.com.]
Lecture Outline with PowerPoint® Slides
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LO1.Describe the consumer value framework, including its basic components.
The Consumer Value Framework and Its Components
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Q:Should the band allow their fans to choose the type of music they play?
A:Answers will vary. In the introduction to this chapter, the pie chart shows different consumer preferences for types of music.
The Consumer Value Framework
The Consumer Value Framework (CVF) represents consumer behavior theory that illustrates the factors shaping consumption-related behaviors and ultimately determines the value associated with consumption. Exhibit 2.1 explains the various functions of CVF in greater detail. All components in the model are related and consist of the following elements: • Internal influences
• External influences
• Consumption process
• Relationship quality
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Value and the CVF Components
The concept of value is at the heart of consumer behavior and found throughout the entire book.
A term used to describe this relationship that has gained popularity over the years is Customer Relationship Management (CRM). The basis of this concept is that a company builds a relationship with a customer over a...