Exam 2: Value and the Consumer Behavior Value Framework

Melanie and her daughter enjoy shopping together even if they do not purchase anything. For them, shopping is an end in and of itself, not just a means to an end. Which type of value are they experiencing?

An act of consumption cannot provide both utilitarian and hedonic value.

The most basic truth of economics is that as price increases, quantity demanded will decrease.

Products are multifaceted and can provide value in many ways.

A company would be foolish to turn away a customer.

Individual differences have little effect on the value experienced by consumers and the reaction consumers have to consumption.

In the value equation, sacrifice includes things such as quality, prestige, opportunity, and image.

SUPERFOCUS SCENARIO Superfocus is a revolutionary concept in eye glasses--it even received a 2010 The Wall Street Journal innovation award. It is a type of eyeglass that allows the wearer to change correction without changing glasses, or having to look through a certain part of the lens like bifocal and progressive lens wearers must do. The round lenses are actually two lenses with a clear fluid in-between. The outer lens is hard, while the inner lens is flexible. There's a little slider on the bridge that, when moved, pushes the fluid and changes the shape of the inner, flexible, lens. That, in turn, changes the correction, so a user can see near, far, and everything in-between just by changing the position of the slider. The only catch is that the lens have to be perfectly round and the frames are made out of stainless steel or titanium aluminum, limiting the frame style and color choices for consumers. Actually, they look pretty goofy. Superfocus can be purchased through eye care professionals or directly from the manufacturer online. The company has recently started using direct-response television advertising to drive traffic to the website so consumers can learn more about this product and sign up for a free trial offer. With prices starting at $700 a pair, the free trial might help overcome some resistance due to the relatively high price. -Refer to Superfocus Scenario. Superfocus glasses were developed for people who have multiple prescriptions but do not like multi-focal lenses like bifocals or who have to continually change glasses for different tasks like reading, computer work, or driving. By solving this problem for consumers, which type of value is Superfocus delivering?

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

Utilitarian value is derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer.

Customer lifetime value is equal to the net present value of the stream of profits over a customer's lifetime plus _____.

Which of the following refers to the thinking or mental processes that go on as we process and store things that can become knowledge?

Explain how perceptual maps are useful in understanding consumers and delivering superior value.

A planned way of doing something is known as a(n) _____.

Things unique to a time or place that can affect consumer decision making and the value received from consumption are known as _____.

Sensitivity represents the degree to which a consumer is sensitive to changes in some product characteristic.

Define market segmentation and explain how it is a marketplace condition. Describe different market segments of McDonald's customers.

Kyle purchased a Macbook Pro and an extended warranty. He also purchased one-on-one training to learn how to use the computer. This is an example of a(n) _____.

Consumers play a role in the creation of the value offered by marketers.

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