Exam 2: Value and the Consumer Behaviour Value Framework

One conceptual difference between utilitarian value and hedonic value is that utilitarian value is an end in and of itself rather than a means to an end.

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

It is the day before Christmas and Mark has not even started shopping for gifts for his family. He rushes to the mall and buys the first things he sees. Which of the following is likely having the greatest impact on Mark's behaviour?

Customer Lifetime Value (CLV) represents the approximate worth of a customer to a company in economic terms.

Which of the following is NOT an element of the marketing mix?

How do hedonic value and utilitarian value differ?

A basic CRM premise is that customers form relationships with companies as opposed to companies conducting individual transactions with customers.

SUPERFOCUS SCENARIO Superfocus is a revolutionary concept in eyeglasses-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 lenses have to be perfectly round and the frames are made out of stainless steel or titanium aluminum, limiting the frame style and colour 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. For Superfocus, which of the following is represented by people who need multifocal lenses?

Companies embracing the total value concept demonstrate an understanding that products provide value in multiple ways.

SUPERFOCUS SCENARIO Superfocus is a revolutionary concept in eyeglasses-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 lenses have to be perfectly round and the frames are made out of stainless steel or titanium aluminum, limiting the frame style and colour 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 multifocal 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?

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

The Canadian National Bank is analyzing its customer data to determine if groups other than simply consumer and business customers can be identified. It is looking at the frequency of branch visits, use of ATMs, online banking activity, loan activity, and account balances for each customer. The bank has identified three groups of customers based on these factors and is considering offering different products to better meet the needs of each group. What marketing concept do these different groups of customers represent?

Which of the following is NOT an example of "what you give," or sacrifices, in the value equation?

What market segment will a company serve with a specific marketing mix?

Black and Decker is well known for power tools. However, if the company thinks of itself merely as a power tool company instead of a company that delivers the benefits users want, such as cut materials or holes in materials, it could be taking a short-sighted focus of its business. If a technologically advanced device is developed that could replace the need for power tools to deliver those benefits, this company could go out of business. What would Black and Decker be said to suffer from if this occurs?

Which of the following improves when a consumer realizes high value from an exchange with a company?

What risk is faced by a company that views itself in a product business, rather than in a value- or benefits-producing business?

Which concept is premised on the realization that a consumer is necessary and must play a part in order to produce value?

Atmospherics, time and timing, and conditions are situational influences on consumer behaviour.

Cognition refers to the thinking or mental processes that go on as we process and store things that can become knowledge.