Exam 2: Value and the Consumer Behavior Value Framework

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

FordTech is a software company whose clients are based in France.The company has formed a team to decide the direction the organization should take over the next five years.The focus of this team is to increase their clientele in Europe.The company is keen on taking advantage of the opportunities and avoiding threats in the changing environment.This team is involved in developing the _____ for the organization.

Consumers do not view all types of coffee as identical to one another.Some prefer iced coffee,while others will only drink non-fat latte.Still others will only drink chai latte or a cappuccino.This marketplace condition in which consumers do not view all competing products as identical to one another is called _____.

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

_____ are things that can be thought of as part of the consumer.

Amy is a member of the readers' club in her school.Before she buys any new book,she checks what is popular with the others in her club.Amy's readers' club is part of her _____ that influences Amy's everyday experiences.

The market segment a company will serve with a specific marketing mix is referred to as the _____ market.

Cullen and MacNeil's is a well-known store that sells writing material.The company faces strong competition from the electronic media.If the company thinks of itself merely as a paper company instead of a company that delivers the benefits users want,it could be taking a short-sighted view of its business.That is,Cullen and MacNeil's could suffer from _____.

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 need to be made out of stainless steel or titanium aluminum. This limits the frame style and color choices for consumers. 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.While consumers need and want this type of eyeglass,they also want something that looks fashionable.Most consumers would not consider the round,silver stainless steel or titanium aluminum charcoal gray frame fashionable.Thus,on a perceptual map,Superfocus would _____.

A product with backward sloping demand displays _____.

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

A customer relationship management system allows a firm to be more customer-focused.

Sam needed a new pair of bicycle pedals.After visiting several stores to find the right ones,he purchased a pair from a local store called All Things Sports and was satisfied that his needs were met.Which of the following best describes the type of value Sam received?

Customer lifetime value is equal to sales attributed to a particular customer minus the costs associated with satisfying that customer over the lifetime of that customer.

_____ captures how much gratification a consumer receives from consumption.

The concept of "value" captures how much gratification a consumer receives from consumption.

Community Trust Bank is analyzing its customer data to determine if groups other than the business customers can be identified.The bank 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.Which of the following marketing concepts is represented by this exercise?

The approximate worth of a customer to a company in economic terms is known as the _____.

Customer lifetime value includes the net present value of the stream of profits over a customer's lifetime and _____.

Which of the following is an internal influence on consumer value?