MKT 3020 Consumer Behavior Chapter 2 Consumer Value Framework CVF represents consumer behavior theory illustrating factors that shape consumption related behaviors and ultimately determine the value associated with consumption Refer to figure in book Components of the CVF CRM Relationship Quality and Customer Relationship Management o Reflects the interaction between a consumer and a brand retailer or service provider o CRM customers form relationships with companies rather than companies conducting individual transactions with customers Consumption Process o Questions to ask What is needed What options for exchange are available o Factors that influence the Consumption Process Internal Influences Personality of Consumer Situational Influences External Influences Consumer Psychology and Social Environment and Internal Influences that can be thought of as part of the consumer things that go on inside of the consumer or o Psychology of the Consumer Cognition the thinking or mental processes that go on as we process and store things that can become knowledge activities or associated with specific objects the feelings experienced during consumption Affect o Personality of the Consumer Behavior personality and lifestyles External Influences life as a consumer include the social and cultural aspects of o Social Environment shape a consumer s everyday experiences the people and groups who help o Situational Influences unique to a time or place that can affect consumer decision making and the value received from consumption Value a personal assessment of the net worth a consumer obtains from an activity Relevant Value received from activities involving interactions between consumers and the firm or its products The Value Equation Value What you get benefits What you give costs Benefits quality convenience emotions prestige experience Costs time money effort opportunity emotions If benefits outweigh the costs this equates to positive value If costs outweigh the benefits this equates to negative value Utilitarian Value derived from a product that helps the consumer solve problems and accomplish tasks that are part of being a consumer practical items Hedonic Value the immediate gratification that comes from experiencing some activity emotional items Total Value Concept practiced when companies operate with the understanding that products provide value in multiple ways Utilitarian Value Low High Low Bad Positioning Okay Positioning High Okay Positioning Superior Positioning Hedonic Value