Chapter 3 | Value Flashcards Preview

HTM 381 Revenue Management > Chapter 3 | Value > Flashcards

Flashcards in Chapter 3 | Value Deck (10)
Loading flashcards...
1
Q

Perceived value

A

Consumer assigns value for something based on satisfaction level

2
Q

Total value

A

Perceived benefits - price

3
Q

Total customer value

A

Perceived value - acquisition cost

4
Q

4 groups of consumption

A
  1. Your money on you: good discounts
  2. Your money on others: quality
  3. Others money on you: splurge
  4. Others money on others: Quality
5
Q

4 I’s of service and how to address them

A
  1. Intangibility: Make intangible tangible
  2. Inconsistency: Standardization
  3. Inseparability: Invest in front line employees
  4. Inventory: Forecast accurately
6
Q

How to increase customers’ perceived value

A
  1. Benefits, not features
  2. Marketing
  3. Understand needs/wants/desires
  4. Product
  5. Promotion
  6. Place
7
Q

Risks of slashing price

A
  1. Destroys customer’s perceived value
  2. Delays consumption
  3. Increased customer negotiation power
8
Q

Purpose of market segmentation

A

To offer products or use marketing approaches tailored for different groups

9
Q

What is market segmentation?

A

The process of dividing large heterogeneous markets into smaller markets to match their unique needs

10
Q

Categories of segmentation

A
  1. Behavior patterns
  2. Demographics
  3. Geographic
  4. Psychographic