Chapter 3 | Value

Question 1

Perceived value

Answer 1

Consumer assigns value for something based on satisfaction level

Question 2

Total value

Answer 2

Perceived benefits - price

Question 3

Total customer value

Answer 3

Perceived value - acquisition cost

Question 4

4 groups of consumption

Answer 4

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

Question 5

4 I’s of service and how to address them

Answer 5

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

Question 6

How to increase customers’ perceived value

Answer 6

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

Question 7

Risks of slashing price

Answer 7

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

Question 8

Purpose of market segmentation

Answer 8

To offer products or use marketing approaches tailored for different groups

Question 9

What is market segmentation?

Answer 9

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

Question 10

Categories of segmentation

Answer 10

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