Values in the Consumer Behavior Choice Model
Answer these 4 questions:
NO MORE than 2 pages per question. (So 8 pages, but will accept 6 if 7 is too much) Can be less. NO word count. SINGLE SPACED. DUE by midnight, currently 10pm (Chicago time).
1. DISCUSS THE 5 VALUES IN THE CONSUMER CHOICE MODEL COVERED WEEK 2. EXPLAIN HOW EACH VALUE IS MEASURED, AND THE SOCIAL SCIENCE DISCIPLINE EACH VALUE IS DERIVED FROM.
Here's some info from the lectures:
Functional Value
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Functional value - the perceived utility acquired by an alternative as the result of its ability to perform its functional, utilitarian, or physical purposes. Alternatives acquire functional value through the possession of salient functional, utilitarian, or physical attributes.
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Functional value generally relates to such attributes as performance, reliability, durability, and price. The assumption that choice is based on functional value underlies economic utility theory, popularly expressed in terms of “rational economic man.” Utility theory posits that the alternative chosen will be the one that maximizes utility
Social Value
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Social Value – The perceived utility acquired by an alternative as a result of its association with one or more specific social groups. Alternatives acquire social value through association with positively or negatively stereotyped demographic, socioeconomic, and cultural-ethnic groups.
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The attribution of social value occurs most frequently for very visible items of consumption. Again, a wide range of examples is applicable. Certainly, choices of products, activities, and locations to be shared with others may be influenced by social value. To illustrate, choices involving gifts and recreational alternatives are often influenced by social norms. However, products generally thought to be functional or utilitarian and products acquired for personal use may also be selected on the basis of social value. Examples include automobiles and kitchen applianc
Emotional Value
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Emotional Value – The perceived utility acquired by an alternative as a result of its ability to arouse feelings or affective states. Alternatives acquire emotional value when associated with specific feelings or when the facilitate or perpetuate feelings.
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Many products are associated with or facilitate the arousal of specific emotions or feelings – for example, comfort, security, excitement, romance, passion, anger, fear, and guilt. Music, art, religion, and products that affect self-image (e.g., clothing and cosmetics) are often associated with emotional value. However, seemingly utilitarian products are also associated with emotional value. Many foods arouse feelings of comfort and security through their association with pleasant childhood experiences, and many consumers are said to have “love affairs” with their cars. Emotions are presumed to have no underlying cognitive structure or “rationale” because they are difficult to describe or explain to oth
Conditional Value
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Conditional value - the perceived utility acquired by an alternative as the result of the specific situation or the context faced by the choice maker. Alternatives acquire conditional value in the presence of antecedent physical or social contingencies that enhance their functional or social value, but do not otherwise possess this value.
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Conditional value often influences the choice maker to deviate from his or her typical or planned pattern of behavior. Conditional functional value often dominates in emergency situations, in situations where an alternative is available at a special sale price, and in situations characterized by unusual resource constraints or abundances. Conditional social value often dominates in situations where cultural norms dictate behavior. The saying “when in Rome, do as the Romans do’ reflects such a situation
Epistemic Value
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Epistemic value – the perceived utility acquired by an alternative as a result of its ability to arouse curiosity, provide novelty, and/or satisfy a desire for knowledge. Alternatives acquire epistemic value through the capacity to provide something new or different.
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Epistemic value is certainly provided by alternatives associated with entirely new experiences. However, an alternative representing a simple change of pace can also provide epistemic value. An alternative selected due to its epistemic value may be anything perceived by the consumer as new or different. It may be chosen because the consumer is bored or satiated with her or his current brand (buys a new brand of coffee), is curios about a potential experience (visits a new night club), or desires to learn more about the alternative (experiences another culture)
2. IN THE MODEL OF CONSUMER DECISION-MAKING IN CHAPTER 15, IT IS BROKEN UP INTO DIFFEERNT PARTS. GO OVER EACH PART, AND EXPLAIN HOW A MARKETER CAN USE EACH PART TO DEVELOP A SUCCESSFUL MARKETING STRATEGY
There are four types of models which explain why consumers act the way they do. In an economic view, there is perfect competition and the consumer makes rational decisions. They are aware of all choices, can rank their benefits, and can choose the best alternative. Unfortunately for many, the perfect consumer does not exist. On the other extreme is the passive view, in which the consumer is passive to the marketer in making their decisions. Here the consumer plays no role as they would in a cognitive view where the consumer is a thinking problem solver. We have discussed emotions and they are at the center of the emotional model of consumer decision making.
An Economic View
A Passive View
A Cognitive View
An Emotional View
An overview of consumer decision making shows three main sections. The first includes all the external influences on a consumer. This includes socio-cultural factors as discussed in previous chapters, as well as the marketer’s efforts. The second section includes the individual’s consumer decision making, which occurs in the three stages of need recognition, prepurchase search, and evaluation of alternatives. This process is guided by psychological factors and the consumer’s experiences. The third major section includes the actual purchase and how the consumer feels and what they think after they purchase the product.
3. DISCUSS THE EXTERNAL INFLUENCES OF CULTURE AND SUBCULTURE IN DETAIL. PROVIDE EXAMPLES FROM THE BOOK THAT EXPLAINED HOW COMPANIES USED BOTH TO MARKET THEIR PRODUCT OR SERVICE.
Text Book: Consumer Behavior, Schiffman and Kanuk, Prentice Hall, 10th ed. (Textbook-CB)
4. WHAT IS THE DIFFERENCE BETWEEN MARKET SEGMENTATION AND STRATEGIC TARGETING? CHOOSE ANY COMPANY AND EXPLAIN HOW THEY ARE USING BOTH OF THESE TO SUCCESSFULLY MARKET THEIR PRODUCTS AND/OR SERVICES.
NO MORE than 2 pages per question. Can be less. SINGLE SPACED.
Professor’s Name
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Consumer Behavior
1 DISCUSS THE 5 VALUES IN THE CONSUMER CHOICE MODEL COVERED WEEK 2. EXPLAIN HOW EACH VALUE IS MEASURED, AND THE SOCIAL SCIENCE DISCIPLINE EACH VALUE IS DERIVED FROM.
The five primary values in the consumer choice model are functional, conditional, social, emotional, and epistemic values.
Functional value refers to the perceived utility that is acquired as an alternative due to its ability to perform physical, utilitarian, or functional purposes. In particular, it relates to various attributes, such as durability, price, reliability, and performance. A profile of choice attributes is the measure of functional value. Functional value assumes that the consumer choice underlies the economic utility theory, which is popularly known as the “rational economic man.” Based on this concept, the alternative selected is the one with maximum utility. Functional value is usually derived from the attributes or characteristics of a specific product. For example, a person’s decision to buy a car might be based on the vehicle’s maintenance record and fuel economy.
Social value entails the perceived utility that is obtained by an alternative, which emanates from the association with a single or more social group. The alternatives gain social value due to the association with negatively or positively stereotyped socioeconomic, cultural-ethnic, and demographic groups. The measure of social value is the profile of choice. Choices might involve visible commodities, such as jewelry and clothing, or services and goods that are shared with others, such as gifts. The social science discipline in which social derived is derived from is human behavior and cultural aspects. For example, an individual’s choice to buy a car is evoked by social factors as opposed to its functional performance.
Emotional value involves the perceived utility that is obtained by an alternative due to its ability to arouse affective states or feelings. Specifically, alternatives get emotional value for being associated with specific feelings. The measure for emotional value is the profile of feelings that are associated with an alternative. The social science discipline derived from emotional value is the cognition or emotional responses.
Conditional value entails the perceived utility that is gained from an alternative due to a specific context or situation encountered by the choice maker. Alternatives usually acquire conditional value due to the presence of antecedent social or physical contingencies, which enhance their social or functional value, but do not possess the value. The measure of a conditional value is the profile of the choice contingencies. The social science derived from conditional value is stimulus dynamism. For instance, some commodities have seasonal value, such as Christmas cards, while others are associated with events that occur only once in life, such as a wedding gown.
Epistemic value refers to the perceived utility that is acquired by an alternative due to the ability of a product to provide novelty, satisfy a specific desire, or arouse curiosity. Alternatives obtain epistemic value due to their capacity to offer something different or new. The measure of epistemic value is the profile of new experiences that provide that value. The social science derived from epistemic value is social epistemology. Alternatives might be selected if the consumer is satiated or bored with the current brand and is curious or want to try something new. For example, an individual might decide to visit a newly opened nightclub to see whether it is better than the one he or she is used to in the city.
2 IN THE MODEL OF CONSUMER DECISION-MAKING IN CHAPTER 15, IT IS BROKEN UP INTO DIFFEERNT PARTS. GO OVER EACH PART, AND EXPLAIN HOW A MARKETER CAN USE EACH PART TO DEVELOP A SUCCESSFUL MARKETING STRATEGY.
The four views of consumer decision-making that marketers can use to develop successful marketing strategies include the following:
An economic view – When using this perspective, it is perceived that there exists perfect competition and that consumers make only rational decisions. In other words, consumers know all product choices, can rank products’ benefits, and that they can select the best alternative. Marketers can use this model to come up with a successful marketing strategy by altering the price, substitution, or income effect. For example, an increase in the price of a specific new substitute product might be interpreted by consumers as if the commodity is of high-quality as opposed to existing ones. As such, consumers will purchase the product to try it out.
A cognitive view – This view perceives consumers as problem solvers. In particular, consumers process the available information about retail outlets or selected brands before they buy a product. Since consumers seek information to know the product that will satisfy their needs and enrich their lives, marketers can take this advantage to promote commodities. They can create advertisements that compare different competing products, such as iPhone 12 and Samsung Note20, and show how the product they are advertising solve many users’ problems as compared to the other. That way, consumers are likely to purchase the phone with more benefits than the other.
A passive view – In this perspective, consumers are passive to marketers when it comes to decision making. In other words, consumers are easily carried away by marketers’ self-oriented and promotional efforts. They are irrational decision-makers and impulsive. In that light, marketers can significantly influence consumers’ choice of products by creating marketing strategies that are attractive and appealing to customers. For example, marketers can use visual or oral manipulation when advertising a car. They can use high picture quality and graphics and other new technologies, such as three-dimension to display photos of the products they a...