What is the consumer value framework? Main concepts & diagram.
The CVF represents consumer behaviour theory, illustrating factors that shape consumption- related behaviours and ultimately determine the value associated with consumption.
Cognition: the thinking or mental processes that go on as we process and store things that can become knowledge.
Affect: refers to the feelings experienced during consumption activities or associated with specific objects.
What is consumer value? Include examples.
Value is a person assessment of the net worth obtained from an activity. So basically, how much you are getting back from what you put in.
There are two types of value:
1. Utilitarian: perceived benefits.
2. Hedonic: emotional feelings.
Total value concept: basic benefits + augmented product + the feel benefits.
Value co-creation: the realisation that a consumer is necessary and must pay a part in order to produce value.
Activities involved in the decision making process.
1. Need recognition.
2. Search for information.
3. Evaluation of alternatives.
4. Choice.
5. Post-choice evaluation.
Why the decision making process is not a model.
INTERNAL INFLUENCES Consumer Psychology
• Learning
• Perception
• Implicit memory
• Info processing
• Memory
• Categorisaton
• Attitudes Personality of Consumer
• Motivation
• Personal values
• Personality
• Lifestyles
• Emotional expressiveness
CONSUMPTION PROCESS
• Needs
• Wants
• Exchange
• Costs and benefits
• Reactions
VALUE
• Utilitarian
• Hedonic
RELATIONSHIP QUALITY
• CS/D
• Switching behaviour
• Customer share
• Customer commitment
EXTERNAL INFLUENCES Social Environment
• Acculturation/encult uration
• Culture and cultural values
• Reference groups
• Social class
• Family influence Situational influences
• Atmospheric
• Time
• Conditions
The decision making process is not a model because consumers do not always follow it strictly step-by-step. It is classified as a framework because it provides loose guidelines about how
consumers make a decision about purchases. However, more often than not, consumers will move back and forth between steps, skip steps, or stop half way through the process.
3 major decision-making research perspectives.
1. Rational perspective: Consumers are rational and they carefully arrive at their decision.
2. Experiential perspective: Decision-making is often influenced by the feelings associated with consumption.
3. Behavioural influence perspective: Decisions are responses to environmental influences.
3 major types of decision-making approaches.
1. Habitual decision-making: Consumers makes the purchase all the time and seeks no information about the product. Based on prior consumption habits.
• Brand loyalty: Consumers continue to buy a certain product because they feel emotions towards it, e.g. it possesses hedonic value.
• Brand inertia: The consumer buys the product out of habit, however there are no feelings towards the brand and the consumer would easily switch between brands.
2. Limited decision-making: Consumers reach decisions based largely on prior beliefs. There are few, if any, comparisons across brands.
3. Extended decision-making: Consumers move carefully through the decision-making
process, as these purchases are highly involved and have large risks associated with them.
Involvement: The degree of personal relevance that a consumer finds in pursuing value from a given act.
Risk: Financial, social, performance, physical, time.
Importance of consideration set in decision-making process.
The consideration set is so important in the decision-making process because it is from this set that consumers will chose the product they will buy.
Difference in evaluative and determinant criteria.
Evaluative criteria: the individual attributes or elements of a product or decision that are used by consumers in making a decision. For example, when buying a TV, the evaluative criteria would be the price, size, quality, brand, and look.
Determinant criteria: the evaluative criteria that are most carefully considered and are directly related to the actual choice that is made. In the TV example, the determinant criteria could be that it ‘has to be a Sony’, or it ‘has to be a 42”’.
UNIVERSAL SET Every brand in the market.
AWARENESS SET Brands you are aware of.
CONSIDERATION SET Brands you consider
INERT SET
Brands you are indifferent to
consider INEPT SET
Brands that are unacceptable consider
! UNIVERSAL SET Every brand in the market.
