Conative way to determine consumer perception value
Conative way to determine consumer perception value is where the consumer's thought process about a product is based upon the likelihood of the brand purchase. It requires a company to understand the consumer’s perception about their product. And also what is the customer looking for in the product of his or her choice as compared to its competitors.
Decision Making Framework for Consumer Perception Value and How it is measured.
The framework for the consumer perception value is based linking antecedents of perceived value and willingness to buy. The framework is built in a way where the price of a service is determined by the quality of service being offered. When the price of the service
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Price Based Theories - This first theory focuses on the classification and study of the quality price relationship. And this led to the initial conceptualization of value as a cognitive tradeoff between perceptions of quality and sacrifice. As per this view the external ques influence product quality and value. Various instances so offered by Agarwal and Teas (2001, 2002, 2004); Dodds and Monroe (1985); Dodds et al. (1991); Grewal et al. (1998a); Li et al. (1994); Monroe (1979, 1990); Monroe and Chapman (1987); Monroe and Krishnan (1985); Oh (2003); Teas and Agarwal (2000); Wood and Scheer (1996) state the importance of price which does a bearing on the marketability of a …show more content…
And if one of them is removed then the brand would not be there. In the words of Howard Schultz, CEO Starbucks, “Every customer is important”. This line clearly states that customer perception of a product or the value of a product which is perceived by the consumer is influential to the retail corporate branding and corporate image of a business
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
Price can sometimes be an indicator of quality with a higher price indicating higher quality (Mowen & Minor, 1998). Consumers perceive that a higher price can be attributed to the higher cost of quality control. Some consumers are highly price sensitive (elastic demand), whereby a high price may shift consumers to competitive brands (Mowen & Minor, 1998). Therefore, price can have a positive or negative influence on customers.
“Our greatest fear is not in never falling, but in getting up every time we do.” – Confucius
In this study, it will examine the interrelationship between the seven constructs, they are: functional value (FV), price value (PV), social value (SV), emotional value (EV), satisfaction with brand page (SAT), loyalty (LY) and positive word of mouth (WOM). Indicate the important factors for a successful brand fan pages provide reference for Hong Kong marketers to build their own brand fan page. This study would like to valid the perceived customer value: functional value (FV), price value (PV), social value (SV) and emotional value (EV) in Hong Kong, to examine if these are significant to satisfaction, loyalty and positive word of mouth
These factors include marketing objectives, government regulations, customer perceptions and market demand. Business owners must understand these different techniques to determine the best value for their products. There are nine most recurrent methods that are used today such as Cost Based Pricing, Value Based Pricing, Optimal Pricing, Penetration Pricing, Loss-leading Pricing, Participative Pricing, Auction Pricing, Free and Premium Pricing and Price Adjustment Tactics. Customers must be thought about considerably in deciding the best pricing method. If the product is easily made, the business would not be able to charge at a high rate. If the business owner is disposed to pay the set price, it should not be a problem for the customer to pay that price. A drink from a lemonade stand should be inexpensive to magnetize cash paying customers. Resulting in obtaining a steady and incrementing demand for the item. Value Based Pricing is the best method for this product because it is built from a consumer’s cognizance of the cost to acquire a specific product or
Tam, J 2004, ‘Customer Satisfaction, Service Quality and Perceived Value: An integrative model’, Journal of marketing Management, vol. 20, no. 7-8, pp. 897-917.
Consumer offerings vary in customer interaction functions to fulfill a different need or want of their target market. The way the consumer interacts with the offering is mostly based on what category of offering it falls under, because the process of a consumer buying a product out of convenience is highly different than one who buys an unsought product (after being convinced of its value, generally). The marketing required to sell these vastly different types of consumer offerings are also hugely varied in approach and expectation. The four accepted types of consumer offerings are convenience, unsought, specialty, and shopping.
Consumer Decision Making Process A key factor in successfully marketing new/existing products or implementing a product Extension is a thorough understanding of the motivation, learning, memory, and decision Processes that influence consumers purchasing behavior. Consumer purchasing behavior theories have found their way into managerial decision making to help companies more effectively develop and launch new products, segment the market, determine market entrance and in brand management. Therefore, a better understanding of how consumers decide what to purchase is critical to the success of a product. There are numerous theories and models describing the consumer purchasing decision process.
Many researches also maintain that the higher the brand awareness is, the higher perceived quality is (Monore, 1990; Dodds and Grewal, 1991; Wall, Liefeld, & Heslop, 1991; Lo, 2002; Lin, 2006 ). Kan (2002) further suggest that the higher the brand awareness is, the higher the consumers’ quality evaluation is. Besides, Aaker and Keller (1990) mentioned that a brand with high awareness and good image can promote brand loyalty to consumers, and the higher the brand awareness is, the higher brand trust and purchase intention are to consumers. Peng (2006) indicates that brand awareness has the greatest total effects on brand loyalty. When businesses develop a new products or a new market, they should promote their brand awareness in order to receive the best result because brand awareness is positively related to brand loyalty (Aaker & Keller, 1990; Peng, 2006; Wu, 2002; Chou, 2005). Chang and Wildt (1994) submit that value can facilitate loyalty. Parasuraman and Grewal (2000) propose that the more positive customer transaction perceptions are, the stronger customer loyalty is. Sirdeshmukh, Sigh and Sabol (2002) also deem that value will bring a positive influence toward customers. Wu (2007) identifies that the perception of consumers will increase or reduce brand loyalty. Judith and Richard (2002) further indicate that perceived quality and brand loyalty have a highly connection, they will positively influence purchase intention. Chi, Yeh and Chiou (2009) a new view and evidence to the study of brand loyalty that customer perceived quality will influence brand trust and brand affect, and further to influence brand attitude and purchase behavior. Thus, perceived quality and brand loyalty are positively correlated, and brand loyalty will increase if perceived quality
Firstly, consumers buy the products of which they believe that will offer them the highest value (Kotler & Keller, 2012). However, these consumers cannot know before purchase what a product is exactly going to offer them. Therefore, consumers have to rely on promises of the selling company. These promises are invariably more than the tangible products themselves, focusing on the intangible benefits attached to the product rather than its distinctive features. In other words, the company concentrates its marketing activities on the intangible value of the product. In that way the company is able to get customer appeal for its products, and differentiate from its competitors (Levitt, 1981). Logically, because the intangible value is the main focus point of companies and of consumers in their purchase decisions, value has to be pre...
3] Keller, K.L. (1993) Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing 57, 1–22.
Customer Perceived Value is the sum total of customer pre purchase (expectation of quality of product or service) or perception during usage of product or service (Comparison between expected perception and usage perception) and post purchase perception (perception of the customer towards product or service after usage) (Oyserman et al., 2002). Only if the sum total of the perception of the product or service is positive, a customer is said to be satisfied with the product
The basic concept of perceived quality takes into account both the extrinsic and intrinsic features of the product. Customers’ knowledge about the product or the brand and his past experiences with it are important decision variables.
Under globalization and rising competitiveness, it is becoming harder to affect a consumer’s attitude towards a product or brand, thus, there is a need to search for means of alternative influences. The aim of this report is to prove the relationship of a product and consumer attitude from the emotional perspective, applying the example of PEPSI, a cola brand. Consumers always find it difficult to explain why they believe some brands suggest strong negative feelings or why they are more attracted to one brand instead of another. Studies have proven that definite emotions towards certain products are usual to consumers and this can also be the reasons why they select a particular brand, along with the price of that brand as well as
In this essay I will be discussing the key factors that a firm should consider when setting the price of a product. I will examine what the most important factors are and how they contribute to the pricing of a product. Pricing of a product whether it is for a small business or a large business a pricing of a product is a very important element of any successful business. I believe that there are seven key points to pricing a product and I will explain them and analyse these below.