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In this essay we will discuss the statement: “In a prosperous society, value is predominantly of an intangible nature”. Value is “the sum of the tangible and intangible benefits and costs to customers” (Kotler & Keller, 2012). The question is however if the tangible or intangible benefits and costs are influencing the value of a product the most. This essay will evince that value is mainly of tangible nature.
According to the customer value triad theory by Earl Naumann, “value is a combination of quality, service and price” (Naumann, 1995). In this case quality could be defined as performance quality, the objective quality of a product (Kotler & Keller, 2012). A product with high performance quality, increases the value of a product. The value of a product is furthermore positively influenced by the service that is delivered (Kotler & Keller, 2012). The price however, can both positively and negatively influence the value of a product. A high price will in most cases decrease the value, but for some exclusive and luxury goods, a high price increases the value. The exclusivity, which is of intangible nature, is than one of the most important determinants of the value of the product. For most normal goods however, the objective quality is the prime determinant of the value. Although intangible benefits can be important in determining the value of a product, in most cases it is still the tangible benefits and costs, the objective quality and the price.
Research on the consumer behavior of women in Taiwan, while purchasing cosmetics, has shown that the main value drivers differ per type of consumer and per lifestyle (Chiang & Yu, 2010). Whether it is the tangible or the intangible part of a product that predominantly determines the ...
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...rted by the research that was done in the Hsinchu area in Taiwan (Chiang & Yu, 2010). Intangible items influence the value, but tangible items determine it. Consequently, we reject the statement that in a prosperous society, value is predominantly of intangible nature. It is important, but not the main determinant of value.
Works Cited
Chiang, C.-T., & Yu, W.-C. (2010). Research of Female Consumer Behavior in Cosmetics Market Case Study of Female Consumers in Hsinchu Area Taiwan. iBusiness, 2, 348-353.
Kotler, J., & Keller, K. (2012). A framework for marketing management. Essex: Pearson Education Ltd.
Naumann, E. (1995). Creating Customer value: The Path to Sustainable Competitive Advantage. Cincinatti: Thomson Executive Press.
Richards, K., & Jones, E. (2008). Customer relationship management: finding value drivers. Industrial Marketing Management, 37, 120-130.
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
The transition to modern consumerism involved not just the introduction of responsible product formulation, but fundamental transformations of social behavior. Women were at the heart of this development in the cosmetic industry, and we will consider the contributions of two of them: Annie Turnbo Malone and Madame C. J. Walker. These women and their contemporaries paved the way for Estee Lauder and Mary Kay Ash in our time.
Consumers become more interested in what brand they buy, and that what they want does not reflect their needs. While there are different products having the same features, people are still giving attention to the brands’ name. When people go shopping at the mall, they do care how the stores present their commodities, which brands use to target their consumers, especially women, and teenagers because they spend more time at the mall, so they are more likely to spend money on useless features’ commodities. Shopping at home, the salesperson explains the features of the product so that another will offer to buy it. Also, at home is the easiest way to buy useless
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.
Customer value is defined as "the perceived benefit of a product, used by customers to determine whether or not to buy the product" (Lussier, 2006). I do believe that most customer's focus on creating customer value. It is an aspect needed in order to sell anything. A customer would not buy something if she or he did not see the benefit in buying it, therefore, organizations strive to create customer value because they need the customer to see a benefit and to buy the product.
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
Jobber,D & Ellis-Chadwick, F (2012). Principles and Practices Of Marketing. 7th ed. : McGraw Hill Higher Education. p19-21 & 352-354.
Proctor and Gamble has been expanding its markets to Brazil, Russia, India and China. Expanding into these countries has increased their purchasing power and raised the demand for their products and fragrances. Once Proctor and Gamble expands into even more countries, their market share will continue to grow significantly. Outline of Consumer Behavior and Perceptions
After studying the cosmetic market we can identify a series of needs in this market:
This report analyzes the cosmetics retail industry in Hong Kong. There are many large-scale specialty cosmetics chains that are well developed in this market, such as Sasa, Bonjour, Colourmix, Aster and Angel, which are taking the lead. They mainly offer a wide range of international branded products and private label products to cater for customers’ special beauty needs, like make-up, fragrance, skincare items. With many dominant firms and a slowing growth in demand, the industry structure is being identified as mature.
Core customer value is the goods and services which the customers are buying at the time (Lucas, 2014). When making the buying decision, most of the consumers also think will there be any benefit after buying the products. On the other hand, we can say that customer value is the difference between benefits and cost (McLaughlin, N.D.). Normally, customers always like to choose to buy the products which have higher customer value.
Consumer behaviour is defined as the behaviour that consumers undertake in seeking, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their personal needs (Nayeem 2012). Different consumer may have different choices in purchase that is dependent on various influences. High involvement purchase sets the best example of engaging in consumer behaviour in various aspects as complex buying behaviour occurs when the consumer is highly involved with the purchase and when there are significant differences between brands. This behaviour can be associated with the purchase of a something significant in value and meaning to consumer which could be risky (Tanner 2012). High involvement purchase could be deduced from both emotional and rational perspective. Evidently, there are various dimensions and avenues to high involvement purchase and thus this essay to focus on that.This essay will analyse the behaviour of a consumer who is an international Chinese student who is involved in a high involvement purchase of Chinese New Year gifts. Meanwhile, the influences of purchase situation, decision making process, internal & external influences on the student’s selection between different brands of lanolin cream will also be further analyzed in this essay.
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to
In the past businesses took their customers for granted, because at that time the customers were not aware of the various variety of products available in the market nor had alternative source of supply to fulfil their demands. But today there is a transformation of how the customer purchase their products, there is some sort of change and expectations from consumer end regarding the product which they consume. They are very particular about the quality and value of purchase
One caution about customer value: greater customer value does not necessarily equal greater customer satisfaction. Customer value is defined as the difference (or surplus) between benefits and costs; it is a level of return for customer costs. From a cognitive perspective, according to expectation theory, satisfaction is the result of a comparison between what actually occurs and what is expected. Hence the customers' buying satisfaction depends on both their perceived value of the purchase and their knowledge of what a fair level of buying value should be. In short, customers will feel satisfied to the extent that the perceived value of their buying exceeds the standard they hold. From this point of view, exceeding value is the key for customer satisfaction, not customer value per se (a surplus value).