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Theory of why we buy what we buy, Independence Among Values - Coggle…
Theory of why we buy what we buy
5 values influencing comsumer choice
2) Social Value: Utility derived from association with specific social groups or stereotypes. Examples: Selecting clothing or cars for the status they confer.
3) Emotional Value: Utility gained from emotional responses triggered by a product or service. Examples: Comfort foods tied to childhood memories or the thrill of a sports car.
1) Functional Value: Perceived utility from an alternative's functional or utilitarian performance.
4) Epistemic Value: Utility from curiosity, novelty, or desire for knowledge. Example: Trying new coffee for variety or visiting a new cultural destination.
Standardized questionare
1) Preliminary Data Collection
Conduct focus groups with target consumers.
Focus on the five consumption values.
Analyze transcripts to identify key concerns.
2) Questionnaire Development
Convert key responses into questionnaire items.
Add background questions.
Pretest for clarity and refinement.
3) Survey Administration
Use a large, representative sample.
Include users, nonusers, and competitors.
Choose methods based on goals and budget.
4) Data Analysis
Factor analysis: classify known groups (e.g., users vs. nonusers, brand A vs. brand B) based on consumption values
Discriminant analysis: identify underlying value dimensions from questionnaire responses
Independence Among Values
Addtitive contribution
1.1. Each value independently contributes to consumer choice, adding incrementally to the overall utility.
1.2. Consumers can trade off values, prioritizing the most relevant ones for their specific needs.
Trade-Offs in Value Maximization
While maximizing all five values is ideal, practical constraints often require accepting less of one value to gain more of another.
Example: A buyer may prioritize functional value (utility of the product) over social value (status) when purchasing a durable good.
Simultaneous Influence
Example: A first-time home buyer might experience:
Functional value: more space than an apartment
Social value: friends also buying home
Emotional value: security in home ownership
Epistemic value: novelty of the purchase process
Conditional value: preparing for family life