. LITERATURE REVIEW
2.1. The Theory of Consumption Values
The theory of the consumption values was first introduced by Sheth and Newman and Goss in
1991 and is abbreviated as SNG. The model is an advanced expanded version of the Howard-
Sheth model, which is a complicated explanatory model of consumer’s behaviors, consisted of four key dimensions namely data, conceptual structures, learning structures and outputs [5].
The model is so operational and easily functional that many researchers have made references to it during these years. Among others, references can be made to a study by Yonggui Wang (2004) in a number of China’s service-provider organizations, analyzing consumer 's behaviors and customer’s value in a comprehensive coherent framework
…show more content…
(1991) the functional value of an alternative is defined as:
"The perceived utility acquired from an alternative for functional, utilitarian, or physical performance. An alternative acquires functional value through the possession of salient functional, utilitarian, or physical attributes. Functional value is measured on a profile of choice attributes."
Katz (1960) developed the functional theory of attitudes. He identifies four attitudes based on the functional values:
1) Utilitarian function. The utilitarian function is related to the basic principles of reward and punishment. We develop some of our attitude toward products simply based on whether these products provide pleasure or pain.
2) Value-expressive function. Attitude that performs a value-expressive function expresses the consumers’ central values or self concept. A person forms a product attitude not because of its objective benefits, but because of what the product says about him or her as a person.
3) Ego-defensive function. Attitude formed to protect the person, either from external threats or internal feelings, perform an ego-defensive function. Example of this function is deodorant campaigns that stress the dire, embarrassing consequences of being caught with underarm odor in
…show more content…
Goods and services are frequently associated with emotional responses (e.g. the fear aroused while viewing horror movie). Emotional value is often associated with aesthetic alternatives (e.g. religion, causes). However, more tangible and seemingly utilitarian products also have emotional values. For example, some foods arouse feeling of comfort through their association with childhood experiences, and consumers are sometimes said to have "love affairs" with their
Task 5 According to the utility theory, consumers would change their spending pattern if the satisfaction they gain from the products or the price of products alter. For instance, initially a consumer may be allocating her spending between two products, X and Y such as: Marginal utility of X = Marginal utility of Y Price of X Price of Y 20 = 35
Utilitarianism is part of consequentialist theories which assess moral right and wrong in terms of the consequences of the actions. Utilitarianism places great importance on actions that produce or increase pleasure and reduce pain. In other words, utilitarianism advocates for happiness producing consequences. Ethical issues in marketing to children Adverts with exaggerated claims to mislead children Some marketers purposefully overstate the qualities or features of a particular product or service to mislead the children in believing that the product or service is exactly the way it has been advertised.
Within this critical literature review, the article which will be under analysis is “low- income families and coping through brands: Inclusion or stigma?” which was written by Kathy Hamilton in 2012. The article concentrates on the coping strategies used by single parents and low-income families to avoid stigmatisation and threats upon their social identities. Therefore, to avoid stigmatisation these low-income families may take part in conspicuous consumption where families may spend a lot of money on luxury goods to make themselves look better, which can give them a sense of economic power and acceptance within society. However, due to the rise of ‘chav’ culture surrounding single mothers, it can be much harder to move away from stigmatisation,
As a college student, I am always keeping myself updated with different new university policies because many policies are impacting my college life. Although many policies are impacting me in school, college tuition is the most important to me. The increase of college tuition at U.C and CSU will cause many problems for students. The school administration thinks that is the time to increase student tuition, but students will not benefit from the increase. Therefore, my paper will offer a utilitarian evaluation of the recent CSU and UC increase in tuition, it will show that said policy is unethical from a business and social standpoint.
Some of the biggest brands use this technique. For example, Coke uses Happiness, McDonalds uses Love, Kodak uses Nostalgia, Harley Davidson uses Rebellion, so on and so forth. Vance Packard, an American journalist suggested that people of eight emotional needs some of which PPK can leverage. " Emotional security need" which can be leveraged through happiness and "Love objects need" are two emotional needs that Vance Packard defined that can be used by
The context of the paper is discussion of why utilitarianism is consistently appealing. As Foot
Functionalism does not encourage people to take an active role in changing their social environment, even when such change may benefit them. Instead, functionalism sees active social change as undesirable because the various parts of society will compensate in a seemingly natural way for any problems that may arise. The data in the second table shows the top five reasons the population do not have health care coverage. 30% of the highest percentage of people did not have healthcare coverage because they couldn 't afford premiums. 1% of the lowest percentage of people did not have healthcare coverage because they 're healthy so they don 't need insurance.
Utilitarian is a regularizing moral hypothesis that place the locus of good and bad exclusively on the result, the end legitimize the mean. Solving and taking care of the issue is most important. All matters is just the final products if the final products is great then what you did was ethically right. Considering things are at stake for both stakeholder involved. Utilitarian principles sates that proper course action maximize happiness and treat other how you would wanted to be treated.
Although difficult to do, writing a compelling value proposition is a vital part of marketing a brand. Until leaders can state why their brand has value, how can they influence customer behavior with targeted marketing? One of the basic purposes of a value proposition is to determine the benefits their brand has for consumers. Another key aspect of a value proposition is linking the brand benefits to specific features of the brand. Leaders need to take the time to view their brand from the perspective of their targeted customer.
The main principle of utilitarianism is happiness. People who follow this theory strive to fulfill the “ultimate good”. The “ultimate good” is defined as ultimate pleasure with out any pain. It is said that the pleasure can be of any quantity and any quality, but pleasures that are weighted more important are put at a higher level than others that are below it. This ethical theory also states that if society would fully embrace utilitarianism then people would naturally realize their moral standing in the
The utilitarianism is common approach to make ethical decisions. The main point of this approach is that you have to make that decision which comes with the most utility. The utility in this approach can be described as „The good”, and the opposite of this is „the bad”. This means that in Computer Science you have to produce a computer programme or a hardware, which produces the largest amount of good , and during the producing phase, it makes the least amount of bad, for all who are affected: customers, employees, and even the enviroment. With the utilitarian viewpoint people can make right, and ethical decisions, for instance if you produce a programme which can make life easier for millions of people, you should not sell it for extremly
As per this theory the outcome of any action should minimize the pain and maximize the pleasure. The utilitarianism have two groups one is the Act utilitarian’s focun on the effects of individual actions (Such as Nathuram Godse’s assassination of Mahatma Gandhi) and another is rule utilitarian’s those focus on the effects of types of actions (such as killing or stealing) Utilitarians believe that the purpose of morality is to make life better by increasing the amount of good things (such as pleasure and happiness) in the world and decreasing the amount of bad things (such as pain and unhappiness). They reject moral codes or systems that consist of commands or taboos that are based on customs, traditions, or orders given by leaders
Utilitarianism is a teleological ethical theory based on the idea that an action is moral if it causes the greatest amount of happiness for the greatest number of people. The theory is concerned with predicted consequences or outcomes of a situation rather than focusing on what is done to get to the outcome. There are many forms of utilitarianism, having been introduced by Jeremy Bentham (act utilitarianism), and later being updated by scholars such as J.S. Mill (rule utilitarianism) and Peter Singer (preference utilitarianism). When referring to issues of business ethics, utilitarianism can allow companies to decide what to do in a given situation based on a simple calculation. Many people would agree that this idea of promoting goodness
(Jacoby, 1971; Jarvis & Wilcox, 1976). Dick and Basu (1994) propose that customer will be loyalty to the brand is the result of psychological processes and has behavioral manifestations. Therefore it should incorporate both attitudinal and behavioral. Satisfaction is recognized as an important element for loyalty in both the consumers and business marketing. Satisfaction with previous purchase experiences plays an important role in determining the future purchase behaviors particularly call as an effort-minimization strategy (Jones and Suh, 2000: Pritchard et al, 1999).
This is the comparison of the benefits offered by a company's product to its customers relative to the price it asks customers to pay. To do this, companies can influence the value proposition in one of two ways mainly. This can be done through long term brand building. They can also offer a relatively low cost to enhance value. Ultimately, the key is that customers perceive that the product's merits exceedingly justify its price.