Consumer value

{{Short description|Subjective evaluation of a product}}{{marketing}} '''Consumer value''' is used to describe a consumer's strong relative preference for certain subjectively evaluated product or service attributes.<ref>Holbrook, Morris B. Consumer value: a framework for analysis and research. Psychology Press, 1999.</ref><ref>Sánchez-Fernández, Raquel, M. Angeles Iniesta-Bonillo, and Morris B. Holbrook. "The conceptualisation and measurement of consumer value in services." International Journal of Market Research 51, no. 1 (2009): 93–113.</ref><ref>Holbrook, Morris B. "Special session summary customer value C a framework for analysis and research." NA-Advances in Consumer Research Volume 23 (1996).</ref><ref>Thompson, Craig J., and Maura Troester. "Consumer value systems in the age of postmodern fragmentation: The case of the natural health microculture." Journal of consumer research 28, no. 4 (2002): 550–571.</ref>

The construct of consumer value has widely been considered to play a significant role in the success, competitive advantage and long-term success of a business, and is the basis of all marketing activities.<ref name=":0">Morar, Doriana. (2013). An overview of the consumer value literature – perceived value, desired value. In ''International Conference "Marketing – from information to decision" 6th Edition 2013,'' Cluj-Napoca, Romania: ResearchGate. Retrieved from https://www.researchgate.net/publication/271585009_An_overview_of_the_consumer_value_literature_-_perceived_value_desired_value</ref> Research has shown that the most important factor of repurchase intentions is consumer value, where value stems from positive consumer shopping experiences from retailers.<ref name=":0" />

The emergence of consumer value research began in the 1980s, with the 1990s and 2000s being a time of clear growth and a generation of key insights for marketing academics.<ref name=":1">Zeithaml, V. A., Verleye, K., Hatak, I., Koller, M., & Zauner, A. (2020). Three Decades of Customer Value Research: Paradigmatic Roots and Future Research Avenues. ''Journal of Service Research'', ''23''(4), 409–432.</ref> The definition of consumer value has long remained unclear due to the nature of the construct, its characteristics and its conceptualisation.<ref name=":2">Gallarza, M. G., Arteaga, F., Del Chiappa, G., Gil-Saura, I., & Holbrook, M. B. (2017). "A multidimensional service-value scale based on Holbrook's typology of customer value". ''Journal of Service Management'', ''28''(4), 724–762. {{doi|10.1108/josm-06-2016-0166}}.</ref>

There are various definitions of consumer value in literature, however, an overall recurring theme is that consumer value is a trade-off between a consumer's 'benefits and sacrifices' when making a consumption choice.<ref name=":0" /> In academic literature, researchers have widely considered Morris Holbrook's definition of value as a core element of a consumer's consumption experience, to be a pioneer in consumer value research.<ref name=":3">Holbrook, M.B. (1999). ''Consumer Value: A Framework for Analysis and Research (Routledge Interpretive Market Research)'' (1st ed.). Abingdon, United Kingdom: Routledge.</ref><ref name=":4">Holbrook, M.B. and Corfman, K.P. (1985), “Quality and value in the consumption experience: phaedrus rides again”, in Jacoby, J. and Olson, J.C. (Eds), Perceived Quality: How Consumers view Stores and Merchandise, Health and Company, Lexington, MA, pp. 31–57.</ref> Holbrook's typology of values include efficiency, excellence, status, esteem, play, aesthetics, ethics and spirituality. Valerie Zeithaml's value conceptualisation as an individual's assessment of a product's utility based on what they have given and what they have received, has also been used by multiple researchers since.<ref name=":5">Zeithaml, V. A. (1988). "Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence". ''Journal of Marketing'', ''52''(3), 2. {{doi|10.2307/1251446}}.</ref>

Consumer value literature has seen more multi-dimensional approaches than one-dimensional approaches, however researchers agree that two dimensions can be distinguished from them, where one is functional in nature, and the other is emotional in nature.<ref name=":0" /> Researchers have developed their own scales and approaches to the consumer value conceptualisation, in which as many as eight dimensions have been seen in literature.<ref name=":6" />

== Origins == The origins of research, the interest and the attention to the consumer value construct can be traced back to the 1980s.<ref name=":1" /> During the 1990s and 2000s, the conceptualisation and measurement of the construct expanded rapidly in the field of management, organisation and marketing literatures.<ref name=":1" /> Many insights, questions and contributions joined the current complexity of understanding consumer value.<ref name=":1" /> In the past decade, researchers have attempted to review the existing literature surrounding consumer value by studying the construct in merely business contexts, while most studied consumer contexts.<ref name=":1" /> Since the 2000s, more recent studies have moved away from approaching the construct as a concept, but rather, a measurement, which explores the relationships between value and other variables.<ref name=":2" />

== Definitions == Despite consumer value being regarded as a core marketing concept, researchers have widely agreed on the inconsistency of its definition, its nature, its characteristics and its conceptualisation.<ref name=":2" /> The definition of consumer value has been identified to differ based on the perspective and the context.<ref name=":6">Tasci, A. D. (2016). "A critical review of consumer value and its complex relationships in the consumer-based brand equity network". ''Journal of Destination Marketing & Management'', ''5''(3), 171–191. {{doi|10.1016/j.jdmm.2015.12.010}}.</ref> Consumer value conceptualisation has been considered "broad as it is extensive and is represented as much in the field of economics and philosophy as it is in the domain of business".<ref>Woodall, T. (2003). "Conceptualising 'value for the customer': An attributional, structural and dispositional analysis". ''Academy of Marketing Science Review, 2003'', 1. {{ProQuest|200800200}}.</ref> Despite different expressions, however, a commonality between these definitions is that consumer value is the gains and losses perceived by a consumer, in which these include price, utility, quality, benefits and costs.<ref name=":6" />

Table 1 outlines the differing definitions of consumer value by various academic researchers over time. {| class="wikitable" |+Table 1. Different definitions of Consumer value<ref name=":0" /><ref name=":6" /> !Author(s) !Definition |- |Holbrook and Corfman<ref name=":4" /> |The characterisation of an individual's experience based on their interaction with a specific object, thing, or event. |- |Holbrook<ref>Holbrook, M.B. (1986). ''Emotion in the consumption experience: Toward a new model of the human consumer (R.A. Peterson)'' (Ed.), ''The role of affect in consumer behavior: emerging theories and applications.'' Heath, Lexington, MA (1986), pp.17–52.</ref> |Value is the outcome of an individual's overall consumption experience. |- |Zeithaml<ref name=":5" /> |'Value is price' and 'value is what I get for what I give'. A consumer perceives value as what they have received (i.e., an assessment of the overall utility of a product) and what they have given for the product (e.g., price). |- |Sheth, Newman and Gross<ref name=":8">Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). "Why we buy what we buy: A theory of consumption values". ''Journal of Business Research'', ''22''(2), 159–170. {{doi|10.1016/0148-2963(91)90050-8}}.</ref> |A consumer makes a choice based on various consumption values, including functional, social, emotional, epistemic and conditional value. These consumption values are independent and each value acts as different contributions in any situation a consumer must make a choice. |- |Babin, Darden and Griffen<ref name=":9">Babin, B. J., Darden, W. R., & Griffin, M. (1994). "Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value". ''Journal of Consumer Research'', ''20''(4), 644. {{doi|10.1086/209376}}.</ref> |Value is related to hedonic responses and other more tangible consequences. |- |Maklan and Knox<ref>Maklan, S., & Knox, S. (1997). "Reinventing the brand: bridging the gap between customer and brand value". ''Journal of Product & Brand Management'', ''6''(2), 119–129. {{doi|10.1108/10610429710175655}}.</ref> |Value is the difference between a consumer's perception of having or using a product or a service, and the total costs of its purchase. |- |Woodruff<ref name=":10">Woodruff, R. B. (1997). "Customer value: The next source for competitive advantage". ''Journal of the Academy of Marketing Science'', ''25''(2), 139–153. {{doi|10.1007/bf02894350}}.</ref> |Value is what a consumer prefers and the act of evaluating the product's attributes, performance and consequences, and whether they successfully fulfil the customer's goals and purposes in situations they require them. |- |Day;<ref>Day, G.S. (1999). Market Driven Strategy. Processes for Creating Value, 2nd ed., The Free Press, New York, NY.</ref> Lai<ref>Lai, A.W. (1995). Consumer value, product benefits and customer value: a consumption behavior approach. Advances in Consumer Research, 22: 381–388.</ref> |Value is the difference between a consumer's perceived benefits and cost. |}

== Notable studies ==

=== Holbrook's Typology of Consumer value === Among the numerous studies surrounding consumer value, Holbrook's<ref name=":3" /><ref name=":4" /> was considered to be a pioneer of the value construct as he defined it to be a core element of a consumer's consumption experience.<ref name=":2" /> His approach was consistently refined over two decades, fundamentally leading to his development of a typology of value.<ref name=":2" /> This typology has been noted as "the most comprehensive approach to the value construct, because it captures more potential sources of value than do other conceptualisations".<ref name=":2" /> The value conceptualisations that Holbrook identified included economic, social, hedonic, and altruistic, in which these were further separated into eight value types: efficiency, excellence, status, esteem, play, aesthetics, ethics, and spirituality.<ref name=":3" /> These value types were considered either self-oriented (i.e. to be primarily concerned with oneself) or other-oriented (i.e. taking into account the feelings and needs of others).<ref name=":3" /> 353x353px|An overview of Holbrook's Typology of Consumer Value.|thumb

==== Efficiency ==== Efficiency is the result of an individual actively using a product or consuming an experience to accomplish some kind of purpose.<ref name=":7">Svee, E.O., Giannoulis, C., & Zdravkovic, J. Modeling Business Strategy: A Consumer Value Perspective. 4th Practice of Enterprise Modeling (PoEM), Nov 2011, Oslo, Norway. pp.67–81, 10.1007/978-3-642-24849-8_6ff. hal-01572390</ref> Efficiency is often measured as “a ratio of outputs to inputs.”<ref name=":7" /> An example of this is the efficiency of a car, where an appropriate ratio is the distance the car can travel against the amount of fuel it uses.<ref name=":7" /> Efficiency can also be measured as convenience, such as how much use can be derived from a product or service versus the time or energy used to source them.<ref name=":7" />

==== Excellence ==== Excellence refers to an individual's admiration or appreciation of an object due to its quality, its ability to achieve a goal or to carry out a particular function.<ref name=":7" /> For example, a Ferrari may be a good choice for a high-quality car, however, it would not be a good choice for a delivery truck.<ref name=":7" />

==== Status ==== Status refers to an individual's consumption of a product or an experience to communicate a particular type of image or to convey an impression that portrays success.<ref name=":7" />

==== Esteem ==== Status and esteem play hand in hand with one another, with esteem seen as a reaction to status.<ref name=":7" /> Esteem is the enhancement of one's reputation and their public image through the ownership of certain possessions.<ref name=":7" />

==== Play ==== Play is the consumption of a product or an experience purely for one's own enjoyment and typically involves having fun.<ref name=":7" /> It is actively sought by individuals and it is a self-oriented experience.<ref name=":7" />

==== Aesthetics ==== Aesthetics is also a self-oriented value; it refers to the intrinsic appreciation of a consumption experience, and the enjoyment of it for one's own sake without needing any external justification.<ref name=":7" />

==== Ethics ==== Ethics is a self-oriented value and involves performing an act for others' sake, taking into account how it may affect them or their reaction to it.<ref name=":7" /> For example, individuals donating blood do not do it for their own selfish gains – they are often motivated by selflessness instead.<ref name=":7" />

==== Spirituality ==== Spirituality is an "intrinsically motivated acceptance, adoption, appreciation, admiration, or adoration of an “Other" where this "Other" may constitute some Divine Power, or some otherwise inaccessible Inner Being."<ref name=":7" /> An example of this is people donating money to churches to feel closer to an "Other."<ref name=":7" />

=== Zeithaml's Consumer Perceptions of Price, Quality and Value === Another study on consumer value that has been widely accepted by researchers was the works of Zeithaml in 1988,<ref name=":5" /> where four common uses of value were identified:

# 'Value is price' # 'What I get for what I give' – value is the trade-off between benefits and costs # Value is the trade-off between the price of a product and its perceived quality # Value is the qualitative, quantitative, objective and subjective elements of a customer's overall exchange experience

Zeithaml defines perceived value as the overall customer experience, and as the compromise between either benefits and sacrifices or between quality and sacrifices, in which the sacrifices can be split into financial and psychological.<ref name=":0" />

Zeithaml's cost-benefit ratio-oriented definition has since popularised and influenced many researchers to study the conceptualisation of consumer value as a "get-versus-give" trade-off.<ref name=":6" /><ref>Gallarza, M. G., Gil-Saura, I., & Holbrook, M. B. (2011). "The value of value: Further excursions on the meaning and role of customer value". ''Journal of Consumer Behaviour'', ''10''(4), 179–191. {{doi|10.1002/cb.328}}.</ref>

== Dimensions of consumer value research == Despite the occasional use of a one-dimensional approach to consumer value research, most academics approached their studies by including multiple dimensions to capture the numerous characteristics of product consumption.<ref name=":6" /> Researchers have widely agreed on two distinguishable dimensions from literature.<ref name=":0" /> The first is functional in nature, while the other is emotional or affective in nature.<ref name=":0" />

Researchers such as Holbrook,<ref name=":3" /> Lapierre;<ref>Lapierre, J. (2000). "Customer‐perceived value in industrial contexts". ''Journal of Business & Industrial Marketing'', ''15''(2/3), 122–145. {{doi|10.1108/08858620010316831}}.</ref> Pura;<ref>Pura, M. (2005). "Linking perceived value and loyalty in location‐based mobile services". ''Managing Service Quality: An International Journal'', ''15''(6), 509–538. {{doi|10.1108/09604520510634005}}.</ref> Sanchez, Callarisa, Rodriguez and Moliner<ref name=":11">Sánchez, J., Callarisa, L., Rodríguez, R. M., & Moliner, M. A. (2006). "Perceived value of the purchase of a tourism product". ''Tourism Management'', ''27''(3), 394–409. {{doi|10.1016/j.tourman.2004.11.007}}.</ref> followed a multi-dimensional approach.<ref name=":6" /> Some researchers including Holbrook and Corfman<ref name=":4" /> and Hirschman and Holbrook<ref>Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic Consumption: Emerging Concepts, Methods and Propositions. ''Journal of Marketing'', ''46''(3), 92. {{doi|10.2307/1251707}}.</ref> studied consumer value through approaches like social, socio-psychological and experiential.<ref name=":6" /> Several additional dimensions in literature emerged thereafter.<ref name=":6" /> Consumer value research has seen as many as eight dimensions; for example, Gallarza and Saura's 2006 study.<ref name=":6" />

As inspired by Zeithaml,<ref name=":5" /> another popular approach in consumer value literature was the division of the concept as two measures, with the first being benefits (economic, social and relational), and the second being consumers' sacrifices (price, time, effort, risks and opportunities).<ref name=":0" /> Other researchers also identified a dimension known as 'transaction value', which focused more on the psychological satisfaction or pleasure that consumers would receive from an attractive price deal.<ref name=":6" />

A further example of a multi-dimensional approach to consumer value was Sheth's 1991 identification of five dimensions to the concept, including functional, social, emotional, epistemic and conditional.<ref name=":0" /> More specifically, functional values were defined as the consumer's perception of the functional and utilitarian attributes or benefits of a product or service, such as its performance, price and efficiency.<ref name=":12">Zhang, J., & Mao, E. (2012). "What's Around Me?" ''International Journal of E-Business Research'', ''8''(3), 33–49. {{doi|10.4018/jebr.2012070103}}.</ref> Social values entailed how consumers perceived their product or service in terms of its association with distinctive social groups.<ref name=":12" /> Emotional values detailed the consumer's feelings, affect or mood about their consumption experience.<ref name=":0" /> Epistemic values were about consumers needing novelty, satisfying curiosity and an eagerness for knowledge.<ref name=":12" /> Conditional values consisted of the perceived utility gained from a product or a service in relation to situational or contextual factors, such as using sunscreen lotion during summer when going outside.<ref name=":0" /><ref name=":12" />

In a following study conducted in 2001, Sweeney and Soutar reduced Sheth's original five dimensions into three.<ref name=":0" /> These included functional value, social value and emotional value, in which they were then later elaborated into a scale known as the PERVAL scale.<ref name=":0" /> The PERVAL scale consisted of 19 items which were used in retail purchase environments to determine the specific consumption values that drove consumer purchase attitudes and behaviours.<ref name=":0" /> Petrick adapted Sweeney and Soutar's 2002 study with the creation of the SERV-RERVAL scale, which consisted of quality, monetary price, behavioural price, emotional and reputation.<ref name=":0" /> Also following Sweeney and Soutar, researchers Sanchez, Callarisa, Rodriguez and Moliner developed a post-purchase perceived value scale called GLOVAL in 2006, which was designed specifically for the tourism industry.<ref name=":0" /> The GLOVAL scale composed of six dimensions, where four of them related to the dimensions of functional value and the last two related to social and emotional value.<ref name=":0" />

Table 2 outlines the differing dimensions of consumer value by various academic researchers over time. {| class="wikitable" |+Table 2. Different dimensions of Consumer value<ref name=":0" /><ref name=":6" /> !Author(s) !Dimensions |- |Holbrook and Corfman<ref name=":4" /> |Hedonic value, utilitarian value<ref name=":4" /> |- |Monroe and Chapman<ref>Monroe, K.B. and Chapman, J.D. (1987). Framing Effects on Buyers' Subjective Product Evaluations, Advances in Consumer Research, 14: 193–197.</ref> |Acquisition value, transaction value |- |Sheth, Newman and Gross<ref name=":8" /> |Functional, emotional, conditional, social, epistemic |- |Nilson<ref>Nilson, T.H. (1993). "Value-added marketing: Marketing management for superior results". ''Long Range Planning'', ''26''(3), 141. {{doi|10.1016/0024-6301(93)90036-f}}.</ref> |Tangibles values, intangibles values |- |Babin, Darden and Griffin<ref name=":9" /> |Hedonic value, utilitarian value |- |Litten, Kotler and Fox<ref>Litten, L., Kotler, P., & Fox, K. F. A. (1987). "Strategic Marketing for Educational Institutions". ''The Journal of Higher Education'', ''58''(4), 479. {{doi|10.2307/1981323}}.</ref> |Expected value, received value |- |Lovelock<ref>Lovelock, C.H. (1996). Services Marketing, 3rd ed., Prentice-Hall, Englewood Cliffs, NJ</ref> |Pre-use value, post-used value |- |Zeithaml, Berry and Parasuraman<ref>Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). "The Behavioral Consequences of Service Quality". ''Journal of Marketing'', ''60''(2), 31. {{doi|10.2307/1251929}}.</ref> |Benefits (quality, satisfaction and specific benefits), costs (money, time and effort) |- |Woodruff<ref name=":10" /> |Emotional or intrinsic value, functional or extrinsic value, logical or value for money |- |Grönroos<ref>{{Cite journal |last=Grönroos |first=Christian |author-link=Christian Grönroos |date=1994-03-01 |title=From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing |url=https://www.emerald.com/insight/content/doi/10.1108/00251749410054774/full/html |journal=Management Decision |language=en |volume=32 |issue=2 |pages=4–20 |doi=10.1108/00251749410054774 |issn=0025-1747|hdl=11323/385 |hdl-access=free |url-access=subscription }}</ref> |Functional value, emotional value |- |Grewal, Monroe and Krishnan<ref>Grewal, D., Monroe, K. B., & Krishnan, R. (1998). "The Effects of Price-Comparison Advertising on Buyers' Perceptions of Acquisition Value, Transaction Value, and Behavioral Intentions". ''Journal of Marketing'', ''62''(2), 46–59. {{doi|10.1177/002224299806200204}}.</ref> |Quality, price, acquisition, transaction |- |Holbrook<ref name=":3" /> |Efficiency, excellence, play, aesthetics, status, esteem, ethics, spirituality |- |Oliver<ref>Oliver, R. L. (1999). Value as Excellence in the Consumption Experience. In Morris B. Holbrook (Eds.), Consumer Value: A Framework for Analysis and Research, (pp. 43–62). London: Routledge.</ref> |Consumption value, extended value |- |Parasuraman and Grewal<ref>Parasuraman, A., & Grewal, D. (2000). "The Impact of Technology on the Quality-Value-Loyalty Chain: A Research Agenda". ''Journal of the Academy of Marketing Science'', ''28''(1), 168–174. {{doi|10.1177/0092070300281015}}.</ref> |Acquisition value, transaction value, value "in-use", redemption value |- |Sweeney and Soutar<ref>Sweeney, J. C., & Soutar, G. N. (2001). "Consumer perceived value: The development of a multiple item scale". ''Journal of Retailing'', ''77''(2), 203–220. {{doi|10.1016/s0022-4359(01)00041-0}}.</ref> |Functional – quality, functional – price, emotional, special (PERVAL) |- |Petrick<ref>Petrick, J. F. (2002). "Development of a Multi-Dimensional Scale for Measuring the Perceived Value of a Service". ''Journal of Leisure Research'', ''34''(2), 119–134. {{doi|10.1080/00222216.2002.11949965}}.</ref> |Quality, monetary price, behavioural price, emotional, reputation (SERVQUAL) |- |Mathwick, Malhotra and Rigdon<ref>Mathwick, C., Malhotra, N. K., & Rigdon, E. (2002). "The effect of dynamic retail experiences on experiential perceptions of value: an internet and catalog comparison". ''Journal of Retailing'', ''78''(1), 51–60. {{doi|10.1016/s0022-4359(01)00066-5}}.</ref> |Active values (efficiency; economic value and enjoyment); Reactive values (visual attraction; entertainment value and service excellence) |- |Sanchez, Callarisa, Rodriguez and Moliner<ref name=":11" /> |Functional value, emotional value, social value (GLOVAL) |- |Lee, Yoon and Lee<ref>Lee, C. K., Yoon, Y. S., & Lee, S. K. (2007). "Investigating the relationships among perceived value, satisfaction, and recommendations: The case of the Korean DMZ". ''Tourism Management'', ''28''(1), 204–214. {{doi|10.1016/j.tourman.2005.12.017}}.</ref> |Functional value, emotional value, overall value |- |Wu and Liang<ref>Wu, C. H. J., & Liang, R. D. (2009). "Effect of experiential value on customer satisfaction with service encounters in luxury-hotel restaurants". ''International Journal of Hospitality Management'', ''28''(4), 586–593. {{doi|10.1016/j.ijhm.2009.03.008}}.</ref> |Experiential value (hedonic consumption paradigm): Consumer return on investment, Excellent service, Aesthetics |}

== References == <references />

Category:Marketing research Category:Consumer theory