1) Describe the Consumer Value Framework (CVF), including its basic components.

2) Define consumer value, and compare and contrast utilitarian value and hedonic value. Describe two situations--one in which you received utilitarian value and the other in which you experienced hedonic value. Which made you more satisfied?

Answer:

1.

The consumer value framework (CVF) represents consumer behavior theory illustrating factors that shape consumption-related behaviors and ultimately determine the value associated with consumption. It involves a lot of decision making, both internal and external.

2.

The four types of value include: functional value, monetary value, social value, and psychological value. The sources of value are not equally important to all consumers. How important a value is, depends on the consumer and the purchase. Values should always be defined through the "eyes" of the consumer.

Functional Value: This form of value is what an offer does; it is the answer that an offer gives to the consumer.

Monetary Value: This is where the function of the price paid is relative to an offering's perceived worth. This value necessitates a trade-off between other values and monetary expenses.

Social Value: The amount to which owning a product or partaking in a service helps the consumer to interact with others.

Psychological Value: The amount to which a product allows consumers to express themselves or feel better.

Value is an ethereal concept. It can refer to both the cost of an item and the benefits it provides. Consumer value, in more technical words, refers to how much a product or service is worth to a consumer in comparison to the alternatives. The consumer perceives that she receives benefits in exchange for the money she pays, which is how worth is defined. Consumer value is also linked to the qualities of satisfaction and loyalty. Satisfaction is a factor that influences recurrent purchases from the same company. Customers become loyal when they are consistently satisfied with the company's products, sales experience, and basic beliefs.

Utilitarian value is Derived from a product that helps the consumer solve problems and accomplish tasks that are a part of being a consumer while Hedonic value is The immediate gratification that comes from experiencing some activity. Hedonic value is an end in and of itself, and utilitarian value is a means to and end.  Hedonic is emotional, utilitarian is not.

For an hedonic value i bought a designer watch that was very classy.  For an utilitarian value i bought a LG Tv.

I was more satisfied for a utilitarian value. Though its not  classy, its usefulness, practicality, functionality, and fulfillment of basic needs says it all.

Reference

Holbrook, M. B. (Ed.). (1999). Consumer value: a framework for analysis and research. Psychology Press.

Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers' repeat purchase intentions in B2C e?commerce: the roles of utilitarian value, hedonic value and perceived risk. Information Systems Journal, 24(1), 85-114.