33:630:301 Lecture 3: Week 3 - Part 1 - 02_14_2019

• School: Rutgers University
• Department: Marketing
• Course: 33:630:301
• Professor: S Monga

Document Summary

Demonstrate that starbucks is better than all competitors using examples and comparisons but no actual statistical evidence. Postpurchase behavior, value in consumption or use. Feeling of post purchase psychological tension or anxiety that consumers may experience when faced with multiple attractive options. Customer is worth over 60 years. Present value of future cash flows from a customer relationship. = sales revenue - (variable costs + other customer acquisition cost) Clv can be increased by increasing the retention rate. Clv can be increased by increasing margin () This can be done by increasing sales revenue or decreasing costs. Purchase decision process - consumer involvement and problem solving. Personal, social, and economic significance of the purchase to the. High high consumer involvement low. Extended problem solving, limited problem solving, routine problem solving (spectrum in order from high to low) Time of day, self-control declines over course of the day. Hierarchy of needs (top of pyramid to bottom.