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Purpose of Essay: Example on how marketing draws on consumer behavior
Background:
1. Customer Perceived Value (CPV) - is the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others. Thus, when comparing two products (or more), the customer will buy the product that has a higher CPV.
2. Razor and Blade business model (R&B Business Model) - The razor and blades business model is a marketing model wherein one item is sold at a low price in order to increase sales of a complementary good, such as consumable supplies, over a long period of time. For example, inkjet printers can be sold at low profit margin, as they require continuous purchasing of ink cartridges, which are sold at high profit margin.
Task: Explain how the Razor and Blade marketing model draws on Customer Perceived Value or/and any other consumer behavior model that was discussed.
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