Choosing a Frame of Reference
Consumers determine the value of an offering relative to a reference point used to assess its benefits and costs. An offering can be viewed as attractive in comparison to an inferior offering, but the same offering can be perceived as unattractive when compared to a superior offering. Therefore, a frame of reference can serve as a benchmark against which customers can evaluate the benefits of a company’s offering.
Given the fact that consumers naturally construct frames of reference to evaluate the available options, a skilled marketer can design these frames of reference in a way that highlights the value of the offering. Decisions about the frame of reference are closely linked to target market decisions. Deciding ...
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