MKT1002 Consumer Behaviour – Assignment 1

Valuing a Service Experience

Assessment Overview

Unit code: MKT1002
Unit name: Consumer Behaviour
Assessment: Assignment 1 – Valuing a Service Experience
Weighting: 20 percent of total course grade
Length: Maximum 1,200 words or 10 PowerPoint slides plus references
Format: Individual assignment, visual and written communication in Word or PowerPoint
Focus: Value in the exchange for a branded service where you are a regular client

Purpose of the Assessment

This task develops your ability to analyse consumer value from the client perspective and to communicate those insights to management in a way that can inform strategy. You must apply key consumer behaviour concepts including value in the exchange, decision-making perspectives, perceived risk and involvement, and atmospherics to a real service experience that you personally use regularly. The assessment also builds self-awareness by requiring you to reflect on your own behaviour as a member of the target audience for the chosen brand.

Service Experience and Topic Selection

Select one branded service that you personally consume at least twice per month and preferably every week. You must be a current and regular client and therefore part of the brand target market.

Choose one topic only from the following options:

• Gym membership and regular attendance such as Snap Fitness or Anytime Fitness

• Playing member of a sporting club such as a golf club or local football club

• Regular at a favourite cinema such as Event Cinemas or Hoyts

• Regular at a favourite restaurant such as Grill’d or Nando’s

• Regular at a favourite massage or beauty spa

• University education, either online or on-campus student experience for your institution

The service must be clearly branded with an identifiable brand name and logo. You analyse one brand only.

Audience and Communication Style

• Your audience is the CEO or management team of the chosen brand.

• Write in second person or third person as if you are advising management about their target audience, which is you.

• Use active voice and concise, persuasive language consistent with professional marketing communication.

Assignment Structure and Word Allocation

Design your assignment using the following structure and approximate word counts.

1. Title Page

The title page is not counted in the word limit.

• Provide a catching title of no more than eight words that includes the brand and service.

• Include your full name and student ID.

• State the unit code MKT1002, assessment title and submission date.

2. Introduction (approximately 100 words)

• Introduce the service category and the specific brand.

• Briefly describe how often and in what way you use the service.

• Any background or history of the brand must be brief and properly referenced using Harvard AGPS style.

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3. Value Equation (approximately 300 words)

• Present a clear customer value equation for your experience with the brand.

Identify and explain:

• Benefits: utilitarian or functional benefits, hedonic or experiential benefits, social benefits and any other relevant benefits.

• Costs: monetary cost, time cost, effort cost, psychological cost and other perceived sacrifices.

Clearly differentiate and categorise benefits and costs, ideally using a labelled diagram or table. Explain how these benefits and costs combine to create overall perceived value for you as the target customer.

4. Decision-Making Perspectives (approximately 250 words)

• Identify which decision-making perspectives best describe how you chose and continue to use the service such as rational, experiential or behavioural and habitual perspectives.

• Discuss your initial decision and whether it involved extended or limited problem solving.

• Discuss your subsequent decisions and whether they reflect habit or brand loyalty.

• You may use a simple diagram or table to map your decision steps and then explain it in text.

5. Risk and Involvement (approximately 200 words)

• Define perceived risk and involvement with references to consumer behaviour literature.

• Identify which types of risk you experienced such as financial, performance, social, psychological, physical or time risk and explain the extent of each.

• Explain your level of involvement with the service and why it is low, moderate or high, referring to personal relevance, financial commitment and impact on identity.

6. Atmospherics (approximately 200 words)

• Define atmospherics or servicescape and identify key elements such as ambient conditions, spatial layout, signs and symbols and social factors.

• Analyse how specific elements including lighting, colours, music, smells, layout, spacing, crowding, staff behaviour and other customers affect your value perceptions positively or negatively.

• Explain how these atmospheric cues interact with your expectations and emotions during the service experience.

7. Conclusion (approximately 150 words)

• Summarise your overall value in the exchange for this brand by drawing together the value equation, decision-making, risk and involvement and atmospherics.

• Briefly prioritise which elements matter most to you and to similar customers and explain how they increase or reduce perceived value.

• Indicate how these insights could guide managers seeking to add, create or extend value and co-creation opportunities.

Format, Visuals and Referencing

• Format choice: Word or PowerPoint.

  • If using PowerPoint, place your main text in the Notes section and use slides for headings, diagrams and key phrases.

  • If using Word, embed diagrams and images close to the relevant text rather than in an appendix.

• Visuals:

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  • Include at least one labelled diagram for your value equation and optionally one for decision-making perspectives.

  • Include images of the brand or service environment if appropriate and legally allowed and reference all images that you did not create yourself using Harvard AGPS style.

• Referencing:

  • Use Harvard AGPS style for all in-text citations and for the reference list.

  • Provide at least 10 academic or reputable sources including textbook chapters, peer-reviewed articles, high-quality e-books or academic websites.

  • Reference diagrams or models adapted from sources such as value equations, decision-making frameworks and atmospherics models.

Submission and File Naming

• Submit via your learning management system as a single file.

• Use the following file name format: StudentNumber_MKT1002A1

• Retain a backup copy of your work.

Indicative Marking Criteria

• Application of value in the exchange: clear distinction of benefits and costs, depth of analysis, quality of diagram and explanation.

• Decision-making perspectives: accurate use of concepts and clear linkage to your own behaviour.

• Risk and involvement: correct definitions, identification of relevant risk types and convincing explanation of involvement level.

• Atmospherics: specific and insightful analysis of the physical and social environment and its impact on perceived value.

• Structure and writing: adherence to required sections and word counts, active-voice writing, logical flow and clarity.

• Use of sources and Harvard AGPS referencing: quality and relevance of references, correct citation and reference list formatting and correct attribution of images and diagrams.

Your Study Bay Notes

A strong Assignment 1 response typically begins with a concise explanation of the chosen brand and how the service fits into the student weekly routine so that managers can see the context of value in the exchange. A clear value equation then separates functional benefits such as convenience or health outcomes from hedonic and social benefits such as enjoyment, relaxation or feeling part of a group, while also identifying time, money and effort as key costs. A persuasive discussion of decision-making highlights that initial gym or restaurant choices often involve a mix of rational evaluation of price and quality as well as experiential motives like atmosphere and mood, and later decisions may become habitual or reflect genuine brand loyalty. Perceived risk and involvement are then used to explain why a consumer may research options carefully at the start, especially when health, safety or identity are at stake, yet rely on simplified rules once they feel secure with the brand. Atmospherics such as lighting, music and staff warmth are framed as tangible levers that can increase or erode perceived value even when the core service is unchanged, which is vital for services that compete on experience as much as on price. Students who integrate these elements into a coherent narrative grounded in current consumer behaviour literature usually produce analysis that managers can translate directly into practical strategy.

An important additional consideration is the growing role of customer co-creation in shaping perceptions of value. Modern service organisations increasingly recognise that consumers do not simply receive value but actively participate in creating it through their interactions with staff, technology and other customers. This means that the overall experience is influenced by how empowered, engaged and supported the customer feels during the service process. Understanding co-creation helps managers design environments and processes that encourage positive participation and long-term loyalty (Prahalad and Ramaswamy 2004).

 References

Babin, BJ & Harris, EG 2021, CB: Consumer behaviour, 9th edn, Cengage, Boston, MA.

Solomon, MR, Russell-Bennett, R & Previte, J 2019, Consumer behaviour: buying, having, being, 4th ANZ edn, Pearson, Melbourne.

Hansen, T 2005, ‘Perspectives on consumer decision making: an integrated approach’, Journal of Consumer Behaviour, vol. 4, no. 6, pp. 420–437.

Bitner, MJ 1992, ‘Servicescapes: the impact of physical surroundings on customers and employees’, Journal of Marketing, vol. 56, no. 2, pp. 57–71.

Burns, MJ 1993, ‘Value in exchange: the consumer perspective’, PhD thesis, University of Tennessee, Knoxville.

Prahalad, CK & Ramaswamy, V 2004, ‘Co-creation experiences: the next practice in value creation’, Journal of Interactive Marketing, vol. 18, no. 3, pp. 5–14.