Ch 13-- Products and Services for Consumers Flashcards
(37 cards)
What is a global brand?
One you use everywhere
Ex: Netle
What are advantages of using a global brand?
Brand image
Economies of Scale
What is “country of origin effect (COE)”?
The image that a product gets from the country in which its manufactured
How does ethnocentrism affect COE?
if a country is ethnocentric (when a culture thinks their culture is superior) they will not purchase your items if you are foreign
How does degree of industrialization affect COE?
if you have a lower degree of industrialization the Country of Origin Effect may give your country a worse look when it comes to quality of products and vice versa
Ex: Volkswagen Mexico vs Volkswagen Germany
What is a private brand?
A brand that is owned/belongs to a distributor
What are 3 reasons that make private labels formidable competitors?
- A provide retailer with high margins
- receive preferential shelf space and strong in-store promotion
- Quality products at low prices
Fill in the blanks: A product is more than a physical item; it is a bundle of ___?_____ the buyer receives.
Satisfaction and benefits
What are some of the satisfactions (or utilities) a buyer receives from a product (1)? Which ones of these are influenced by culture (2)?
- ASK PROF
- All of them are influences by culture
How would you define innovation from a sociological point of view?
Any idea perceived as new by a group of people Is an innovation
** perception is key
What is diffusion of innovations
Process by which the adoption of an innovation spreads through the population
What are the 3 extraneous variables that affect the rate of diffusion of an object?
- Perceived degree of newness
- Perceived attributes of the innovation
- Method used to communicate the idea
What are the 4 different categories of degree of newness as perceived by a market?
- Congruent Innovation
- Continuous Innovations
- Dynamically Continuous Innovations
- Discontinuous Innovations
What is congruent innovation
NOT an innovation at all because it causes absolutely NO DISRUPTION of established consumption patterns
ex: substituting cane sugar for beet sugar
What is continuous innovation
LEAST disruptive of consumption patters; involves the alteration of a product resulting in a perceived improvement “new and improved” version of products
ex: fluoride toothpaste, disposable razors
What is dynamically continuous innovations
SOME disruption of consumption patterns
ex: electric toothbrushes, cell phones
What is discontinuous innovations
involves ESTABLISHMENT of new consumption patterns; creation of new previously unknown products that FUNDAMENTALLY CHANGE the way things are done
ex: VCR, personal computer
How disruptive of established consumption patterns is a congruent innovation and why?
NONE, not a big difference between products
ex: cane sugar v. beet sugar
How disruptive is a continuous innovation?
LEAST disruptive
What does a continuous innovation almost always involve?
New and improved products
How disruptive is a dynamically continuous innovation?
Generally disruptive
What is the reaction from consumers towards dynamically continuous innovation? Why?
RESISTED, the more a product is innovative, the more it’s going to be resisted bc people are creatures of habits
What are the 5 characteristics of an innovation as perceived by the intended market?
- Relative advantage
- Compatibility
- Complexity
- Trialability
- Observability
What is relative advantage?
Perceived marginal value of the new product relative to the old
