chapter 4

Question 1

a good SCA meets three criteria:

Answer 1

1. Customers care about what this SCA offers.
2. The firm does it better than competitors, which generates a relative
   advantage.
3. The SCA is hard to duplicate or substitute, even with significant resources.

Question 2

Brand

Answer 2

Brand images reside in consumers’ minds, which makes them difficult to duplicate, facilitates habitual buying through awareness, and provides identity benefits to customers

Question 3

offerings

Answer 3

Cost benefits, performance advantages, access to distribution channels

Question 4

relationships

Answer 4

Leads to trust, commitment, and interpersonal reciprocal bonds that are hard to build or duplicate

Question 5

customer equity

Answer 5

The total lifetime values of all current and future customers, which is the sum of a firm’s brand, offering, and relational equities.

Question 6

experiments

Answer 6

A scientific procedure undertaken by managers to discover, test, or demonstrate a marketing hypothesis.

Question 7

natural experiments

Answer 7

Experiments that purposefully (rather than randomly) apply a marketing treatment to one group, then compare the effects of different marketing strategies.