Coco

Question 1

What is price skimming strategy?

Answer 1

The marketeer sets a relatively high initial price and lowers it over time. This allows the company to recover it’s startup cossts quickly before competition steps in the market.

Question 2

What are rate fences?

Answer 2

Rate fences allow you to catogorize high- and low value customers. Lower value customers might are more restricted then higher valued customers

Question 3

Why is branding important?

Answer 3

It’s important for service firms because of the intangibility.

Question 4

How to overcome intangibility with advertisting and branding?

Answer 4

use documentations on your website, show testimonials, statistics, social media

Question 5

The 3 key sources of communication messages for services are:

Answer 5

Marketing communication channels (advertising, direct marketing)

Service Delivery Channels (WEbsite, frontline employees, shops)

Messages orginating from outside organisation (word-of-mouth, social media networks)

Question 6

What is omnichannel marketing?

Answer 6

Combining different retail channels with the same transaction (for example instore + website)

Question 7

What is multichannel marketing?

Answer 7

Each channel is seperated and indipendent. You can’t combine them for your transaction.

Question 8

Brick-and-mortar retailing:

Answer 8

Physical store retail

Question 9

Why is distribution so expensive?

Answer 9

You have to open shops, get customers, more personel. etc.

Question 10

What value is added by retailers?

Answer 10

1. They provide information
2. Promotion - E.g. communication about an offer
3. Contact - Finding & engaging prospective buyers
4. Negotiation - Reaching a price agreement with the manufacturer

Question 11

What is a pull strategy?

Answer 11

Pull strategy is used for creating/increasing demand for the customer towards the product.

Question 12

Push strategy

Answer 12

Pushing products towards the customer, even though there might not be enough demand.

Question 13

What are the 3 stages of service consumption and their goals?

Answer 13

1. Pre-purchase (acquire customers)
2. Pre-encounter stage (avoid purchase cancellation)
3. Post-encounter stage (retain customers)

Question 14

What are utilitarian needs?

Answer 14

Shopping for a specific task. E.g.: a suit for a job interview.

Question 15

What are hedonic needs?

Answer 15

Shopping for pleasure (non-necessary shopping).

Question 16

Which attributes are important for utilitarian needs?

Answer 16

Price, concience, assortment, information

Question 17

Which attributes are important for hedonic needs?

Answer 17

Physical environment, personal attention, assortment

Question 18

What are the 8 dimensions of a store where customers evaluate and compare to alternatives?

Answer 18

1. General store characteristics
2. Physical store characteristics
3. The time needed to reach the store
4. Products that are offered
5. Prices charged by the store
6. Store personnel
7. Advertising by the store (appealing, believable, etc)
8. Friends their perception of the store (recommended, liked, etc)

Question 19

What are the 3 stages of service consumption?

Answer 19

1. Need awareness - Needs maybe be triggered by: Physical conditions, people’s unconscious minds, external resources
2. Information search - Total set > Awareness set > Consideration set > Choice set > Decision

→Surprisingly, consumers often search for limited amounts of pieces of information for durables 50% of all consumers look at only one shop and 70% at only one brand of appliance.
→A strong brand is needed to get into the awareness and consideration set

3. Evaluation of alternative services

Question 20

Which 3 attributes are there when considering a service?

Answer 20

1. High in search

Tangible characteristics that consumers can evaluate before purchase.

2. High in experience

It cannot be evaluated before purchase; consumers must „experience“ the service.

3. High in Creedence

Characteristics that consumers find hard to evaluate even after consumption (hygiene, ingredients)

High in Search attributes, more easy to evaluate
High in Experience, in the middle of evaluating
High in Creedence, hard to evaluate