mktg ch8-11

Question 1

core functionality, features, performance quality, conformance quality, durability, reliability, form, style customization

Answer 1

product differentiation

Question 2

totality of features that affect the way a product looks, feels and functions to a consumer. Emotionally powerful, transmits brand meaning/positioning, makes brand experiences rewarding

Answer 2

design

Question 3

observation, ideation, implementation

Answer 3

design thinking

Question 4

width, length, depth, consistency

Answer 4

product portfolio

Question 5

marketing tool, self service, consumer affluence, company & brand image, innovation opportunities

Answer 5

packaging

Question 6

if a product fails to function as promised by company, company will provide compensation

Answer 6

guarantee

Question 7

cover the repair or replacement of purchased products and usually do not allow customer to return product for a refund

Answer 7

warranties

Question 8

act/performance one party can offer to another that is basically intangible and does not result in ownership

Answer 8

service

Question 9

Intangibility
Inseparability
Variability
Perishability

Answer 9

characteristics of a service

Question 10

Demand side: differential pricing, nonpeak demand, comp services, reservation services
Supply side: part time employees, peak time efficiency, increased consumer participation, shared services, facilities for future expansion

Answer 10

perishability

Question 11

tangible good w/ accompanying services

Answer 11

pure tangible good

Question 12

major service with accompanying minor goods/services

Answer 12

Hybrid

Question 13

only intangible service

Answer 13

pure service

Question 14

preparing, pricing, distributing and promoting the services to customers

Answer 14

external marketing

Question 15

training and motivating employees to serve customers well

Answer 15

internal marketing

Question 16

employees skill in serving customers

Answer 16

interactive marketing

Question 17

customer centricity, service quality, cater to high value customers, manage customer complaints

Answer 17

best practices

Question 18

person to person becoming automated

Answer 18

self service

Question 19

(1+1=3), ordering, delivery, installation, customer training, customer consulting, maintenance, repair

Answer 19

product service bundles

Question 20

name, term, sign, symbol, design or a combination of them, intended to identify the goods or services of seller/s to differentiate them from competitors

Answer 20

brand

Question 21

process of endowing products & services with power of a brand

Answer 21

branding

Question 22

monetary value of a brand

Answer 22

brand equity

Question 23

monetary value of all intangible assets of a company

Answer 23

goodwill

Question 24

Cost approach, Market approach, Financial approach

Answer 24

3 approaches to measure brand equity

Question 25

focused series of procedures to assess the health of the brand, uncover its sources of brand equity and suggest ways to improve and leverage its equity

Answer 25

brand audit

Question 26

brand audits used as input to collect quantitative data from consumers over time, providing consistent baseline info

Answer 26

brand tracking

Question 27

negotiations, reference pricing, image pricing

Answer 27

key concepts for pricing

Question 28

Defining price objective Determining demand Estimate costs Analyze competitors Select pricing method Set final price

Answer 28

Setting the price (OD-CC-MP)

Question 29

short term profit, market skimming, quality leadership

Answer 29

objective of price setting

Question 30

price elasticity - how much price affects quantity sold

Answer 30

demand of price

Question 31

add a standard markup to the product’s cost

Answer 31

markup pricing

Question 32

= unit cost/(1-desired return on sales)

Answer 32

markup price formula

Question 33

sets a price that will yield the desired rate of return

Answer 33

target rate of return pricing

Question 34

= unit cost + desired return * invested capital /unit sales

Answer 34

target rate of return formula

Question 35

takes into account inputs, such as the buyer’s image of the product

Answer 35

economic value to customer pricing

Question 36

firm bases its price largely on competitors prices

Answer 36

competitive pricing (going rate)

Question 37

growing more popular e.g. electronic marketplaces for excess inventories or used goods Ascending (english) Descending (dutch) Sealed bid

Answer 37

auction pricing

Question 38

when prices all of a sudden change, not following set formula

Answer 38

price discrimination

Question 39

seller charges each customer a separate price, depending on the intensity of their demand

Answer 39

first degree price discrimination

Question 40

seller charges less to buyers of larger volumes

Answer 40

second degree price discrimination

Question 41

seller charges different amounts to different consumer segments Customer segment pricing Product form pricing Channel pricing Location pricing Time pricing

Answer 41

third degree price discrimination

Question 42

Determine size Establish conditions for participation Decide on duration Choose a distribution vehicle Establish timing Set total sales promotion budget

Answer 42

approach for incentives

Question 43

Price reductions, coupons, cash refunds, price packs, tie in promotions, prizes, financing, seasonal discounts

Answer 43

incentive examples