| A | B |
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| 6: 4 i's for service | the four unique elements to services: intangibility, inconsistency, inseparability, and inventory |
| 6: search, experience, credence properties | search- are tangible good and services like jewelry and furniture that have color, size, and style that can be determined before purchase. experience- are services and restaurants and child care which can only be discerned after purchase or during consumption. credence- services provided by specialized professionals like medical diagnoses and legal services where consumer may find impossible to evaluate even after purchase and consumption |
| 6: dimensions of service quality: reliability, tangibles, responsiveness, assurance, empathy | relia- ability to perform the promised service dependably and accurately. tan- appearance of physical facilities, equipment, personnel, and communication materials. respo-willingness to help customers and provide promt service. assu- knowledge and courtesy of employees and their ability to convey trust and confidence. emp- caring, individualized attention provided to customers. |
| 6: 2 roles of pricing in services marketing-influencing perceptions and capacity management | pg 327 |
| 6: items included in the broad definition of a product | a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other unit of value |
| 6: consumer goods: convenience, shopping, specialty goods-how the 4P's are used for each and consumer purchase behavior for each type | p 263 products purchased by the ultimate consumer |
| 6: product life cycle stages and how the 4 P's are used in each stage, how much competition is in each stage, objectives, objectives in each stage | pg 132 |
| 6: diffusion of innovation-innovators, early adopters, early majority, late majority, and laggards | inn- venturesome, higher educated, use multiple information sources. early a- leaders in social setting, slightly abouve average education. early m- deliberate, many informal social contracts. late- skeptical, below average social status. lag- fear of debt, neighbors and friends are information sources |
| 6: managing the product life cycle (extending the mature stage) by finding new users, increasing usage, creating new use situations | pg 292 |
| 6: new product development process | 1. new-product strategy development, 2. idea generation, 3. screening and evaluation, 4./ business analysis, 5. development, 6. market testing, 7. commercialization |
| 6: brand equity | the added value a given brand name gives to a product beyond the functional benefits provided |
| 6: marketing advantages of packaging: perceptual, communication, functional | percep-from black and white to color w/ cartoons increases sales and coke brings back the old bottle. funct- fitting coke onto a fridge shelf, easy squeeze bottles. comm-nutrition, seals of approval, brand names, lable conveys something to consumer |
| 6: fashion, fad, low learning, and high learning PLC | fash- mostly in clothes lasting years or decades, its introduced, declines, and then seems to return. fad- rapid sales on introduction and then an equally rapid decline. low- sales begin immediatly because little learning is required by the consumer and the benefits of purchase are readily understood. high- one for which significant education of the customer is required and there is an extended introductory period |
| 7: demand depends on consumer tastes, price of substitues, consumer income | consumer tastes- depends on many factors such as demographics, culture, and technology, because consumer tates can change quickly, up to date marketing research is essential. Price and availability of similar products-if the price of time magazine falls, more poeople will buy it, so fewer will buy newsweek. time is a subsittute to newsweek. remember that as the price of substitues falls or their availability increases, the demand for a product (newsweek) will fall. Consumer income- in general, as a reasl consumer income (allowing for inflaction) increases, demand for a product also increases |
| 7: what is a demand curve? | a graph relating the quantity sold and price, which shows the maximum number of units that will be sold at a given price |
| 7: what is movement along the demand curve? how would marketers get movement along the demand curve to occur? | movement assumes that other factors (consumer tates, price and availability of substituts and consumer income) remain unchanged. marketers just let it happen |
| 7: what is a shift in the demand curve? How would marketers get a demand curve to shift? | shift happens when advertising causes a rise in increased demands. adversiing can change this |
| 7: skimming pricing | setting the highest initial price that customers really desiring the product are willing to pay |
| 7: penetration pricing | setting a low initial price on a new product to appeal immediately to the mass market |
| 7: prestige pricing | setting a high price so that quality-or status- conscious consumers will be attracted to the product and buy it |
| 7: predatory pricing-charge a low price to drive competitors out of buisness | the practice of charging a very low price for a product with the intent of driving competitors out of business |
| 7: total revenue | the total money received from the sale of a product |
| 7: fixed cost | the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold |
| 7: variable cost | the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold |
| 7: total cost | the total expense incurred by a firm in producing and marketing a product. total cost is the sum of fixed cost and variable cost |
| 7: profit | the reward to a business firm for the risk it undertakes in offering a product for sale; the money left over after a firm's total expenses are subtracted from its total revenue |
| 7: breakeven analysis-be able to do problems using this formula: BEP= (FC)/(unit price-VC per unit) | a technique that analyzes the relationship between total revenue and total cost to determine profitablility at various levels of output. pg 351 |
| 7: market share | the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself |
| 7: elasticity | has to do with supply and demand, when lowering a price sometimes it creates a lot more buyers and sometimes it doesnt |
| 9: how intermediaries minimize transactions | ssss |
| 9: supply chain | a sequence of firms that perform activities required to create and deliver a good or service to consumers or industrial users |
| 9: direct/indirect channels | direct is a marketing channel where a producer and ultimate consumers deal directly with each other. indirect is are marketing channels wehre intermediaries are inserted beween the producer and consumers and perform numerous channel functions |
| 9: wholesaler-take title, agents do not take title | s |
| 9: distribution density; intensive, selective, exclusive | intensive distribution: a firm tires to place its products and services in as many outlets as possible. Exclusive distribution?: extremem opposite of intensive, cuz only one retail outlet in a specified geographical area carries the firm's products. selective distribution: lies between the two extremes and means that a firm selects a few retail outlets in a specific geographical area to carry its products |
| 9: 2 goals/objectives of logistics: minimize costs, maximize customer service | cost effective, it is important to drive down logistics costs, but there is a limit. a firm can drive down logistics costs as long as it can deliver expected customer service. so they must satsify customer requirements |
| 9: 5 transportation modes: which is cheapest, which is fastest, what is their offering | s |
| 9: logistics benefits of packaging: organization, protection, efficiency of handling, identifcation | s |
