Study Guide.docx - Quality as a competitive tool is the...

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Quality, as a competitive tool, is the deciding factor in world markets Quality can be defined on two dimensions: market-perceived quality and performance quality. Quality is associated with customer satisfaction Quality is also measured in many industries by objective third parties such as JD Power and Associates Customer satisfaction indexes developed are now being used to measure satisfaction across a wide variety of consumer products and services Intense global competition is placing new emphasis on manufacturing quality products. Product life cycles are becoming shorter focusing on Quality products, Competitive prices and Innovative products. The power is shifting from seller to the buyer. Customers have more choices with more companies competing for their attention. More competition and more choices means more power in the hands of the customer, driving the need for quality Homologation is used to describe the changes mandated by local product and service standards Green marketing a term used to identify concern with the environmental consequences of a variety of marketing activities Adaptation A product is the sum of the physical and psychological satisfactions it provides to the user. many facets of product utilities are related to culture. The meaning and value imputed to the psychological attributes of a product can vary among cultures and are perceived as negative or positive. Diet Coke changed the name to Coke Light when introduced to Japan. The greater the cultural differences between the two markets, the greater the extent of adaptation that may be necessary A product is multidimensional, and the sum of all its features determines the bundle of satisfactions (utilities) received by the consumer. The many dimensions of products can be divided into three distinct components in Product Component Model: core component packaging component and support services component Five characteristics of an innovation Relative Advantage -the perceived marginal value of the new product relative to the old. Compatibility -its compatibility with acceptable behavior, norms, values, and so forth. Complexity -the degree of complexity associated with product use. Trialability - the degree of economic and/or social risk associated with product use. Observability - the ease with which the product benefits can be communicated Factors affecting the rate of diffusion of innovations The five characteristics of an innovation can assist in determining the rate of acceptance or resistance of the market to a product . three variables affect the rate of diffusion of an object : 1. the degree of perceived newness 2. the perceived attributes of the innovation and 3. the method used to communicate the idea Unique characteristics of consumer services 1. Intangibility 2. Inseparability 3. Heterogeneity and 4. Perishability Global brands-worldwide use of a name, term, sign, symbol (visual and/or
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  • Spring '17
  • Morgan
  • Marketing, markets- industrial product, middlemen 2.Channel control

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