MKT 445 Midterm

MKT 445 Midterm - Concept Advantages of a brand for...

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Concept: Advantages of a brand for consumers AND companies Terms: Definition of a brand, Types of Consumer Risks Brand: name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. o Two most important parts of what a brand is: Identify Differentiation Types of Consumer Risks: Functional, Physical, Financial, Social, Psychological, and Time (Definitions below) Definitions : Consumer Advantages for Brands 1. Identification of source of product allows consumers to… 2. Assign(ment of) responsibility 3. Search Cost Reducer: If consumers recognize a band and have some knowledge about it, then they do not have to engage in a lot of additional thought or processing of information to make a product decision. a. Lower Internal Cost: how much they have to think b. Lower External Cost: How much they have to look around 4. Promise from Product Maker: The meaning imbued in brands can be quite profound, allowing us to think of the relationship between a brand and the consumer as a type of bond or pact. a. Consumers offer their trust and loyalty because of an understanding that the brand will offer consistent utility and product performance. 5. Symbolic Device: Allowing a consumer to project their self-image. Some products are associated with certain types of people, and by using them consumers can communicate with other consumers and themselves the kind of person they are or want to be. 6. Signal of Quality: Given the difficulty of assessing and interpreting product attributes and benefits for experience and credence goods, brands may be particularly important signals of quality. a. Search Goods: like grocery produce, consumers can evaluate product attributes like sturdiness, size, color, style, design, weight, and ingredient composition by visual inspection. b. Experience Goods: like automobile tires, cannot be assessed so easily by inspection, and actual product trial and experience is necessary to judge durability, service quality, safety, and ease of handling or use. c. Credence Goods: like insurance coverage, consumers may rarely learn product attributes. 7. Risk Reducer: Brands can reduce the risk in product decisions. a. Consumers may perceive many different types of risks in buying and consuming a product: a.i. Functional Risk: The product does not perform up to expectations. a.ii. Physical Risk: The product poses a threat to the physical well-being or healthy of the user or others. a.iii. Financial Risk: The product is not worth the price paid. a.iv. Social Risk: The product results in embarrassment from others.
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a.v. Psychological Risk: The product affects the mental well-being of the user. a.vi.
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This note was uploaded on 10/22/2011 for the course MARKETING 445 at USC.

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MKT 445 Midterm - Concept Advantages of a brand for...

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