MKT360Test3Review - MKT 360 Test 3 Review Fall 2006...

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MKT 360 Test 3 Review Fall 2006 IMPORTANT CONCEPTS Chapter 12 - Products and Services for Consumers 1. Global Brand : brand used globally, worldwide use of a name, term, sign, symbol, design, or combo, intended to identify goods/ services of 1 seller Advantages of using a global brand : global image, more sales o BUT only satisfies minimum common denominator 2. You would use a national brand when : it appeals to that culture of the country – has meaning to that country = level of separation is higher 3. country of origin effect (COE)” : where products are made – brings an image w/it, but not permanent; changes over time How ethnocentrism affects COE : o ethnocentrism: to believe or feel your culture is superior to all other countries/cultures- can give ppl a better image of the prod or a worse image of the product depending on where the product is made o feelings of nat’l pride can influence attitudes toward foreign products Degree of industrialization affects COE by : o industrialized countries have the highest quality image, + there’s generally a bias against products from developing countries 4. A private brand : brand owned by retailers or wholesalers, (EX: Publix Shampoo) 3 reasons that make private labels formidable competitors : o 1. they provide the retailer w/high margins o 2. they receive preferential shelf space (eye level) + strong in-store promotion o 3. They are quality products @ low prices 5. A product is more than a physical item; it is a bundle of Satisfaction (utilities) the buyer receives. 6. Some of the satisfactions (or utilities) a buyer receives from a product : a. Physical benefits b. Psychological benefits Both are influenced by culture Which ones of these are influenced by culture? 7. Innovation defined from a sociological point of view : a. a product perceived as new by a potential adopter 8. Diffusion of innovations : the process by which the adoption of an innovation spreads The 3 extraneous variables that affect the rate of diffusion of an object : o 1. the degree of perceived newness classified according to the effect of the innovation of established patterns of consumption + behavior o 2. the perceived attributes of the innovation o 3. the method used to communicate the idea 9. The 4 different categories of degree of newness as perceived by a market : a. 1. Congruent Innovations b. 2. Continuous Innovation
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c. 3. Dynamically Continuous innovation d. 4. Discontinuous Innovation 10. How disruptive of established consumption patterns is a congruent innovation ? Why ? It doesn’t change your patterns at all / it is not disruptive a. EX: sugar from sugar beets 11. How disruptive is a continuous innovation ? a.
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This note was uploaded on 01/27/2012 for the course MKT 360 taught by Professor N/a during the Spring '07 term at University of Miami.

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MKT360Test3Review - MKT 360 Test 3 Review Fall 2006...

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