Answer the personal consumer buys goods and services

Info icon This preview shows pages 19–21. Sign up to view the full content.

View Full Document Right Arrow Icon
Answer: The personal consumer buys goods and services for his or her own use, for the use of the household, or as a gift. In each, the final user is the individual, or end user. The organizational consumer includes profit and non-profit businesses, government agencies, and institutions like schools, hospitals and prisons, all of which buy products and services to run their organizations. (Understanding, Moderate, p. 1.3) 100. Compare the selling concept and the marketing concept on three major points. Answer: The selling concept’s major focus is to sell the products that the marketer is best at producing. The marketing concept does the opposite; it makes what it knows will sell. The selling concept is used for products that consumers are unlikely to buy; hence, it requires some form of “hard sell” approach. The marketing concept has already ensured the product is in demand by conducting consumer research to explore their needs. The selling concept does not consider customer satisfaction and long term relationships. The marketing concept focuses on customer satisfaction and building and strengthening relationships with their customers to ensure repeat business. (Understanding, Challenging, p. 1.5-6) 19
Image of page 19

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
101. Talk briefly about market segmentation, targeting, and positioning. Answer: Market segmentation is the process of dividing a market into a subset of consumers with common needs or characteristics. Since most companies have limited resources, very few companies are able to pursue all the segments that they have identified. Market targeting is selecting one or more of the segments identified as the groups that the company will pursue. Positioning is developing a distinct image for the product or service in the mind of the consumer—an image that will differentiate the offering from competing ones, and that will perform better than the competition at satisfying the same need. It also means that the company should develop a unique selling proposition and communicate the benefits of the product to the customers. (Understanding, Moderate, p. 1.8-9) 102. In terms of expectations, when is a customer not satisfied, satisfied, and delighted? Answer: A customer is satisfied when the expectations have been met, a customer is dissatisfied when expectations have not been met and the product did not perform as expected. A customer is highly satisfied or delighted when the product or service has exceeded the expectations of the customer. (Understanding, Easy, p. 1.12) 103. Identify and discuss the reasons for which small reductions in customer defections produce significant increases in profits.
Image of page 20
Image of page 21
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern