Quality can be defined on two dimensions. One of these dimensions is performance quality. Other dimension is market-perceived quality. Performance is viewed internally from firm’s perspective, most consumers expect performance quality to be a given. Market-perceived-consumer perceptions of a quality product often have more to do with market-perceived; these attributes are embedded in the total product.
Product as sum of utilities and satisfactions: product is more than a physical item – it is the sum of the physical and psychological satisfactions it provides the user, utilities include its form, taste, color, odor, and texture; how it functions in use; the package; the label; the warranty; the manufacturer’s and retailer’s servicing; the confidence or prestige enjoyed by the brand; the manufacturer’s reputation; the country of origin. Nostalgia products-products reminding consumer of the past. Green Marketing is concerned with the environmental consequences of a variety of marketing activities. Europe is at the forefront of the green movement, with strong public opinion and specific legislation favoring environmentally friendly marketing and products.
The bundle of satisfactions (utilities) that a consumer receives is a good definition for a product the process by which an innovation spreads is called product diffusion. The goals of the diffusion researcher and the marketer are to shorten the time lag between the introduction of the product and its widespread adoption. Three extraneous variables affect the rate of diffusion of an object. The first is the perceived attributes of the innovation and the second is the method used to communicate the idea. Third is the degree of perceived newness. The text lists five characteristics of an innovation that can assist in determining the rate of acceptance or resistance to a product in the market. Observability is matched to the ease with which the product benefits can be communicated. If a company wished to reduce the degree of economic and/or social risk associated with a product’s use, they would attempt to increase the product’s trialbility. The core component is the elements of the product component model contain the product’s design features and product platform.
Components of Product Component Model:
- Core component: product platform, design features, functional features
- Packaging component: trademark, brand name, price, quality, package, styling. The Windsor Group is concerned that consumers will not be able to get sufficient spare parts for the company’s new line of air conditioners. Which element of product component model would be the element that contains The Windsor Group’s concern is the packaging component.
- Support services component: repair and maintenance, installation, instructions, other related service, deliveries, warranty, spare parts
Ways Services are different than products:
- Intangibility: has intrinsic value that exists only while it is being created
- Inseparability: its creation cannot be separated from its consumption
- Heterogeneity: individually produced and unique. Each time Dr. Jonas sees one of his patients he must appreciate the unique nature of the patient’s background, medical problem, and overall health before he can make a diagnosis. Which of the following components of service is most closely matched to what Dr. Jonas must do to make a diagnosis of a patient is heterogeneity.
- Perishability: once created cannot be stored but must be consumed simultaneously with its creation
Protectionism: EU making modest progress toward establishing a single market for services, exactly how foreign service providers will be treated as unification proceeds is not clear, reciprocity and harmonization possibly will be used to curtail the entrance of some service industries into Europe
Four kinds of barriers face consumer services marketers in this growing sector of the global marketplace. Three of the barriers are controls on transborder data flows, protection of intellectual property, and cultural requirements for adaptation. What is the fourth barrier listed in the text is Protectionism. Electrolux offers a cold-wash only washing machine in Asian countries where electric power is expensive or scarce. Company conforming to homologation
Global Brands have a worldwide use of a name, term, symbol, design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors. The country of origin effect is any influence that the country of manufacture, assembly or design has on a consumer’s positive or negative perception of a product. The influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product is called the country-of-origin effect
Volatility, cyclical swings: factors that exacerbate both ups and downs in demand include professional buyers that tend to act in concert and derived demand that accelerates changes in markets. Categorization of objects. Easterners use broad categories so brand boundaries are more fluid; more accepting of far brand extensions (would use broad category of plants to describe group of plants). Westerners use specific categories (would use smaller sub-categories like flowers, trees, veggies, fruits to describe group of plants).
Derived demand is the demand dependent on another source.