Ch 2

Question 1

Customer Relationship Management (CRM)

Answer 1

Systematic information management system that collects, maintains, and reports detailed information about customers to enable a more customer-oriented managerial approach

Question 2

Relationship quality

Answer 2

Degree of connectedness between a consumer and a retailer, brand, or service provider

Question 3

Internal influences

Answer 3

Things that go on inside of the mind and heart of the consumer

Question 4

Cognition

Answer 4

Thinking or mental processes that go on as we process and store things that can become knowledge

Question 5

Affect

Answer 5

Feelings associated with objects or experienced during events

Question 6

Individual differences

Answer 6

Characteristic traits of individuals, including personality and lifestyle

Question 7

External influences

Answer 7

Social and cultural aspects of life as a consumer

Question 8

Social environment

Answer 8

Elements that specifically deal with the way other people influence consumer decision making and value

Question 9

Situational influences

Answer 9

Things unique to a time or place that can affect consumer decision making and the value received from consumption

Question 10

Value

Answer 10

A personal assessment of the net worth obtained from an activity

Question 11

Utilitarian value

Answer 11

Value derived from a product that helps the consumer with some task

Question 12

Hedonic value

Answer 12

Value derived from the immediate gratification that comes from some activity

Question 13

Strategy

Answer 13

A planned way of doing something to accomplish some goal

Question 14

Marketing strategy

Answer 14

Way a company goes about about creating value for customers

Question 15

Marketing myopia

Answer 15

A common condition in which a company views itself in a product business rather than in a value - or benefits-producing business. In this way, it is shortsighted.

Question 16

Corporate strategy

Answer 16

Way a firm is defined, and it’s general goals

Question 17

Marketing tactics

Answer 17

Ways marketing management is implemented; involves price, promotion, product, and distribution decisions

Question 18

Augmented product

Answer 18

Actual physical product purchased plus any services such as installation and warranties necessary to use the product and obtain its benefits

Question 19

Total value concept

Answer 19

Business practice wherein companies operate with the understanding that products provide value in multiple ways

Question 20

Value co-creation

Answer 20

The realization that a consumer is necessary and must play a part in order to produce value

Question 21

Consumer Value Framework (CVF)

Answer 21

Consumer behavior theory that illustrates factors that shape consumption-related behaviors and ultimately determine the value associated with consumption

Question 22

Marketing mix

Answer 22

Combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy

Question 23

Target market

Answer 23

Identified segment or segments of a market that a company serves

Question 24

Market segmentation

Answer 24

Separation of a market into groups based on the different demand curves associated with each group

Question 25

Elasticity

Answer 25

Reflects how sensitive a consumer is to changes in some product characteristic

Question 26

Product differentiation

Answer 26

Marketplace condition in which consumers do not view all competing products as identical to one another

Question 27

Product positioning

Answer 27

Way a product is perceived by a consumer

Question 28

Perceptual map

Answer 28

Tool used to depict graphically the positioning of competing products

Question 29

Blue ocean strategy

Answer 29

Positioning a firm far away from competitors’ positions so that it creates an industry of its own and, at least for a time, isolates itself from competitors

Question 30

Ideal points

Answer 30

Combination of product characteristics that provide the most value to an individual consumer or market segment

Question 31

Customer Lifetime Value (CLV)

Answer 31

Approximate worth of a customer to a company in economic terms; overall profitability of an individual consumer