Chapter 13

Question 1

What is the country of origin effect?

Answer 1

defined as any influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product.

Question 2

What are examples of the country of origin effect?

Answer 2

Consumers have broad and vague stereotypes about specific countries and specific product categories that they judge best : Jamaican rum (which is true) , Japanese electronics, Chinese silk.

Also: ethnocentrism- feelings of national pride - BUY LOCAL EFFECT

Question 3

What are three major components of a product ?

Answer 3

Core Component- physical product
Packaging Component- all aspects of a product’s packaging
Support Services- everything that supports and services the product

Question 4

What are the 5 factors that might speed up the adoption process.

Answer 4

 	Relative Advantage
 	Compatibility
	Complexity
	Trialability
   	Observability

Question 5

Discuss the diffusion process.

Answer 5

The process by which an innovation spreads

Innovation
Communicated through certain channels
over time
among the members of a social system

This part of the process- trickle down / trickle up

Question 6

Discuss the difference between individual and family branding strategies.

Answer 6

Family Branding means the brand is interconnected and shares a name. Individual branding means all of the products are advertised separately and you don’t think of a relation.

Question 7

Advantages and disadvantages of family branding strategies

Answer 7

All of the products share the same look and feel. Think Campbell soup that makes all different kinds of soup and products. Think if someone died drinking Campbell soup, you would associate the murders to the brand because it is all in relation.

Question 8

Discuss the difference between national (manufacturer) and private branding strategies.

Answer 8

Manufactured- think national products Tide, Dove
Private Brand- Think local products. Wegman’s products/ Walmart Products- it’s cheaper, save money on advertising, in charge of shel-space and want people to buy their brand over manufactured brands

Question 9

Advantages and disadvantages of national branding strategies

Answer 9

…

Question 10

Advantages and disadvantages of individual branding strategies

Answer 10

Individual Brands-seperate- must have their own advertising budget and it is expensive. Think Proctor & Gamble and all of the individual brands that fall underneath. The advantage is if one brand is doing poorly such as Tylenol murders, it is separate from the other brands and the father company. I.e. no one related Tylenol to Johnson & Johnson company. It protects the father company’s reputations.

Question 11

innovation

Answer 11

Any idea perceived as new by a group of people

Question 12

what are the 2 dimensions of Quality

Answer 12

Performance Quality, Market-Perceived Quality

Question 13

market perceived quality

Answer 13

• Airlines, sports shoes, cars

Consumer perceptions of a quality product. The relationship of quality conformance to customer satisfaction is analagous to delivery of quality. Cost, timeliness, comfortability etc all factor into a customer’s perception.

Question 14

performance quality

Answer 14

-Product needs to perform; Fiat cars; Nokia failure

Did the product or service perform what it was supposed to. Performance quality is expected to be a given.

Question 15

green marketing

Answer 15

Environmental Concerns; Fast food packaging
EU’s Eco-Labeling requirement- a product is evaluated on all significant environmental effects throughout its life cycle from manufacturing to disposal- cradle to grave- approach.
Recycling
Packaging

Question 16

product adaptation/homologation

Answer 16

Describes the changes mandated by local product and service standards.

Legal , economic, political, technological, and climate requirements of the local marketplace often dictate product adaptation.

Question 17

What makes up the product component model?

Answer 17

Core Component, Packaging Component, Support Services

Question 18

trickle down

Answer 18

The trickle-down effect is a model of product adoption in marketing that affects many consumer goods and services. It states that trends flows vertically from the upper classes to the lower classes.

Question 19

trickle-up

Answer 19

The trickle-up effect is a model of product adoption in marketing. It states that trends flows vertically from the lower classes to the upper classes.

Question 20

Support Service Adaptations

Answer 20

Longer/shorter warranties
What is covered?
Routine maintenance not common in many cultures
Tonnage/capacity for products
Availability of spare parts/service stations
Signs on products in local languages (Danger!)
Literacy rates

This is difficult in developing countries. In the US, a consumer has the option to request service from the company or from scores of competitive service retailers ready to repair or maintain anything….

Question 21

PAckaging Component Adaptations

Answer 21

Labels in local/multiple languages
Country-of-origin
Clear packaging versus cans
Package size
Metric
Diet coke? Daily recommended consumption?
Colors, shapes, amount in packages
Frankenfood labels

Question 22

Examples of Core Component Adaptations

Answer 22

Adapt for local taste
Cereals with seaweed, carrot, zucchini taste in Japan
Tang with different tastes (not just orange)
Odor of household cleaners
Washing machines with heaters
Electricity requirements
Fewer functions but more durable

Question 23

What is country of origin?

Answer 23

It states the origin of product and must be on the label.

Question 24

What is country of origin?

Answer 24

It states the origin of product and must be on the label.

Question 25

What are some trademark issues?

Answer 25

Piracy
Protection- names being stolen
Trademarks becoming generic like aspirin and zipper that are no longer protected. Xerox, Kleenex, and Coke are protected.

Question 26

Characteristics of Services

Answer 26

Intangible- You can’t touch a service whereas products are tangible

Inseparable in that its creation cannot be separated from its consumption. Level of interaction is necessary.

Individually produced-experience can be interchangeable

You can’t store it and has to be consumed when created

Question 27

What are some US customer exports?

Answer 27

tourism
transportation
entertainment