Chapter 13 Flashcards
What is the country of origin effect?
defined as any influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product.
What are examples of the country of origin effect?
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
What are three major components of a product ?
Core Component- physical product
Packaging Component- all aspects of a product’s packaging
Support Services- everything that supports and services the product
What are the 5 factors that might speed up the adoption process.
Relative Advantage Compatibility Complexity Trialability Observability
Discuss the diffusion process.
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
Discuss the difference between individual and family branding strategies.
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.
Advantages and disadvantages of family branding strategies
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.
Discuss the difference between national (manufacturer) and private branding strategies.
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
Advantages and disadvantages of national branding strategies
…
Advantages and disadvantages of individual branding strategies
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.
innovation
Any idea perceived as new by a group of people
what are the 2 dimensions of Quality
Performance Quality, Market-Perceived Quality
market perceived quality
- 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.
performance quality
-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.
green marketing
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
product adaptation/homologation
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.
What makes up the product component model?
Core Component, Packaging Component, Support Services
trickle down
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.
trickle-up
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.
Support Service Adaptations
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….
PAckaging Component Adaptations
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
Examples of Core Component Adaptations
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
What is country of origin?
It states the origin of product and must be on the label.
What is country of origin?
It states the origin of product and must be on the label.
What are some trademark issues?
Piracy
Protection- names being stolen
Trademarks becoming generic like aspirin and zipper that are no longer protected. Xerox, Kleenex, and Coke are protected.
Characteristics of Services
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
What are some US customer exports?
tourism
transportation
entertainment
