Chapter 16 (lecture 3) Flashcards
What is the diffusion of innovation?
The rate a new product spreads/is adopted in the marketplace (it difference among product categories)
- It is S shaped
What influences the diffusion of innovation?
- Advantage of the new product
- Compatibility with beliefs/opinions and lifestyles
- Perceived risk
- Trialability
- Availability
What are the different categories in the diffusion of innovation?
- Innovators
- Early adopters
- Early majority
- Later majority
- Laggards
What is the product life cycle?
Also an S-curve, and this cycle is affected by several other factors as well:
- repeat purchases
- changes in consumer preferences
- environmental changes
What are the steps in the product life cycle?
- Introduction
- Growth
- Maturity
- Decline
What need managers to do during the (1) introduction phase?
- Creating awareness
- Stimulating trial
- Promotion and advertising
What need managers to do during the (2) growth phase?
- Stimulating WOM
- New market segments and brand extensions
What need managers to do during the (3) maturity phase?
- Reducing production and marketing costs
What need managers to do during the (4) decline phase?
- Harvesting
- Bring costs to minimum
- Rejuvenate the product or identifying a new market segment for it
What are the advantages of a brand name?
- Stored in customers’ memories
- Provides promise or excellence
- Increase trust
- Willingness to pay for the name
What is a brand identity?
Who are you?
It depends on the strength and nature of the associations that come to mind
What is brand meaning?
What are you?
It depends on the strength and nature pf the image of the brand in terms of quality and performance
What are brand responses?
Strong feelings, thoughts and reactions from consumers
What is brand relationship?
The relationship between the brand an the consumers
What is brand resonance?
A consumer’s intense and actively loyal relationship with a brand
