Chapter 3 Flashcards
Competitive Intelligence (CI)
Used by firms to collect and synthesize information about their position with respect to their rivals’; enables companies to anticipate changes in the marketplace rather than merely react to them
Macroenvironmental factors
Aspects of the external environment - culture, demographics, social trends, technological advances, economic situation, political/legal environment that affect companies
Culture
The shared meanings, beliefs, morals, values, and customs of a group of people
Country Culture
Easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colours, food preferences
Demographics
Characteristics of human populations and segments, especially those used to identify consumer markets, such as age, gender, income, race, ethnicity, and education
Generational Cohort
A group of people of the same generation who typically have similar purchase behaviours because they have shared experiences and are in the same stage of life
Generation Z / Digital Natives
Born after 1993
Generation Y / Millennials
Born between 1972 and 1992
Generation X
Born between 1966 and 1971
Baby Boomers
Born after WW2 and before 1965
Technological Advances
Technological changes that have contributed to the improvement of the value of both products and services in the past few decades
Economic Situation
Economic changes that affect the way consumers buy merchandise and spend money; see inflation, foreign currency fluctuations, interest rates, and recession
Inflation
Refers to the persistent increase in the prices of goods and services
Foreign Currency Fluctuations
Changes in the value of country’s currency relative to the currency of another country; can influence consumer spending
Interest Rates
Represent the cost of borrowing money
