Chapter 5

Question 1

Marketing Mix

Answer 1

The series of seven key variables-product, price, place, promotion, people, process, and physical evidence - that are varied by marketers as part of the customer offering

Question 2

Digital branding

Answer 2

Technology brand for target audiences

Question 3

Differential advantage

Answer 3

What a firm creates added value by varying the mix to stand out from competitors and get noticed by customers

Question 4

Branding

Answer 4

The process by which companies distinguish their product offerings from the competition by the sum of the characteristics of the product or service as perceived by the customer

Question 5

Brand equity

Answer 5

The assets are liabilities, linked to a brand name and symbol that add to or subtract from a service
1. Brand domain.
2. He heritage
3. Brand values.
4. Brand assets.
5. Brand personality.
6. Brand reflection.

Question 6

Brand experience

Answer 6

The frequency and depth of interactions with a brand which can be enhanced through the Internet

Question 7

Brand advocates

Answer 7

A customer who has a favorable perception of a brand who will talk favorably about a brand to acquaintances to help generate awareness of a brand or influence purchase intent

Question 8

Brand intensity

Answer 8

The totality of associations, including name and symbols that must be communicated

Question 9

Product variable

Answer 9

The element of the marketing mix that involves research and customers needs developing appropriate products and service products and communicating their features and benefits

Question 10

Core product

Answer 10

The fundamental features of the product that meet the users needs

Question 11

Extended product

Answer 11

Additional features and benefits beyond the core product

Question 12

Mass customization

Answer 12

A form of micro segmentation where firms use economies of scale enabled by technology to offer variance of products to individual customers or groups or customers

Question 13

Bundling

Answer 13

Bundling combined several product or service options into a package of services, typically at a discounted price

Question 14

Tipping point

Answer 14

Using the science of social epidemics that typically explains principles underpin the rapid spread of ideas, products and behaviors through a population

Question 15

Long tail concept

Answer 15

A frequency distribution suggesting the relative variation and popularity of items selected by consumers

Question 16

Price variable

Answer 16

the element of marketing mix it involves defining product prices, and pricing models

Question 17

Pricing models

Answer 17

Describes the form of payments such as outright purchase auction, rental value purchases, and credit terms

Question 18

Price transparency

Answer 18

Customer knowledge about pricing increases due to increased availability of pricing information

Question 19

Differential pricing

Answer 19

Identical products are priced differently for different types of customers markets are buying situations

Question 20

Price elasticity of demand

Answer 20

Measure of consumer behaviour that indicates the change in demand for a product or service in response to changes in price. Price elasticity of demand is used to assess the extent to which a change in price will influence demand for a product

Question 21

Satisfacting behavior

Answer 21

Consumers do not behave entirely rationally in product or supplier selection. They will compare alternatives, but then may make their choice given imperfect information.

Question 22

Aggregators

Answer 22

An alternative term to price comparison sites or comparison search engines (CSEs). Aggregators include product, price and service information, comparing competitors within a sector such as financial services, retail or travel. Their revenue models commonly include affiliate revenues (CPA), pay-per-click advertising (CPC) and display advertising (CPM

Question 23

Commoditisation

Answer 23

The process whereby product selection becomes more dependent on price than on differentiating features, benefits and value-added services

Question 24

Forward auctions

Answer 24

Item purchase but highest bid made in bidding period

Question 25

Reserve auctions

Answer 25

Item purchased from lowest bidding supplier in bidding period

Question 26

Offer

Answer 26

A commitment by a trader to sell under certain conditions

Question 27

Request for proposal (RFP)

Answer 27

A formal request sent to potential sellers from a buyer who is looking to procure products or services

Question 28

Dynamic pricing

Answer 28

Prices can be updated in real time according to the type of customer or current market conditions

Question 29

Place variable

Answer 29

The element of the marketing mix that involves distributing products to customers in line with demand ad minimizing cost of inventory transport and storage

Question 30

3 aspects of navigational advantage

Answer 30

1. Reach
2. Richness
3. Affiliation

Question 31

Syndication

Answer 31

Content or product information is distributed to third parties

Question 32

Localization

Answer 32

Tailoring of website information for individual counties or regions. Can range from simple translation to cultural adaptation

Question 33

Virtual organization

Answer 33

A virtual organisation uses information and communications technology to allow it to operate without clearly defined physical boundaries between different functions. It provides customised services by outsourcing production and other functions to third parties

Question 34

Virtualization

Answer 34

The process whereby a company develops more of the characteristics of a virtual organisation.

Question 35

Promotion variable

Answer 35

The element of the marketing mix that involves communication with customers and other stakeholders to inform them about the product and the organisation.

Question 36

People variable

Answer 36

The element of the marketing mix that involves the delivery of service to customers during interactions with those customers

Question 37

Avatars

Answer 37

A term used in computer-mediated environments to mean a ‘virtual person’. Derived from the word’s original meaning: ‘n. the descendant of a Hindu deity in a visible form; incarnation; supreme glorification of any principle

Question 38

Autoresponder (mailbot)

Answer 38

Software tool or ‘agent’ running on a web server that automatically sends a standard reply to the sender of an email message.

Question 39

Process variable

Answer 39

The element of the marketing mix that involves the methods and procedures companies use to achieve marketing functions

Question 40

Physical evidence variable

Answer 40

The element of the marketing mix that involves the tangible expression of a product and how it is purchased and used