Coco Flashcards
What is price skimming strategy?
The marketeer sets a relatively high initial price and lowers it over time. This allows the company to recover it’s startup cossts quickly before competition steps in the market.
What are rate fences?
Rate fences allow you to catogorize high- and low value customers. Lower value customers might are more restricted then higher valued customers
Why is branding important?
It’s important for service firms because of the intangibility.
How to overcome intangibility with advertisting and branding?
use documentations on your website, show testimonials, statistics, social media
The 3 key sources of communication messages for services are:
Marketing communication channels (advertising, direct marketing)
Service Delivery Channels (WEbsite, frontline employees, shops)
Messages orginating from outside organisation (word-of-mouth, social media networks)
What is omnichannel marketing?
Combining different retail channels with the same transaction (for example instore + website)
What is multichannel marketing?
Each channel is seperated and indipendent. You can’t combine them for your transaction.
Brick-and-mortar retailing:
Physical store retail
Why is distribution so expensive?
You have to open shops, get customers, more personel. etc.
What value is added by retailers?
- They provide information
- Promotion - E.g. communication about an offer
- Contact - Finding & engaging prospective buyers
- Negotiation - Reaching a price agreement with the manufacturer
What is a pull strategy?
Pull strategy is used for creating/increasing demand for the customer towards the product.
Push strategy
Pushing products towards the customer, even though there might not be enough demand.
What are the 3 stages of service consumption and their goals?
- Pre-purchase (acquire customers)
- Pre-encounter stage (avoid purchase cancellation)
- Post-encounter stage (retain customers)
What are utilitarian needs?
Shopping for a specific task. E.g.: a suit for a job interview.
What are hedonic needs?
Shopping for pleasure (non-necessary shopping).
Which attributes are important for utilitarian needs?
Price, concience, assortment, information
Which attributes are important for hedonic needs?
Physical environment, personal attention, assortment
What are the 8 dimensions of a store where customers evaluate and compare to alternatives?
- General store characteristics
- Physical store characteristics
- The time needed to reach the store
- Products that are offered
- Prices charged by the store
- Store personnel
- Advertising by the store (appealing, believable, etc)
- Friends their perception of the store (recommended, liked, etc)
What are the 3 stages of service consumption?
- Need awareness - Needs maybe be triggered by: Physical conditions, people’s unconscious minds, external resources
- Information search - Total set > Awareness set > Consideration set > Choice set > Decision
→Surprisingly, consumers often search for limited amounts of pieces of information for durables 50% of all consumers look at only one shop and 70% at only one brand of appliance.
→A strong brand is needed to get into the awareness and consideration set
- Evaluation of alternative services
Which 3 attributes are there when considering a service?
- High in search
Tangible characteristics that consumers can evaluate before purchase.
- High in experience
It cannot be evaluated before purchase; consumers must „experience“ the service.
- High in Creedence
Characteristics that consumers find hard to evaluate even after consumption (hygiene, ingredients)
High in Search attributes, more easy to evaluate
High in Experience, in the middle of evaluating
High in Creedence, hard to evaluate
