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Chapter 32 Marketing Essentials
Terms in this set (40)
A promise, or guarantee, given to a customer that a product will meet certain standards. These standards normally apply to materials, workmanship, and/or performance.
Another term for warranty, except it is used more for promotional phrases.
Is explicitly state, in writing or spoken words, to induce a customer to buy a product.
Guarantees that if a product is found to be defective within the warranty period, it will be repaired/replaced at no cost to the purchaser.
May exclude certain pats of the product from coverage or require the customer to bear some of the costs.
One that exists automatically by state law whenever a purchase takes place.
Warranty of merchantability
A promise from the seller that the product sold is fit for the intended purpose.
Warranty of fitness for a particular purpose
When the seller advises a customer that a product is suitable for a particular use, and the customer acts on that advise. But it turns out that the advise was wrong.
A statement that contains exceptions to and exclusions from a warranty. To limit damages that can be recovered by the customer.
What do warranties do for a business?
Force a company to focus on customer needs
Set clear standards of performance
Generate customer feedback
Encourage quality control
Boost performance efforts
provide repairs or preventive maintenance for a specified length of time beyond a product's normal warranty period.
How many people use the extended warranty that they buy?
12% - 20%
What are some of the questions that product planners use to evaluate a product from the customers POV.
Was the product delivered on time?
Was installation done correct?
Was the bill for the good or service accurate and timely?
Was the service provided promptly, courteously, and correctly?
Was technical assistance and training provided?
Were directions written correctly?
Magnuson-Moss consumer product Warranty act of 1975
This federal statute governs written warranties for all consumer products costing $15 or more.
Consumer product safety act of 1972
Forces companies to sell safe products.
Are statutes designed to protect consumers from poorly built cars.
An impartial third party that decides crucial issues.
What are the steps that a consumer can take when they feel that they have not been adequately protected by a warranty?
Contact the business
Contact local, state, or federal offices
Could take legal action
Failure to take proper reasonable care.
What is the importance of warranties in product planning?
Assures quality of the product.
Has the ability to make a bit of extra money.
Can protect in legal cases.
What are some extended product features?
Service after sale
What are the major provisions of product safety legislation?
Keeps companies in check.
Keeps the consumers safe.
What are the consumers' responsibilities and rights related to product performance.
The product needs to work for the intended use.
The consumer needs to keep proper care of the product.
Allows businesses or individuals to obtain products or money in exchange for a promise to pay later.
The maximum amount that can be put on a credit card based on the customer's ability to pay it back.
A flat yearly charge similar to a membership fee.
Variable rate plans
Rates that are tied to other rates.
Special customer cards
Offered to frequent shoppers. They allow customers to receive on items purchased.
Where the borrower pledges some asset.
A loan that is given out based on only a customers credit worthiness/Credit Score.
The dollar amount a customer pays to use credit.
Regular charge accounts
Allows customers to charge purchases during a month and pay the balance in full within 30 days after being billed.
Time payment plans, allow for payment over a period of time. Normally for large purchases. Sometimes requires a down payment.
The retailer determines the credit limit and when payments are due.
Allow for payment of purchased item over a certain time without a finance charge.
The truth lending act of 1968
Requires that lenders disclose info. about annual percentage rates.
Fair credit reporting act of 1971
requires that a lender report the name address of the credit bureau that was used by the lender when a consumer is denied credit.
What is the importance of credit?
It is essential to our economy
Allows people to buy expensive items
Builds relationships between businesses and customers
What are the five sources of consumer credit?
What are the four types of credit accounts extended to consumers?
THIS SET IS OFTEN IN FOLDERS WITH...
Federal Credit Laws and Clauses
Lap Work the Big Six- Marketing Functions
Supply and Demand Practice Test
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ch 24 BUS 140