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Marketing E2

Terms in this set (284)

Model of Buying Behavior
Marketing stiumuli
-Product, price, place, promotion

Other Stimuli
-Economic, Technological, Political, Cultural

Buyer's Characteristics
-Cultural, social, personal, psychological

Buyers decision process
-Problem recognition, information search, evaluation, decision, post-purchase behavior

Buyer's Decisions
-Product choice, brand choice, dealer choice, purchase timing, purchase amount
Model of Buying Behavior: Marketing stiumuli
1st step -Product, price, place, promotion
Model of Buying Behavior: Other Stimuli
2nd step-Economic, Technological, Political, Cultural
Model of Buying Behavior: Buyer's Characteristics
3rd step-Cultural, social, personal, psychological
Model of Buying Behavior: Buyers decision process
4th Step -Problem recognition, information search, evaluation, decision, post-purchase behavior
Model of Buying Behavior: Buyer's Decisions
5th Step -Product choice, brand choice, dealer choice, purchase timing, purchase amount
Consumer Buying Process
Problem recognition
information search
evaluation of alternatives
purchase decision
post-purchase behavior
innate needs
physiological needs for food, water, air, clothing, shelter, and sex. also known as biogenic or primary needs
Acquired Needs
Needs that are learned in response to one's culture or environment (such as the need for esteem, prestige, affection, or power). Also known as psychogenic or secondary needs.
Trio of Needs
1. Power
// individual's desire to control environment
(thermostat, AC, land, fence)


2. Affiliation
// need for friendship, acceptance, and belonging
(greek life, puppy, social media, dating app, clothing brand)


3. Achievement
// need for personal accomplishment
// closely related to egoistic and self actualization needs
(jewelry, good grades, sports supplements)
Maslow's Hierarchy of Needs
(level 1) Physiological Needs

(level 2) Safety and Security
// protection, order, stability

(level 3) Social Needs
// affection, friendship, belonging

(level 4) Ego Needs
// prestige, status, self esteem

(level 5) Self Actualization
// self-fullfillment
Consumer Buying Process: Problem Recognition
first stage of consumer buying process

innate needs, acquired needs, trio of needs, maslow's hierarchy of needs
Consumer Buying Process: Identification of Needs (information search) is influenced by:
// the ability to recall past experiences

//the consumer's confidence in recalled information

// the costs of collecting more information
Consumer Buying Process: Identification of Needs (information search)
information search:

.. internal sources (stored in memory)
// most reliable


.. external
~ group sources (asking)
~ marketing sources
~ public sources


.. experimental sources (trial)
// most valuable
//because it turns external to internal
.. camping at store, test drive car
Consumer Buying Process: Evaluation of Alternatives
.. can be a single criterion or multiple criteria
.. multiple criteria typically are not equally weighted in a decision
.. consumers' evaluations are often incorrect due to inexperience or bias

// company alternatives
// doing analysis

.. Alternative Evaluation:
.. product/service features or attributions
.. importance weights
.. decision method
// compensatory v non-compensatory

*price is always an attribute
Consumer Buying Process: purchase decision
step 4 // which is actually a series of decisions

.. what decisions might be made when purchasing a product

.. specific product features (options)
// car, phone, insurance

.. where + when to make purchase
// Where: online, gas, groceries
// When: Seasonal, Perishable

.. How to take possession:

.. Method of Payment
// car, going out to eat, etc.
Consumer Buying Process: postpurchase behavior
The stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction

MOST IMPORTANT STAGE

.. postpurchase doubt is common because each of the alternatives considered has both advantages and disadvantages

.. doubt typically increases with:
// the importance of the purchase
// the degree of similarity between the item selected and the item rejected

..marketers can help reduce doubt by:
// reassuring buyers through ads and personal communications
// providing quality post-sale service
why are movie sequels not as good as originals?
// over-advised, overhyped, lead to expectation

// advertise more for bad movies (because you know word of mouth won't be as good for it)
postpurchase evaluation
determining whether a purchase has been a satisfactory or unsatisfactory one

consumer satisfaction:
// expectancy gap theory
.. level of satisfaction = actual performance - expectations

.. postive gap: happy, negative gap: sad
Types of decision making

(just name the three types)
routine, limited, extensive
expectancy gap theory
.. level of satisfaction =
actual performance - expectations

.. postive gap: happy, negative gap: sad
Types of decision making: Routine
.. low involvement (almost subconscious)
.. few, if any, alternatives considered

// most supermarket items

habitual examples: deodorant, coffee
Types of decision making: Limited
.. medium involvement
.. several alternatives considered

// example: small household appliances
Types of decision making: Extensive
.. high involvement
.. time and effort spent
.. information search and alternative evaluation

// example: automobile purchase, house, college, surgery


most correlates with cost but not sometimes
(prom dress shopping: doesn't cost too much but it's super meaningful so you will consider tons of alternatives anyways)
Evaluation of Alternatives: Attribute Sets
universal set
.. every prospective set and item

retrieval set

evoked set
correlational inferences
associations (positive or negative) between two attributes
// ex: tall people are..

positive association:
.. the better the look of the car, the better the performance

negative association:
.. the higher the cost of a car (negative), the better its performance (positive)
.. example: ice cream study

ex: the better look of the car, the better the performance
country of origin effect
The positive or negative perception of firms and products from a certain country.

germany makes good:
.. automobiles, beer, and?

the good:
.. swiss watches, japanese electronics, brazilian soccer, russian vodka and hokey,

the bad:
.. finish/english food, chinese toys, and?
Consumer Bias Issue: Heuristic
used to ease cognitive effort
.. (a shortcut in decision making)

.. example: instead of comparing MP3 players on all the features (attributes), one might use a heuristical rule
// consider all under $100, buy ipod if available, or else one with most memory

heuristics can result in faulty evaluation methods called bias
Consumer Bias Issue: Representivesness
.. stereotyping in which prior probabilities are ignored

EXAMPLES:

.. ad shows mom fixing Ovaltine for kids who chorus "more ovaltine please". Bias occurs if viewers believe, "Mothers care about the health of their children, so Ovaltine must be healthy"

.. Loreial: "still worth it". people think higher price means better quality so you price higher and use negative correlation for effect
availability bias
the tendency for people to base their judgments on information that is readily available to them

examples:
.. a consumer consideres purchasing a home security system after a coworker reveals her home was broken into
.. consumers trying test food/beer/etc that has been advertised to them recently


****recently, vividness : two most important!!
anchor and adjustment
first information becomes basis from which we adjust based on new info

// often we don't adjust enough
// most common example in marketing
..using retail/sticker price as an anchor for determining what is of good value
.. sales
.. informational pricing


lecture examples:
. "what is the population of turkey? 7 million?" then people guess around 7 million because it's now been ANCHORED
.. "Which is better, a coat that was $125 and is marked down to $70 or a coat for $75 when others say it is $125?
Which stage of the production life cycle targets risk takers?
Introduction
Competition from the outside- sales/ profits decline
Decrease
What was used as an example of a technology driver?
Corning Glass
In which of the Product Life Cycle stages does competition from within the product class decrease and "laggards" are targeted?
Decline
In which of the Product Life Cycle stages does the pioneer (first in the product category) make efforts to stimulate primary demand?
Introduction
In class, what was given as an example of an innovation that had a diffusion advantage because it is "easily observed"?
Smart Watch (Apple Watch)
What is the first step in the new product development process for a single product?
Idea generation
What is a major consideration with sustainable development?
Ensuring that growth in the present doesn't sacrifice future opportunities
One of the ways to foster economic growth and safety at the same time is by doing what?
Target "green" segments
One of the largest challenges of sustainable development is?
Conflicting interests
What was the main purpose of the "Sustainability and Consumption" article?
To raise the salience and importance level of the issue
According to the authors of the "Sustainability and Consumption" article, what type of advertising was described as "dreamlike"?
Image-based advertising
According to the "Happiness" class discussion how did Sean Achor say we should view our jobs?
As a career or a calling
What was mentioned by a student as an "innate need"?
Sleep
The amount of time spend in the information search and alternative evaluation stages is dependent on the buyers' level of ____________
Involvement
Generally, the most important group influence is?
Family
What are sales and profits doing during the product life cycle stage where role models (who influence others) are targeted?
Growing
When a company introduces additional items in a given product category under the same brand name, this is called a ___________
Line Extension
What is needed due to the perishability of services?
A recovery strategy and flexible pricing
According to the Competitive Advantage of Nations model, which condition hurts national competitive advantage?
Less Demanding Customers
Which of the global market entry strategies would you use if you wanted to generate revenue flow with little added investments?
Licensing
Which global market entry strategies would you use if you wanted to learn about a new market environment?
Joint Venture
What is a limitation of Hofstede's Cultural Typology?
It ignores subcultures, demographics, etc.
In what type of culture would one find ads featuring groups of people?
Collectivist cultures
Which would view is "Think globally, act locally"?
Geocentric
The fundamental asset underlying brand equity is________________?
The value of the customer relationship the brand creates
The fastest growing licensing category is _________?
Corporate brand licensing
What is a desirable quality for a brand name according to text?
Be suggestive about product benefits, Distinctive, easy to pronounce, recognize and remember, translate easily into foreign languages
The main advantage of a retailer using its own private brand is ___________?
Higher profits
Private label brands account for about what % of U.S. store sales according to the text?
20%
What is a reason cited in the text for not branding?
When you can't guarantee consistent quality
According to the text, what is something marketers can do to reduce a consumer's information search cost?
Provide point of purchase information
Which marketing mix component is most often used to stimulate "need recognition"?
Promotion
The most basic cause of a person's wants and behavior learned while growing up is _______?
Culture
The most important determination of social class is _______?
Occupation
Suppose a Mizzou tennis player buys a pair of shoes she saw Serena Williams (tennis star) wearing on TV. Which type of influence is this?
Aspirational group
Example of firms with advantages of availability bias
Fast food
According to what we know about learning, which of the following is a way for marketers to increase demand for their offerings?
provide a good consumer experience to reinforce future purchase, use motivating cues, associate offering with strong drives
Ideally, companies that seek international growth evolve over time into which of the following orientations?
Geocentric
According to the desirable qualities for a brand name mentioned in the text, which of the following is not a good brand name?
I can't believe it's not butter (vegetable oil spread)
The perishability of services requires that which of the following is needed?
a recovery strategy and flexible pricing
Which of the following is the most important thing a product can have for it to survive?
A distinctive benefit
Which of the following is an example of a service that has some success in marrying customer and employee interests?
Southwest Airlines
New product development is important for which of the following reasons?
higher profitability, survivability, affects our society, the way we live
Which of the following is a demand condition that when at a high level, makes a national market more attractive?
Demanding customers
Which of the market entry strategies has the disadvantage that it may help to create a strong competitor?
Licensing
Which of the following characteristics of services results in situations where one customer can affect the experience of another customer (e.g. a student talking and distracting other students in the classroom)?
simultaneous production and consumption
Which of the following is the most frequently used marketing stimulus used to trigger "problem/need recognition" with consumers?
Promotion (advertising)
According to the text, one key to successful international marketing is which of the following?
understanding the differences between national cultures
Which of the following is a measure of a brand's equity?
the extent to which customers are willing to pay more for the brand
Which of the following is difficult for marketers to uncover?
Motives
One may think of all ________ as having tangible and intangible components.
Offerings
External Markets for Virtue
.. some customer segments may reward CSR initiatives while others don't
.. benefit segmentation : CSR most important vs Price most important
.. Favorable response to CSR (profitability)
// dependent on fit between consumer values, firm values and specific issue initiative
// must be seen as authentic
extremely important!
sustainable development
Sustainable Development is about:

// balancing economic growth and social needs with the natural environment
.. ensuring that growth in the present does not adversely sacrifice future opportunities
.. sustainability within a local area and a global level
.. sustainable development is now a very popular topic, with the majority of the focus around climate change due to carbon emissions
.. in response to this popularity, large organizations such as governments and corporations aim to be "sustainable"


**Worrying about the environment is a luxury, other countries don't get to worry about the environment because they're so focused on other needs.
Sustainable Development:

Inherit Complexity of the Problem
1. inherit complexity of the problem

.. balancing short-term private benefits with a long-term interests

.. an over-focus on one area may have significant negative impacts on others

.. solutions require long-running, transformational changes
// humans are good at handling crisis (we come together) but not good at long-term problems

.. common definition: whether development through industrialization itself should be referred to as "sustainable"
Sustainable Development Challenges:

Conflicting Interests
Balancing short-term private benefits with long-term interests

balancing self-interest with interests of others

.. corporate interests (short term v long term gain, economic v social) // ex: stocks

.. national interest (resources, trade)

.. personal interests (economic, quality of life)

.. interest groups with varying perspectives and agendas

//recognized to change but still not change
China v US potentially biggest problem
US consumes 10x more than china (over-consumption) but china needs to control over-pollution w 3 billion people
Sustainable Development Challenges

Post-Modernization Emerging Factors
There have been change in the past 50 years that have profoundly impact Sustainability
.. the global impacts of large-scale industrialization and materialism
.. population growth and increased life expectancy, especially in the developing world
.. globalization of trade and transport
.. impacts science and technology exponentiation
.. increased corporate influence in relation to government and private citizens
Sustainable Development Challenges
1. inherit complexity of the problem
2. conflicting interests
3. post-modernization emerging factors
Marketing and Sustainablilty
within current "pro-growth" economic paradigm

.. target and grow "green" segments
// those sensitive to environmental effects of company + brand actions
// examples: P+G "products made in missouri" campaign

.. might be doing "green" choices b/c of cost/lifestyle/personality

.. simplifies: people who reuse things
.. b/c economic necessity, wanting a simpler life, going green, etc.
Materialism
devotion to material needs and desires, to the neglect of spiritual matters; a way of life, opinion, or tendency based entirely upon material interests

.. a value that guides conduct especially consumption behavior
.. often has a negative connotation
// virtually every major religion views consumption as conflicting with religious fulfillment
Challenges of increasing "Green" Segments
.. attempts "green washing"
.. what is used to judge sustainable practices?
.. ex: kimberly clark (23rd overall on Domini 400 socialism), Altna: sells products that kill people but yet the company does sustainably relevant things

.. index (DS400): social responsibility mutual fund

.. shock/fear ads
Money Does Not Buy Happiness
materialism negatively associated with:
..self esteem and well being
..quality of life
..satisfaction with life in general

actually attaining one's materialistic aspirations does not increase well-being
..extrinsic nature may be explanation

marketing doesn't create needs it just satisfies them
What was the main purpose of the article?
to show the differences between consumer behavior and depict what marketing can do influence a more eco-friendly environment
What are the different reasons why people buy things?
the joy of shopping

mood repair
..shopping to feel better (shopaholic)

construct your identity
..to you, others, to view yourself a certain way
..identity construction

socially communicate to others
.."I go to Mizzou"

Utilitarian
..useful, purposeful
Why do the authors see the social/cultural reasons for consumption as being particularly important?
it's what marketing can do to help the environment. the social/cultural reasons for consumption are at our very core of why we buy things so marketing can tap into that and have us buy more sustainable products?
Who has the roles and responsibilities of a change toward more sustainable consumption?
business/industry
media
everybody/everywhere
government
consumers
how do the authors view image-based advertising?
dream-like, fantasize,

so we over-consume
What do you think about the idea of creating "brand-free zones"?
we have them now:
schools, polling places, religious places, hospitals
Definitions of Happiness
•Subjective Well-Being
-Satisfaction with life (what I think about my life)
+-Positive mood (how positive I feel)
--Negative mood (how negative I feel)

•PERMA MODEL
-Positive emotion
-Engagement
-Relationships
-Meaning
-Accomplishment (On your terms)
PERMA MODEL
-Positive emotion
-Engagement
-Relationships
-Meaning
-Accomplishment (On your terms)
workplace examples of infusing positivity into your surroundings (happiness lecture)
google scooters, Patagonia surfing, coors fitness,
Steps to happiness at work
1. Start believing
2. Rethink work as calling
3. Practice positivity
4. Use failure to fuel success
5. Focus on small goals
6. Practice the 20 second rule
7. Seek social support
The Future of Marketing
•Implications
-Consumers will spend more on services, less on things
•Providing personal, experiential and social benefits
-Offerings and Communication focused on substantive relationships
•Family, friends and pets

Superficiality in Marketing/Consumer Behavior Will Never Disappear altogether
% of happiness is determined by external world?
10%
Happiness Lecture: Power of Meditation
metacognition
#1 downloaded app was on meditation, meditation rooms in businesses
Happiness Lecture: the power of now
nothing can hurt us in the present
Happiness Lecture: acts of kindness
cortisones released when helping others
New Zealand is known for ____________ culture (2)
Masculine expression and adventure tourism
Aspects of Eco Tourism (add more?)
1. local economies
.. more money to the people
Ecotourism in NZ
.. birdwatching + adventures
.. cruises day and night
// farms, nature + hiking
NZ's biggest export and to whom
dried milk sent to china
(discussion):
ecotourism and adventure tourism is meant to
enhance a destination
ecotourism is a top money maker of __________ of ___________ countries
83% of developing countries
ecotourism is growing 3x faster than _________________
the tourism industry as a whole
ecotourism options put up to ________________% of money into local economy
95%
examples of how we live in a global world (class discussion)
1. refugees impact every country. finding places to house them, policy with helping them, etc.

2. foldable phones // something that starts across the world will still impact our products

3. European Union technology limitations on privacy (apple, microsoft, etc.), it stops development and innovation
.. europe is ahead of us in consumer protection but consumer protection is a luxury worry. we only get to worry about it because we don't have more pressing issues like famine.
lack of regulation in the beginning does what
helps innovation and aids small companies enter the market.

ex: NZ adventure tourism is one of the best in the world but it has no regulations so a lot of death, but they get to be innovative.
International companies origin:

Zara
HM
BMW
Nokia
Gucci
LV
Nestle
Panasonic
Samsung
Zara: Spain
HM: Sweedish
BMW: Germany
Nokia: Finnland
Gucci: Italain
LV: France
Nestle: Switzerland
Panasonic: Japan
Samsung: South Korea
Global Marketing
describes a company's effort in applying/adopting marketing strategy/tactics to create an integrated global marketing strategy

// not a new concept
//exemplified by big brands integrating
Why international business?
-increase sales
-gain new resources and knowledge
...raw materials, human capital, etc.
-reduce risk
global marketing strategy (components)
•Global market participation
•Marketing mix development
•4 P's: adapt or standardize?
•Concentration of marketing activities
•Coordination of marketing activities
•Integration of competitive moves

dawn dish-soap releases a product in France, the marketing won't affect America. However with TECHNOLOGY BRANDS and other important innovations, they have to create a global marketing strategy because the launch in each country is seen everywhere and is interconnected.
highly interdependent
Single Country Marketing Strategy (components)
•Target market strategy
•Marketing mix
•Product•Price•Promotion•Place
International Business Challenges (all 7)
.. language
.. trade, policies, tariffs,
.. legal difference
.. political issues
.. geographical
.. culture
.. currencies
International Business Challenge: Currencies
strong dollar hurts US companies but helps consumer/international markets

*you want a weaker currency to sell more!
THE IMPORTANCE OF GOING GLOBAL (3 facts)
•For U.S. companies, 70% of total world market for goods and services is outside the country
//Coca-Cola earns 75% of operating income and two-thirds of profit outside of North America

•For Japanese companies, 90% of world market is outside the country

•94% of market potential is outside of Germany for its companies
International Business Challenge: Culture
what is right in one country is wrong in another (gay marriage, multiple wives, bowing v shaking hands, etc)
International Business Challenge:
Political and Legal Issue
Political Systems: democracy v dictatorship

Economic Systems: market economy, command economy, and mixed economy

Political Instability

example: US helps our own companies
.. lack of regulation (tarrifs, etc)
.. manipulate dollar down
.. buying our products
... ex: military weapons (bowing) when company was down
International Business Challenge: Tariff Barriers
countries use tariffs as protection to own country's industries and workers

// bad for consumers, makes imports more expensive but helps local creators instead of foreign ones (boosts USA sales)

class discussion: should we keep tariffs?
.. China has been only allowing imports if we hand over the technology we used to make the product so they can then copy. they sit and wait for us to bring cool products over.
.. might depend on relationship with country
.. tariffs might not be the best way to do this?
should we enact what China is doing?
worldwide citizen explanation (class discussion)
we are all citizens of the world so we should want to help China and when China wins we all win. But we also have a loyalty to our own country and we want what is best for us first. The internal battle we deal with regularly.
managing global marketing program (5)
.. branding
.. product adaptation
.. promotion, advertising and selling
.. pricing
.. distribution
advantage of global branding
economy of scale

greater brand awareness

.. but you might have to adapt your product most of the time
product adaptation
adapting a product to meet local conditions or wants in foreign markets

ex: disneyland is only slightly different and adapted for "Euro Disney"


do not change communication:
do not change product: straight extension
adapt product: product adaption
develop new product: product invention

adapt communication:
do not change product: communication adaptation
adapt product: dual adaptation
develop new product: product invention
promotion, advertising, and selling
legal restrictions:
.. islamic law bands alcohol advertising
.. US bans cigarettes advertising on TV

sense of humor or sexual appropriateness:
.. Pepsi's "Pepsi Brings You Back To Life" ad translates to bringing ancestors back from the dead in China. Have to change so it doesn't insult the culture.
Consumer Buying Process
1. Need Recognition
2. Information Search
3. Alternative Evaluation
4. Purchase Decision
5. Postpurchase Behavior
post-purchase evaluation equation
performance - expectations = level of satisfaction
recency effect
type of availability bias:

you will remember something that happened recently (IRS convicting harder punishments on tax fraud before taxes are due in April)
vividness effect
type of availability bias:

a single vivid experience is highly memorable and available to the mind for what could be an indefinite amount of time.

aka flashbulb memories

ex: seeing a plane crash, being involved in a riot, watching a bizarre event
law of small numbers
the expectation that information obtained from a small number of people represents the larger population

we tend to make sweeping generalizations based on limited experience (ex: all white, male, tall, marketing professors are ugly)
International Marketing
the marketing of products outside one's domestic market

nearly 90000 multinational corporations
a Global Marketing Strategy is developed in order to address the following
Global Market Penetration

Coordination of Marketing Activities

Standardization v Adaptation

Concentration of Marketing Activities

Integration of Competitive Moves
Global Market Penetration
the extent to which a company has operations in major world markets
coordination of marketing activities
the degree to which global, marketing-mix activities are planned and executed interdependently
Standardization versus Adaptation
the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets
Concentration of Marketing Activities
the extent to which activities related to the marketing are performed in one or only a few country locations
Integration of Competitive Moves
the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent
Ethnocentric
believing in the superiority of one's own ethnic and cultural group, and having a corresponding disdain for all other groups

(domestic companies) // opportunities outside of the country may be ignored

leads to standardized or extension approach - the belief that products can be sold everywhere without adaptation
international companies
ethnocentric companies that conduct business outside the home country
Polycentric
take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

the opposite view of ethnocentrism

the belief that each country you do business in is unique

this assumption allows each subsidiary to develop its own unique marketing strategies in order to succeed

leads to a localized or adaption view that assumes products MUST be adapted to succeed

*multicultural
multicultural company
often used to describe polycentric companies
Regiocentric
a region becomes the relevant geographic unit

management's goal is to develop an integrated regional strategy
ex: NAFTA, EU

may be viewed as a variant of the multinational view (polycentric)

ex: Ripley is a Santiago, Chilean based retailer that has stores in Columbia and Peru. South Africa is their relevant geographic unit.
Geocentric
views the entire world as a potential market and strives to develop integrated global strategies

these companies are known as global or transnational companies

serves world markets from a single country or sources globally for the purposes of focusing on select country markets

tend to maintain their association with a particular headquarters country (ex: Harley-Davidson serves world markets form US)

blurring national identity (STATELESS, Toyota is getting close to this)

"world view" : synthesis of ethnocentrism and polycentrism

seeks to build a global strategy that is responsive to local needs and wants
global or transnational companies
geocentric!!
the geocentric orientation
"think globally, act locally" philosophy
Power Distance Index
measures power inequality between superiors and subordinates within a social system

the degree to which the less powerful members of a society accept and expect that power is distributed unequally

how do we handle inequalities between people?
Individualism/Collectivism
the degree to which a person believes that people should be self-sufficient and that loyalty to one's self is more important than loyalty to team or company

Individualism: individuals are expected to take care of only themselves and their immediate families

collectivism: preference for a tightly-knit framework in society in which individuals can expect their relatives or members of particular ingroup to look after them in exchange for unquestioning loyalty.
Masculinity vs. Femininity
Theory of the relationship between gender and work roles.

In masculine cultures, sex roles are sharply differentiated and traditional "masculine values" such as achievement and the effective exercise of power determine cultural ideals;

in feminine cultures, sex roles are less sharply distinguished, and little differentiation is made between men and women in the same job.
Geert Hofstede's Cultural Typology
1. Power Distance Index
2. Individualism v Collectivism
3. Masculinity v Femininity
4. Uncertainty Avoidance Index
5. Long Term Orientation v Short Term Normative Orientation
in business it's referred to as normative (short term) v pragmatic (long term)
6. Indulgence v Restraint
Market Entry Strategies
various tactics that managers use to enter foreign markets
Licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

can generate revenue flow with little investment

good for company with advanced technology, a strong brand image, or valuable intellectual property

// contract manufacturing
// franchising
Strategic Alliance Three Characteristics
the participants remain independent subsequent to the formation of the alliance

the participants share the benefits of the alliance as well as control over the performance of assigned tasks

the participants make ongoing contributions in technology, products, or other key strategic areas.
greenfeild investment
constructing new operational facilites in a foreign country
advantages of direct investment, acquisition or ownership
may provide instant market access

offers greater control than other market entry methods
attributes that influence industry development in a particular country
factor conditions
demand conditions
related and supporting industries
firm strategy
structure
rivalry
Factor Conditions
- refers to a country's endowment with resources
- human, physical, knowledge, capital, infrastructure
Demand Conditions
the nature of home demand for the industry's product or service is important because it determines the rate and nature of improvement and innovation by the firms in the nation

// market size

// demanding customers

// market sophistication
high local rivalry results in _________________
less global rivalry.

local rivalry forces firms to move beyond basic advantages that the home country may enjoy such as low factor costs. In the same way, tougher local regulations help a nation's industry by forcing them to succeed in a tougher environment.
Social Factor
family, reference groups, roles/status
Cultural Factor
culture, subculture, social class
Personal Factor
Age and Life Cycle Stage, Occupation, Economic situation, Personality and self-concept
Psychological Factor
motivation, perception, learning, beliefs and attitudes
The Family Type
part of the social factor

family is the most important group influence

trend: wives having more influence on purchases outside home (eg: cars)
trend: husbands having more influence on purchase decision (eg: food)
trend: children having a stronger influence on family buying decisions (eg: vacations, cars, cell phones)
Reference Groups Type
part of the social factor

ex: business professionals often wear suits, professors often dress more informally

opinion leaders are people within a group that exert special influence. (ex: pay attention to Warren's stock choices)
Roles and Status
part of the social factor

the person's role and status within a group may influence buying behavior

ex: now that jamal is promoted to the IT Manager position he considers that owning the best smartphone technology is required of him to set a good example for the team he leads
Cultures Type
cultural factor

the set of basic values and behaviors shared by members of society

the most basic cause of a person's wants and behaviors learned while growing up

trend- in the US the cultural shift toward greater health concerns has created huge opportunities for health and fitness companies
Subcultures Type
Cultural Factor

smaller groups within a culture that have shared value systems

trend: US Latino market is the fastest growing subsegment of the US population and one in which, because family shopping, children have more influence in which brands are bought.

example: growing age population
Social Class Type
Cultural Factor

social classes are society's ordered divisions whose members share value and behaviors (ex: upper, middle, working and lower class)

they are determined by many factors including income, education, and wealth with occupation being the most important determinant.
Age and life-cycle stage type
personal factor

over people's lifetimes, their needs and purchases change

ex: when charlene and james became parents with their first child, they decided they needed a bigger automobile
occupation type
personal factor

ex: Dickies makes rugged work clothes for bluecollar workers, ex: construction
economic situation type
personal factor

ex: maxwell house coffee might tarket lower-income consumers who may not be able to afford starbucks
personality type
personal factor

personality refers to relatively enduring psychological characteristics ex: highly-social extrovert

marketers often try to match brand personality (see chapter 3) to that of their target market's personality

sometimes it can be difficult to identify a segment by personality. Ex: how would one determine the number of "shy introverts" in the US marketpalce?
Motivation Type
Psychological Factor

motive: a need that is sufficient to trigger the person to satisfy it

motives are often subconscious and difficult to uncover

ex: joel told people he bought a sports-car for the style but it's really because he wants to impress others
perception type
Psychological Factor

the process people use to select, organize, and interpret information

selective attention: people screen out most information so you must strike a chord with target audience

selective distortion: the tendency for people to interp. information in a way that conforms to their prior beliefs
learning type
Psychological Factor

changes in behavior arising from experience. a drive (strong internal stimulus) becomes a motive when it is directed toward a stimulus object (something that might satisfy the drive or need). Cues are stimuli that determine when, where, and how a person might respond

marketers can increase demand for products by associating it with strong drives, using motivating cues and providing a good consumer experience that will reinforce another purhcase
beliefs type
Psychological Factor

a descriptive through about something

"I think the newest Tesla auto is too expensive for me"
Attitudes type
Psychological Factor

a person's relatively consistent evaluation toward some thing or idea. example: "one should always pay more for good furniture"

promotion can counter some beliefs if they are incorrect, but attitudes are hard to change.
pricing
"one piece fits all" strategy

adaption of polycentric pricing

geocentric pricing
distribution
sell the product to a trading company

set up a company's own distribute network

joint venture / locate company sales agent in the target market / contract with local independent sales agents
Sales and Profit Life Cycles
introduction, growth, maturity, decline

// birth, growth, flattening out, decline

sales and profits correlate on the life cycle // the stage is determined by what's happening in sales and profits
Product Life Cycle and Diffusion:

introduction stage
the PLC stage in which a new product is first distributed and made available for purchase

first: pioneer
.. sales are low (only player)
.. primary demand: trying to create want for
this product
.. when other products enter, then it's growth

examples:
.. Motorola pager when it first came out
.. foldable phones
.. self-driving cars are PRE-INTRO because not
available
.. google glass is introduced but few can afford

Introduction: first stage
.. innovation/new product offered
.. new product class
.. sales/profits are low
.. marketing effort
// stimulate demand for product type
// target "innovators" (risk-takers who buy new products first)
target innovators
risk-takers who buy new products first during introduction stage
Life Cycle Stage: Growth
sales/profits grow
.. competition expands
.. marketing effort
.. differentiate product
.. stimulate demand for brand (secondary demand)
.. target "early adopters" ("imitators")
.. emulate innovators
.. have major influence on others

ex: other companies introduce product offerings and product/service fees decrease while sales grow. Google Glass now emphasizes their relatively lightweight and comfort.

marketing effort: differentiate product significantly
secondary demand: demand in your brand

examples:
.. *BIRD SCOOTERS*
.. wireless headphones (airpods)
.. streaming video content
.. google home v alexa
.. apple watch/fitbit "wearables" (still growing)
.. peer-to-peer driving
.. social media
.. cannibas
.. kureg
Life Cycle Stage: Maturity
sales plateau/product is familiar
.. competition
.. increases outside product class
.. decreases within product class
.. marketing effort
.. find new uses
.. target "laggards"
.. slow to accept change
.. low budget/costs

example: smart glasses are being "cannibalized" by growing smart clothing and smart contacts sales. Now, desperate to find anyone who'd buy them, they target old marketing professors but only with cheap email spam messages.

ex:
.. soft drinks in decline
because of sparkling water
.. landlines
.. cigs
.. cable TV
.. newspaper
.. DVD
.. *****taxi's*******
Adopter Categories
Innovators (2.5%)
Early Adopters (13.5%)
Early Majority (34%)
Late Majority (34%)
Laggards (16%)

every industry is different, more of an estimate
Innovators
.. 25% of population
.. venturesome
.. very eager to try new ideas
.. acceptable if risk is daring
.. more cosmopolite social relationships
.. communicates with other innovators

have money at the beginning
1600 for first flat screen TV
2600 for foldable phones
Early Adopters
13.5% of population
.. respected
.. more integrated into the local social system
.. the persons to check with before adopting a new idea
.. category contains greatest number of opinion leaders
.. are role models


very influential
ex: a popular girl in my sorority buys something so I'm more inclined to buy it now, too.
Early Majority
-34% of population
-deliberate
-adopt new ideas just prior to the average time
-seldom hold leadership positions
-deliberate for some time before adopting
Late Majority
-34% of population
-skeptical
-adopt new ideas just after the average time
-adopting may be both an economic necessity and a reaction to peer pressures
-innovations approached cautiously
Laggards
-16% of population
-traditional
-last people to adopt an innovation
-most "localite" in outlook
-oriented to the past
-suspicious of the new

older people who don't wanna deal with something new

ex: old people getting into computers, we are all laggards when we want to be
Factors that speed diffusion of an innovation
1. Large Relative advantage
.. (smart phone, flatscreen, just so advanced)

2. High level of compatibility
.. (music streaming, GPS w cars, uber w apps)

3. Easily observed
.. (BIRD SCOOTERS, wearables)

4. Less complex
.. (kureg)

5. Easy to try "triability"
.. (netflix offered trial, anything on the internet)

it's how WE adopt it! personal!
Stages in the individual's adoption process
1. Awareness
2. Intrest
3. Evaluation
4. Trial
5. Adoption (or Rejection)

-Advertising is most important at first, personal choices are most important at the end.
Awareness
consumer is first exposed to the product innovation

ex: david sees an ad for a new digital camera in the newspaper
interest
consumer is interested in the product and searches for additional information

ex: david reads about the camera on the website and then goes to the camera store near his office and has a salesman show him the camera
evaluation
consumer decides whether or not to believe that this product or service will satisfy the need - a kind of "mental trial"

ex: after talking with friend David decided that his camera should be able to provide him with the photos he needs to use in his work. He also likes the fact that is uses "standard" floppy disks for storage.
mental trial
consumer decides whether or not to believe that this product or service will satisfy the need

part of the evaluation stage in the individual's adoption process
Trial
consumer uses the product on a limited basis

ex: since camera connot to be "tried" like a small bottle of new shampoo, David buys the camera from a dealer offering a 14-day full refund policy
Adoption (or rejection)
if the trial is favorable, consumer decides to use the product on a full, rather than a on a limited basis - if unfavorable, the consumer decided to reject it

david finds that the camera is easy to use and the results are excellent, consequently, he keeps the digital camera.
the relative importance of different types of information sources in the adoption process
real take away of this process:
.. in the beginning advertising is most important but in the process PEOPLE (friends, family) are most important (potential selling to close sale)
the importance of new product development
1. Survivability
(Provides sustainable competitive advantage)

2. Key to profitability
(Apple stock shoots up with product
announcements)

3. Capacity to change lives
the importance of new product development:

key to profitability
.. SC Johnson made more profit in the first year of Glade plug-in sales alone then all the other products they offer combined

.. apple's stock shoots up when new product is launched, their business is dependent on new products
the importance of new product development:

survivablity
provides sustainable competitive advantage + long term advantage

keeps you in the field

ex: apple, key in keeping profitable for a long time
the importance of new product development:

capacity to change lives
better products, this is super important from marketing is that we get to change lives
What is a new product? (overview)
-new to the world products

-new category entries

-additions to product lines

-product improvements

-repositioning
new to the world products
// aka innovation
// some people only see a new product as this

failure rating of 80%, high risk high reward, but key to profitablity

.. red bull energy drink, in-line skates, kevlar, word-processing software
new category entries
not new to the world but the first time WE'VE done it!

.. hewlett-Packard PCs, Hallmark gift items, Discover Card
additions to product lines
line extensions or flankers

// old spice added shampoo and other items, branching out from just deodorant
product improvements
Gogurt, PS3, windows 10, nissan altima

-10-20% failure rate
Repositioning
Arm&Hammer baking soda // went from just cooking to nose being used for deodorizer in house, etc.
Breakthrough innovations that changed our lives
personal computer, laser surgery, SLICED BREAD, the internet, refrigeration, GPS, WiFi (giant list)
The excitement of winners
uber, spotify, netflix, twitter, tinder, flat screen TV, Fiji water, lululemon, starbucks
Why does a firm need a new products strategy?
-to chart the group's/team's direction

-to set the group's goals and objectives

-to tell the group how it will play the game

**helps guide a new portfolio of products
// an overall strategy
contents of a new product strategy
-Focus
(a clear technology and market dimension that match and have a good potential)

-Goals/Objectives:
what the product(s) will accomplish

-Guidelines (time/quality/cost)
rules, requirements, time/quality, cost, etc.
Technology Drivers
Materials:
.. corning's glass (glass bowls to now tons of glass options)

Processes
.. deliotte & Touche's financial information analytical capabilities

People
.. a scientist, an engineering group, even a product management group

Facilities
.. kimberly clark's paper-making lines

Other
.. any strong competency
.. industry knowledge in the beer business
Mizzou's Technology Driver Examples
Processes: education, etc.
People: researches, instruction,
Facilitates: cornell

= coming up with the MBA program
Market Drivers
Customer group or resellers
.. ski shops, EU imports, Ford Motor Co

end users
.. all skiers, beginning skiers, professional skiers

end use (activity)
.. skiing, food manufacturing, etc.

others
.. mass customizing
// (focusing on everyone individually such as Courtyard, and Dow Jones Personal Journal), a competitor's customers, etc.


ex: Annheiser Busch advantage is their distributers. you can't sell beer directly so they have amazing distributor relationships and were able to get their product out quickly and in great quality on shelves to sell more because of distributers!
How firms develop new products ( 6 steps )
1. idea generation
2. concept testing
3. product development
4. market testing
5. product launch
6. evaluation of results
idea generation (overview)
consumer input

brainstorming

concept testing

product development

market testing
brainstorming
non-judgemental, fun, quantity over quality

.. groups work together to generate ideas
.. no idea can be immediately accepted or rejected
.. use strategic alliance partner
.. produce more + higher rated ideas
customer input
As much as 85% of new business to business products come from customers

Lead users modify existing products according to their own specific needs

.. like phillip knight that changed shoes to running shoes (ideas don't often come from a customer)

ex: has car, lead user (give good products to test)
concept testing
-Concept is a brief written description of the product

-Customers reactions determine whether or not it goes forward

-Triggers the marketing research process

// early so you haven't spent much money to develop the product

// written statements of new ideas, testing customers with it
product development
1. prototype
.. make model or surface blueprint and you test it with customers


2. alpha testing
.. testing internally
.. ex: microsoft to protect secrets


3. beta testing
.. testing externally
.. ex: google
.. advantage: faster to market
market testing
premarket tests:
.. conducted by research firms
-customers exposed
-customers surveyed
-firm makes decision

test marketing:
-mini product launch
-more expensive than premarket tests
-market demand is estimated

play around with it and make sure it's viable

ex: crystal pepsi introduced w/o market testing and it failed because of it
green consumption
Purchasing of products that are purportedly environmentally friendlier or less harmful than their alternatives; a model of environmental protection that relies on consumer choices to change the behavior of firms or industries rather than regulation
view of consumption:

rational choice and information processing
underlying assumption:
.. Consumers as rational, utility-maximizing decision makers
.. focus on individual consumers
.. consumption and its antecedents can be rationally determined

relation to sustainability in literature:
... Strong // main basis for "green" consumption literature

how to achieve sustainable consumption:
... Environmental concern leads to inclusion of environmental criteria in individual consumer decision making
.. pervasive environmental concern and aggregate behavior of many green consumers leads to more sustainable consumption (and production) patterns overall

roles and responsibilities of different social actors:
.. individuals: key locus of action for more sustainable consumption
.. Marketers: respond to consumer demand for greener products and services
.. Public policy: education of consumers, removal of barriers to individual green behavior
.. Social groups and entities: limited role

groups to which it appeals:
.. green marketers; policy makers seeking stimulus-response model of greening; environmentalists with natural science background; academics trying to establish green marketing in mainstream marketing literature

groups to which it does not appeal:
.. Radical, "deep green" environmentalists
.. academics interested in sociological/anthropological perspective
view of consumption:

anthropological
underlying assumption:
.. Consumption embedded in social and cultural practices
.. focus on the role of consumption in people's lives as individuals and groups

relation to sustainability in literature:
.. Weak // often seen as in opposition to, or neutral toward, concept of sustainability
.. sees sustainable consumption as a problematic concept with inherent tensions

how to achieve sustainable consumption:
.. All consumption has important social roles and purposes
.. sustainable consumption needs to take into account cultural and social aspects of consumption

roles and responsibilities of different social actors:
.. Existing social actors are resistant to change—wider social, economic, and political transitions are necessary to address sustainability;
.. Individuals: less emphasis on their actions
.. Public policy: could limit promotion of symbolic function of new consumer goods, could promote more sustainable ways of fulfilling social and cultural needs; limits imposed by other development goals
.. Marketers: may be unwilling to promote new ways of fulfilling social and cultural needs because of reduced growth potential
.. Civil society/media: promotion of civil discourse about redirection of social and cultural functions of consumption

groups to which it appeals:
.. Potential appeal to environmentalists and critical scholars of consumption seeking a richer conceptualization of sustainable consumption

groups to which it does not appeal:
.. Environmentalist with normative concerns and working within positivist framework; consumption scholars concerned with positive cultural aspects of consumption and who are unhappy with the normative approach to consumption
hedonistic consumption
underlying assumption:
... Consumption brings pleasure, often through act of shopping itself, through use or consumption, or through possession

relation to sustainability in literature:
.. Often seen in direct opposition to more frugal lifestyles advocated by environmentalists

how to achieve sustainable consumption:
.... Pleasure may stem from environmentally benign goods and from alternative shopping environments, as well as"exploration" of search for such goods
consumption as communication
underlying assumption:
.. consumption as a code for communication of status, taste, self-identity, social relationships

relation to sustainability in literature:
.. literature tends to neutral on links to sustainablity

how to achieve sustainable consumption:
.. shared experiences of sustainable lifestyles in families, groups, and communities, group identities and pressures promote more sustainable consumption patterns.
construction of self-identity through consumption
underlying assumption:
.. Consumption as means to construct psychological and social identity

relation to sustainability in literature:
... Literature tends to be neutral on links to sustainability

how to achieve sustainable consumption:
...Active construction of sustainable self-identities and lifestyles
Branding
...
Types of Brands
Manufacturer Brands
.. Green Giant, Del Monte

Private Distributor Brands
.. owned by reseller
.. Gerbes, Private Selection Green Beans, Great Value, That's Smart!, etc.

Generic Brands
.. "Green Beans"
brand
a name, term, symbol, design, or combination thereof that identifies a distinct products
branding overview:
it tells about the quality. we associate it.

he thinks generic brands don't exist anymore.
we don't brand vegetables because
we can't assure the quality
Private Distributor Brands Overview
owned by reseller
.. Gerbes, Private Selection Green Beans, Great Value, That's Smart!, etc.

.. they are growing a lot. 20% of all sales in stores.
.. private brands are the same as manufactured
.. when walmart recalls their PB they also have to recall Peter Pan PB
Keys to ensuring brand leadership overview
1. vision of the mass market

2. managerial persistence

3. financial commitment

4. relentless innovation

5. asset leverage
vision of the mass market
constant monitoring, MR of changing tastes
.. ex: pampers

invest heavily in R+D to appeal to mass market
high costs to ensure leadership
managerial persistence
committing effort over long time periods
.. high costs to ensure leadership
financial commitment
strong brands require high marketing costs

- new product development, marketing research and advertising

.. marketing and R+D are huge costs
relentless innovation
products must be updated constantly
.. Gilette: 20 new products in portfolio
.. P&G Look at Crest, Tide, etc.
asset leverage
using strong position in one category to establish leadership in another, related category

Ex: Coca Cola

soft drink to diet soft drink to other drinks (Coke 0)
.. brand extension: needs to be related
.. ex: coke bought Disasni but didn't make it "Coke Water"
.. ex: Old spice went from one product to a lot
brand management challenges overview
-brand proliferation

-media fragmentation/decreased ad efficiency

-smarter/variety-seeking consumers
brand proliferation
growth in new competitors and line extensions

ex) crest toothpaste
media fragmentation/decreased ad efficiency
-growth in # stations (newtork doesnt buy enough)
-growth in ad clutter
-technologies to avoid advertising (tivo)
smarter/variety seeking consumers
- more information available
.. computer reports, websites
- successful new product development
.. consumers trusting of new brands and product extensions
.. dilutes brand equity (ex: Tide)
Building a Strong Brand: Four Steps overview
1) Establish Brand Identity (Who are you?)

2) Design brand meaning (What are you?)

3) Elicit proper brand imagery (What do I think or feel about you?)

4) Create active, loyal relationship between brand and customers (What about you and me?)
establish brand identity
STEP 1 in building a strong brand!

Who are you?

create brand salience
.. brand awareness through linking brand elements to product categories (usuage situations)
.. important to have brand awareness in a variety of conditions


.. depth of brand awareness
> likelihood and ease with which brand comes to mind
.. ex:tropicana: oj, fresh



.. breadth of brand awareness
> range of purchase and usage situations in which brand comes to mind
> related to product category level
.. ex: Tropicana: I will think of oj at bkfast, snack after school, adverstise different usage situations to expand breadth
.. ex: got milk campaign broadened the use of milk
brand salience
(part of) STEP 1 in building a strong brand!

.. brand awareness through linking brand elements to product categories (usuage situations)
.. important to have brand awareness in a variety of conditions


how often is the brand evoked in various circumstances
design brand meaning
STEP 2 in building a strong brand!

What are you?
.. link desired tangible/intangible brand association with product characteristics

.. defining brand performance is paramount
> primary ingredients or second features
>product reliability, durability, serviceability
>service effectiveness, efficiency, empathy
>style and design
>price

**you will gain advantage if you can advertise great performance
elicit proper brand imagery
STEP 3 in building a strong brand!

what do I think or feel about you?
.. abstract associations with brand intangibles
>brand meeting customer's social needs
>brand meeting psychological needs
>personality, values of brand


intrinsic properties where the brand has a personality and it taps into your feelings
create active, loyal relationship between brand and customers
STEP 4 in building a strong brand!

what about you and me?
.. brand resonance: a consumer's intense and actively loyal relationship with a brand
.. psychological bond between the consumer and brand
// behavior loyalty (how often it is purchased)
// attitudal attachment (personal attachment)
// sense of community (affiliate w others who use this brand, too)
// active engagement (willingness to invest resources outside of purchase)
Brand Resonance
a consumer's intense and actively loyal relationship with a brand
active engagement
willingness to invest resources outside of purchase

ex: hawks of harely that ride motorcycles together
The King of Branding
Proctor and Gamble
trading up
adding value to the product (or line) to attract a higher-income market and improve the sales of existing lower-priced products

through additional features or higher-quality materials

ex: purina coming up with Purina One, raises the overall brand
trading down (downmarket)
Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.

ex: Popoff to smirnoff, tesla making more affordable cars,
product line length
-line stretching
> downmarket, upmarket, two-way
-line filling
-line modernization
-line featuring and line pruning
Marriott Hotel example
Marriott (middle managers)
.. Marriott Marquis (top execs)
.. Courtyard (sales people)
.. Fairfield Inn (vacationers)
Naming a Brand
legal and not in use

convey benefits
.. ex: Great Value

easily translated

easily spoken
.. bad: Toyota "Nova" menat "No Go" in spanish.
Product Characteristics
-warranty
.. terms of compensation if product fails to perform
..sign of quality
..guarantee may also signal quality

-packaging:
.. functional value
> ex: yogurt that can mix stuff into it, resealable, sun chips biodegradable bags

.. attention getting
> ex: perfume bottles, bright colors, maple syrup, honey bears, etc.

..provide information
> ex: recipes, tent with instructions

> ex: Banana
waranty
terms of compensation if product fails to perform
Packaging
Functional Value
.. product contents and add usage benefit
> ex: yogurt that can mix stuff into it, resealable, sun chips biodegradable bags

Attention getting
> ex: perfume bottles, bright colors, maple syrup, honey bears, etc.

Provide information
.. functional information, usage ideas, benefits
> ex: recipes, tent with instructions

** Banana is the ultimate package example
what is a service?
A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.

// cleaning, motive, hotels, flight
restaurant tangibility
tangible: food
intangible: service

higher education - very intangible

why services are important
1. count for 75% of GDP : national economic
2. accounts for a growing portion
3. marketing research provides greater insight

ex: apple makes most money from hardware but services are important, too
distinctive characteristics of services
intangibility

heterogeneity

inseparability

perishability
> (hotel room, airline flight)

ex: hotel services can only be consumed where they are produced. not used permanently
in class video: virgin airlines, forbes video

7 lessons
1. be visible
2. express a passionate commitment
3. employers are greatest asset
4. hire for attitude
5. empower your employees
6. social media w/ genuine voice
7. have fun
Improving Service Quality
> listening, >reliability,
>basic service, >service design, >recovery, >surprising customers,
>fair play, >teamwork, >employee research,
>servant leadership
in class service example:
// community college calling to check in after graduation

// prof poor hotel in Bankock providing wine, fruit, nuts (delighting)
Improving Service Quality
focusing on some new Ps
~people
// training and monitoring is paramount
ex: chickfila (service experts) v mcdonalds (pay less)

~process
// process differentiation maybe standardized (easy) v customized (difficult)
// more complex service process w higher paid employee

~physical evidence
// servicescapes
People Problems
non-cooperation // anger

being too loud // obnoxious annoying behavior

unjustified complaining // insensitivity to others

ex: pet deaths on united, subway angry customers
Solutions to Customer Failures
1.redesign processes and redefine customer roles to simplify service encounters

2. incorporate the right technology to aid employees and customers

3. create high-performance customers by enhancing their role clarity, motivation, and ability

4. encourage customer citizenship where customers help customers

ex: southwest airlines redoing boarding
> airline terminals, self-print ticket counters
Gaps that cause unsuccessful service delivery
-gap between consumer expectation and management perception

ex: listening gap caused by inadequate market research

-gap between management perception and service-quality

-gap between service-quality and external communications

ex: eprformance

-gap between perceived service and expected service
GAPS: which is usually the most difficult to close?
performance gap
Determinants of Service Quality
reliability,

responsiveness,

assurance,

empathy,
>trying to understand customers


tangibles
>physical character
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