Term
| Name the three degrees of brand loyalty |
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Definition
| Brand recognition, brand preference, and brand insistence |
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Term
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Definition
| When a person is aware of the existence of a brand, and views it as an alternative of purchase if the preferred brand is unavailable or if the other available brands are unfamiliar. Brand "loyalty" here, is very loosely used. |
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Term
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Definition
| A stronger degree of brand loyalty, preference is when a customer definitely prefers one brand over a competitive offering and will choose that brand if it is available. However, if the brand is not available the customer will accept a substitute product. The customer will not go to great lengths to acquire the specific brand preferred. |
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Term
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Definition
| When a customer strongly prefers a specific brand to the extent that they will accept no substitute and will go to great personal inconvenience to acquire that brand and that brand only, (even if the brand is presently unavailable) refusing to accept any substitutes. |
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Term
| Four types of brand equity |
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Definition
| Perceived brand quality, brand loyalty, brand awareness, brand associations |
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Term
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Definition
| Perception of what the brand's quality is. Plays a big role in pricing; higher quality perception translates to more willingness to pay for that product |
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Term
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Definition
| Loyalty to one specific brand to the potential exclusion of others |
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Definition
| When a familiarity with the brand affects our comfort with the brand |
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Term
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Definition
| What we link to a certain brand, (such as "unique taste" with Dr. Pepper) a attribute or something we associate with it (but not necessarily a trademark) |
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Term
| Five types of branding policies |
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Definition
| Individual branding, family branding, brand extensions, Co-branding, brand licensing |
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Definition
| Policy of naming each brand individually. |
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Definition
| All products branded with the same name or part of the same name |
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Definition
| Using an existing brand to brand a product in a different product category |
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Term
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Definition
| Using one or two brand words on one product. Employed to capitalize on brand equity of multiple brands. (Chase-amazon credit card) |
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Term
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Definition
| Agreement in which one organization permits another to use its brand name to promote their product in exchange for a fee |
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Term
| What product innovation does for the marketing mix |
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Definition
| Enhances product element. Creates value for firm, helps obtain competitive advantage, helps to achieve long term success through commercialization of goods and services. |
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Term
| What's analyzed during the business analysis phase of new product development |
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Definition
| The potential of product idea for firms sales, costs, and profits. This includes ascertaining whether the product fits in with the current product mix, whether demand is strong enough to enter the market at all, and whether the firm is capable of developing the product. Also assesses costs for development and marketing of product. |
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Term
| Three major ways to modify existing products |
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Definition
| Quality modifications, functional modifications, aesthetic modifications |
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Term
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Definition
| Product modifications related to level of quality. Include changes to materials and production processes related to a product's dependability and durability. Modifying quality can mean lowering quality to provide lower prices or increasing quality to gain competitive advantage. |
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Term
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Definition
| Involve product modifications that adjust functions and abilities products serve and possess. Can include changes to product versatility, effectiveness, convenience or safety; usually require redesign of product. Provide stronger competitive position, achievement, and maintaining of a progressive image, and can diminish risk of liability lawsuits. |
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Term
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Definition
| Changes to sensory appeal of product such as change in taste, texture, sound, smell, or appearance. Can provide differentiation of product but aesthetic preference is subjective. |
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Term
| Three major approaches marketers use to differentiate their products |
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Definition
| Quality, design and features, services |
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Term
| Reasons to delete products |
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Definition
| Slow sales causing higher unit-production, inventory, and distribution costs; preventing negative feelings about products from affecting existing products; replacing old products |
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Term
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Definition
| Quality is the ability of the good or service to consistently meet or exceed expectations of the customer. Quality is determined by the customer. |
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Term
| The seven dimensions by which customers judge quality |
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Definition
| Assurance, convenience, courtesy, reliability, responsiveness, tangibles, time |
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Term
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Definition
| the knowledge exhibited by personnel who come into contact with a customer and their ability to convey trust and confidence |
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Term
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Definition
| the availability and accessibility of a service |
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Term
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Definition
| the way customers are treated by employees that come into contact with them |
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Term
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Definition
| the ability to perform a service dependably, consistently, and accurately |
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Term
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Definition
| the willingness of service providers to help customers in unusual situations and to deal with problems |
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Term
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Definition
| The physical appearance of facilities, equipment, personnel, and communication materials |
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Term
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Definition
| the speed with which the service is delivered |
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Term
| Total Quality Management (TQM) |
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Definition
| An organization-wide philosophy to make a continual effort to improve quality and achieve customer satisfaction. Based on three pillars |
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Term
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Definition
| Continuous improvement, company involvement, customer satisfaction |
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Term
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Definition
| Pillar dictating that the company should have a never-ending push to improve quality of good or service. Continually striving to improve processes or gain control of issues affecting company. |
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Term
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Definition
| Everyone in the company must be involved for TQM to work. Everyone must work together to produce best end result possible. |
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Term
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Definition
| Customer determines quality. Company is not properly practicing TQM if customer is not satisfied |
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Term
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Definition
| Literally having no more than one defect every 3.4 million opportunities. Designed to reduce defects in order to diminish costs and improve customer satisfaction. Has become a key way to improve quality, cut costs, and save time in the business world. Six sigma moves from a way to measure quality to an overall strategy to accelerate improvements |
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Term
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Definition
| Define, measure, analyze, improve, control |
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Term
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Definition
| Identify customers and their priorities, projects suitable for Six-Sigma (analyzing business objectives and customer needs), and critical to quality (CTQ) characteristics |
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Term
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Definition
| Determine HOW to measure CTQ & process, performance of the current process, and estimate current process capability |
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Term
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Definition
| Benchmark key performance measures and identify key sources of process variation |
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Term
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Definition
| Understand key process variables via statistically designed experiments and set new performance specifications for product and process |
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Term
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Definition
| Estimate new process capability and monitor new process using SPC (statistical process control) |
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Term
| Difference between TQM and Six Sigma |
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Definition
| TQM focuses on overall quality while Six Sigma focuses on multiple objectives such as reducing defects, costs, product/process variability, delivery time, increasing productivity, or improving customer satisfaction. Both require top management and all other employees to "buy in", but six-sigma is a more top down approach while TQM is a collaborative effort |
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Term
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Definition
| NPV, payback method, profitability index (PI, aka benefit-cost ratio), and internal rate of return (IRR) |
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Term
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Definition
| Measures how long it takes to recover initial investment. Decision criterion is to select the project that has the highest payback. |
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Term
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Definition
| Ratio of the PV of the inflows to the PV of the outflows. Decision criterion is to select the project that has the highest profitability index. Problem with PI is that ratios ignore scale. |
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Term
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Definition
| Involves subtracting the present value of the outflows from the present value of the inflows. Decision criterion is to accept project if NPV is >= 0. |
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Term
| Internal rate of return (IRR) |
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Definition
| Find the discount rate that equates the PV of the outflows with the PV of the inflows. Accept if >=0 |
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Term
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Definition
| A set of interdependent steps leading to a goal |
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Term
| When do you know your process is in control? |
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Definition
| When you have removed all assignable cause of variation |
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