Marketing Chapter 14

social media

a catchall phrase for online channels of communication that build communities including social networking sites, blogs, podcasts, wikis, vlogs (video blogs), and other internet-based applications that enable consumers to contribute content

social network

a community or social group that centers its attention on a particular brand or product category

knowledge gap

a firm's failure to understand a customer's expectations or needs, which then leads it to create an offering that disappoints the customer

community

a form of social group that centers its attention around a particular brand of product category

communication gap

a gap that occurs when a marketer overstates the performance level of a product, thereby creating unrealistic expectations on the part of consumers

standards gap

a gap that results when a marketer sets performance standards for a product that are too low, in spite of what is known about the customer's requirements

delivery gap

a gap that results when a product fails to meets its performance standards

Uniform Commercial Code (UCC)

a group of laws that govern commercial practices in the U.S.

CAN SPAM Act

a law that prohibits the use of e-mail, fax, and other technology to randomly send messages to potential consumers

Gramm-Leach-Bliley Act

a legal act that requires certain institutions to provide written notice of their privacy policies

spreader effect

a loyalty program that results in buyers being more likely to try related products offered by a marketer

blocker effect

a loyalty program that results in members blocking out marketing communications from competitors

cross-promotion marketing

a method in which two or more groups act together to reach potential customers

warranty

a promise or assurance by a seller that an offering will perform as the seller represented it would

postpurchase dissonance

a situation in which consumers rethink their decisions after purchasing products and wonder if they made the best decision

influencer panel

a special type of community that participates regularly in marketing research activities

dump accounts

an e-mail account that is used for registering when buying products online in order to ignore spam and other junk e-mail later

implied warranty

an obligation for a seller to provide an offering of at least average quality, beyond any written statements

expressed warranty

an oral or written statement by the seller regarding how a product should perform and the remedies available to the consumer int he event of its failure

sugging

any form of selling under another guise or under a phony front

spam

any unwanted commercial e-mail similar to junk mail

privacy laws

laws that limit the amount and type of information a company can collect about a consumer and also specify how that information can be used or shared

loyalty programs

marketing efforts that reward the frequent purchase and consumption of an offering

customer empowerment

providing tools that enable customers to take control or influence marketing

bot

short for robot; a kind of program that performs automatic functions online

phishing

soliciting personal information in order to steal an identity and use it to generate cash fraudulently

influencer marketing

targeting individuals known to influence others so they will use their influence in the marketer's favor

switching costs

the costs associated with moving to a new supplier of an offering

behavior loyalty

the degree to which a customer habitually buys a product and does not respond to competitors' offerings

attitudinal loyalty

the degree to which a customer prefers or likes a brand

accelerator effect

the effect of a loyalty program that, as a consumer approaches the next level benefits, the rate of the consumer's purchases increases

customer satisfaction

the feeling that results when an offering meets a consumer's expectations

word of mouth

the passing of information and opinions verbally

longevity effect

the process of lengthening a customer's lifetime value over time

viral marketing

the spread of the company's message (like a virus) through a community

cause-related marketing

when a company supports a nonprofit organization in some way in order to generate positive public relations

deal-prone

willing to succumb to a special offer or lower price

buzz

word of mouth that includes blogs, articles, and other forms of promotion