MKTG Quiz #3

Dynamic Pricing

the practice of changing prices for products and services in real time in response to supply and demand conditions; form of flexible pricing that can result in lower prices; airline seats, scarce items found at art or collectible auctions, out of date items like last yr's model of computer equipment and accessories (time sensitive items)

Cross-channel consumers

a consumer who shops online but buys offline, or shops offline but buys online

Category Management

an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category popular approach to managing assortment of merchandise consider trade deals, order costs, b/t brand effects of price range changes to determine brand assortment, order quantities, and prices consider impact of location and assortment of other product categories if they share limited space (like checkout aisle)

Advertising

any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor; paid = space for the messgae must be bought; nonpersonal = mass media, no immediate feedback loop

Online consumers

click and mortar, hunter and gatherers, brand loyalists, time sensitive materialists, hooked online and single; are the subsegment of all Internet users who employ this technology to research products and services and make purchases

Digital Natives

college students consist of this; these are people who have grown up with smartphones and internet access all of their lives; more than half of college students purchases = made online; download apps, access social media, communicate with texts 24/7

Noise

extraneous factors that can work against effective communication by distorting a message or the feedback received during the communication process; anything that gets in the way - something going on in the world, in the company, etc; can be simple error like printing mistake that affects meaning of newpaper advertisement or use of words/pics that fail to communicate message clearly; also occurs when saleperson's message is misunderstood (accent, slang terms, communication style)

A Choiceboard

is an interactive, digitally enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product and service attributes (or components), prices, and delivery options--examples: Dell's online configurator (design own computer), custom fit clothing at indochino.com, assemble own investment portfolios at Schwab's mutual fund, decorate M&Ms--> helps company become more knowledgeable about customer and anticipate/fulfill their needs (collects precise info about their preferences and behavior)

Nonstore Retailing

occurs outside a retail outlet through activities that involve varying levels of customer and retailer involvement 6 forms: automatic vending, direct mail and catalogs, television home shopping, online retailing, telemarketing, direct selling (lowest to highest active retailer and customer involvement)

Form Utility

production or alteration of a product ex: ralph lauren's polo cutsom shop - allows consumers to create their own custom shirts by selecting from among 34 styles, 25 logo colors, 11 colors, 8 logos, 2 monogram locations, and 6 sizes; offers shirts to meet each customer's specifications