chapter 9

purchaser

A customer role that describes an individual or institution that pays for or obtains a product or service.

categorical question

Questions that are answered by selecting the proper category; for example, "What is your ethnicity? White, African American, Hispanic, Asian, American Indian, Other."

influencer

A customer role describing a person or group who can make credible or recognized suggestions or recommendations to others regarding purchase choices.

Scalar Question

Question that is answered by some sort of scale; for example, "On a scale of 1 to 5, how do you like this book?"

idea evaluation

exhaustive process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential

survey

A data-collection method using a questionnaire—in person, on phone, on paper, or on the Internet.

customer profile

A detailed description of an archetypical or hypothetical potential customer for a product or service, also called a customer persona

tangibility

An item's capability of being touched, seen, tasted, or felt

augmented product

core product plus features that tend to differentiate it from the competition

focus group

A form of data gathering from a small group led by a moderator.

Serviceable obtainable market (SOM)

A marketing term (also called the target market) that represents the customers that a firm expects to be interested in its particular product or service, and able to be serviced by the firm.

Penetrated Market (PM)

A marketing term that describes the actual number of customers of an operating firm, divided by the size of the target market, which gives a percentage of the market the firm (or product/service) has attained so far.

Total Available Market (TAM)

A marketing term that refers to all of the people or organizations (in one nation, region, or the world) who might consider a product or service being offered.

Serviceable available market (SAM)

A marketing term that refers to the customers within the geographic reach of a firm.

value proposition

Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition.

marketing research

Systematic collection and interpretation of data to support future marketing decisions.

pivot

Typically, a term describing a change of direction in the thinking of an entrepreneur or a firm, often based on new data or other findings.

ethnographic research

Data gathered by simple observation—seeing what consumers do, rather than asking them

open-ended questions

Question that allows respondents to express themselves as they choose; for example, "What do you like about this book?"

dichotomous key

Question that has only two possible choices; for example, "Have you shopped here before?"

Product Development Process

The procedure to organize and pursue the creation of new goods or services.

Customer Development Process

The procedure to organize and pursue the finding, obtaining, and keeping of new customers.

Commercialization

The process of making the new products ready for use by consumers by achieving standards durability and performance suitable for the market and comparable to (if not better than) the competition.

Commercialization

The process of making the new products ready for use by consumers by achieving standards of durability and performance suitable for the market and comparable to (if not better than) the competition.

Purchasing Process

The sequence of steps an individual or organization goes through in making a decision to buy a product or service

customer job

The term given to what a potential customer is trying to do—perform or complete some sort of task, solve some problem, or try to achieve some outcome.

core product

basic description of what a product is

heterogeneity

A quality of a service in which each time it is provided it will be slightly different from the previous time.

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service.

budget cycle

A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization

total product

The entire bundle of products, services, and meanings of your offering; includes extras like service, warranty, or delivery, as well as what the product means to the customer.

Perishability

service exhibits perishability in that if it is not used when offered, it cannot be saved for later use

Primary Research

An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation.

Secondary Research

An approach to researching based on the use of existing information, often from government,commercial, or academic databases and research efforts.

decision maker

A customer role that describes a person in an organization who is responsible for choosing which product or service will be obtained

end user

A customer role that describes the person who eventually makes actual use of a product or service in his or her personal or work life