Mktg Chapter 18 – Flashcards
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Marketplace
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buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices) and mostly tangible objects
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Marketspace
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an Internet-enabled digital environment characterized by face-to-screen exchange relationships and electronic images and offerings.
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Time Utility
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Operating hours and geographical constraints do not exist in marketspace
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Possession utility
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getting a product or service to consumers so they can own or use it—is accelerated. (Orbitz allows comparison shopping for the lowest fares, rents, and rates and almost immediate access to and confirmation of travel arrangements and accommodations.)
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Form utility
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Interactive two-way Internet-enabled communication capabilities in marketspace invite consumers to tell marketers specifically what their requirements are, making customization of a product or service to fit their exact needs possible.
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Interactivity
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(1) influence the timing and extent of the buyer-seller interaction--For these relationships to occur, companies need to interact with their customers by listening and responding to their needs
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Individuality
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(2) have a say in the kind of products and services they buy, the information they receive, and in some cases, the prices they pay. -- For these relationships to occur, companies need to interact with their customers by listening and responding to their needs
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*Interactive Marketing*
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the two-way buyer-seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller.
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*Choiceboard*
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an interactive, Internet-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 or service attributes (or components), prices, and delivery options.
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*collaborative filtering*
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a process that automaticallygroups people with similarbuying intentions, preferences, and behaviors and predictsfuture purchases.
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*personalization*
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the consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences.
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*permission marketing*
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the solicitation of a consumer's consent (called "opt-in") toreceive e-mail and advertising based on personal data supplied by the consumer. >>Adhere to 3 rules (opt in, opt out and customers are assured that their name or buyer profile data will not be sold or shared with others)<<
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Opt in
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they make sure opt-in customers receive only information that is relevant and meaningful to them
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Opt out
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customers are given the option to _______, or change the kind, amount, or timing of information sent to them
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Customer Experience
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as the sum total of the interactions that a customer has with a company's website, from the initial look at a home page through the entire purchase decision process
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Context
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Site's layout and visual design >>A functionally oriented website focuses largely on the company's offering, be it products, services, or information. Deal-oriented travel websites, such as Priceline.com, tend to be functionally oriented with an emphasis on destinations, scheduling, and prices<<
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Content
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Applies to all digital information on a website. EX: text, pictures, sound and video the site contains
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Customization
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Site's ability to tailor itself to different users or to allow users to personalize the site
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Communication
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Refers to the dialogue that unfolds between the website and its users. The ways the site enabled site-to-user or user-to-site 2 way communication
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Connection
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Degree that site is linked to other sites. These links are embedded in the website; appear as highlighted words, a picture, or graphic; and allow a user to effortlessly visit other sites with a mouse click
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Community
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The ways that the site enabled user-to-user communication. This design element is popular because it has been shown to enhance customer experience and build favorable buyer-seller relationships
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Commerce
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the website's ability to conduct sales transactions for products and services with a mouse click. Online transactions are quick and simple in well-designed websites.
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Online consumers
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Are the subsegment of all Internet users who employ this technology to research products and services and make purchases. >>As a group they are equally likely to be women and men and tend to be better educated, younger, and more affluent than the general U.S. population, women tend to purchase more.<<
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Why consumers shop online
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(1) Convenience (2) Choice (3) Customization (4) Communication (5) Cost (6) Control
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Convenience
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Ex: Consumers can visit Walmart at www.walmart.com to scan and order from among thousands of displayed products without fighting traffic, finding a parking space, walking through long aisles, and standing in store checkout lines. >>for convenience to remain a source of customer value creation, websites must be easy to locate and navigate, and image downloads must be fast.<<
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*bots*
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are electronic shopping agents or robots that comb websites to compare pricesand product or service features.
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*eight-second rule*
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a view that customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
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Choice
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Offering section & choice assistance
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Customization (for online shopping)
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Arises from Internet-enabled capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyers
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*Customerization*
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>The growing practice of not only customizinga product or service but also personalizing the marketing and overall shopping and buying interaction for each customer. >It combines choiceboard and personalization systems. (seeks to do more than offer consumers the right product, at the right time, and at the right price)
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Communication (for online shopping)
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This communication can take three forms: (1) marketer-to-consumer e-mail notification, (2) consumer-to-marketer buying and service requests, and (3) consumer-to-consumer chat rooms and instant messaging, plus social networking websites such as Twitter and Facebook.
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*web communities*
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are websites that allow people to congregate online and exchange views on topics of common interest.
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Blog
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are popular because they provide online forums on a wide variety of subjects ranging from politics to car repair. Companies such as Hewlett-Packard, PepsiCo, and Harley-Davidson routinely monitor _____ and social media posts to gather customer insights.15
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*spam*
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consists of communications that take the form of electronic junk mail or unsolicited e-mail.
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CAN-SPAM Act
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The prevalence of spam has prompted many online services to institute policies and procedures to prevent spammers from spamming their subscribers, and several states have anti spamming laws. This restricts information collection and unsolicited e-mail promotions on the Internet.
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Buzz
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a popular term for word-of-mouth behavior in marketspace
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*Viral marketing*
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is an Internet-enabled promotional strategythat encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs.
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Cost
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is a fifth reason for online shopping and buying-- Many popular items bought online can be purchased at the same price or cheaper than in retail stores.
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*dynamic pricing*
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is the practice of changing prices for products and services in real time in response to supply and demand conditions. >>(is a form of flexible pricing and can often result in lower prices. It is typically used for pricing time-sensitive items such as airline seats, scarce items found at art or collectible auctions, and out-of-date items such as last year's models of computer equipment and accessories)<<
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Control
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the sixth reason consumers shop online- it gives them over their shopping and purchase decision process. Online shoppers and buyers are empowered consumers.
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*cookies*
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are computer files thata marketer can download ontothe computer or mobile phone of an online shopper who visits the marketer's website
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*behavioral targeting*
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uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising
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Seek product information
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> Educated > Young > Affluent > Diverse
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*cross-channel shopper*
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is an online consumer who researches offerings online and then purchases them at a retail store.
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Production Information... The top reasons these shoppers research items online before buying in stores...
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> Audio/video demos > Digital items > Unique items > Compare products among retailers > Obtain information not in stores
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Multichannel marketing
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the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in the traditional marketplace and online—the cross-channel shopper.
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Transactional Websites
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are essentially electronic storefronts. They focus principally on converting an online browser into an online, catalog, or in-store buyer using the website design elements described earlier.
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Channel conflict
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the potential harm to trade relationships with their retailing intermediaries
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Promotional Websites
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have a very different purpose than transactional websites. They advertise and promote a company's products and services and provide information on how items can be used and where they can be purchased. > can be used to support a company's traditional marketing channel and build customer relationships
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Interactive Experiences
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involving games, contests, and quizzes with electronic coupons and other gifts as prizes
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The consumer-initiated practice of generating content on a marketer's website that is custom tailored to an individual's specific needs and preferences is called .
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personalization
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Companies produce a customer experience through what seven website design elements?
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The seven website design elements are: context, content, community, customization, communication, connection, and commerce.
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What is viral marketing?
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Viral marketing is an Internet-enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail.
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What are the six reasons consumers prefer to shop and buy online?
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The six reasons why consumers prefer to shop and buy online are: convenience, choice, customization, communication, cost, and control.
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Channel conflict between manufacturers and retailers is likely to arise when manufacturers use websites.
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transactional
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Yahoo! allows users to create personalized MyYahoo pages. Users can add or delete a variety of types of information from their personal pages, including stock quotes, weather conditions, and local TV schedules. This is an example of a high degree of __________.
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personalization
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GolfWeb.com, is a-popular Web site for golfing enthusiasts. Its members pay an annual fee of $39.95 to get discounts on merchandise and to trade tips and stories about the best courses and the toughest holes in its chat rooms. This is a description of a Web site with a strong __________ design element
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community
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Which of the following profiles would most likely describe an online consumer?
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a twenty-eight year old chemical engineer living in the suburbs with her husband and two children
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Which of the following marketing tools best contributes to the convenience of online shopping?
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bots
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Internet-enabled technologies provide communication capabilities that take three forms: (1) marketer-to-consumer e-mail notification, (2) consumer-to-marketer buying and service requests, and (3)__________.
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consumer-to-consumer chat rooms, instant messaging, and social networking Web sites.
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To which element of the marketing mix is viral marketing most closely related?
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promotion
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The primary purpose of transactional Web sites is to
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convert an online browser into an online, catalog, or in-store buyer.
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Hyundai Motor America reported 80 percent of the people visiting a Hyundai store first visited the brand's __________Web site.
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promotional
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Pizza Hut's Web site uses __________to collect data on customer purchases so patrons can use Express Checkout when they order.
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cookies
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When buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities (stores and offices), and mostly tangible objects, they are in __________.
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the traditional marketplace
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Airline, car rental, and lodging electronic reservation systems such as Orbitz allow comparison shopping for the lowest fares, rents, and rates and almost immediate access to and confirmation of travel arrangements and accommodations. This demonstrates how marketspace contributes to customer value through the creation of
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possession utility
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Marketers produce a customer experience through seven Web site design elements: (1) context, (2) content, (3) community, (4) customization, (5) __________, (6) connection, and 7) commerce.
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communication
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A(n) __________oriented Web site focuses largely on the company's offering, be it products, services, or information.
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functionally
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The subsegment of all Internet users who employ this technology to research products and services and make purchases is referred to as __________.
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online consumers
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Six general product and service categories dominate online consumer buying today and in the foreseeable future. One of the categories includes items such as computers and consumer electronics, for which product information is an important part of the purchase decision, but
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prepurchase trial is not necessarily critical.
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Bots contribute to the convenience of online shopping because they
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allow customers to make online comparisons of prices and product features.
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Which of the following statements regarding spam is most accurate?
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Online services in some states can legally prevent spammers from spamming their subscribers.
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Dynamic pricing refers to
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the practice of changing prices for products in real time in response to supply and demand conditions.
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Which of the following statements regarding cross-channel shoppers is most accurate?
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Research shows that 51% of US online consumers are cross-channel shoppers
