Shared Flashcard Set

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IBC Test 5
Final
52
Business
Undergraduate 4
12/09/2008

Additional Business Flashcards

 


 

Cards

Term
Name the three degrees of brand loyalty
Definition
Brand recognition, brand preference, and brand insistence
Term
Brand recognition
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.
Term
Brand preference
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.
Term
Brand insistence
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.
Term
Four types of brand equity
Definition
Perceived brand quality, brand loyalty, brand awareness, brand associations
Term
Perceived brand quality
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
Term
Brand loyalty
Definition
Loyalty to one specific brand to the potential exclusion of others
Term
Brand awareness
Definition
When a familiarity with the brand affects our comfort with the brand
Term
Brand associations
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)
Term
Five types of branding policies
Definition
Individual branding, family branding, brand extensions, Co-branding, brand licensing
Term
Individual branding
Definition
Policy of naming each brand individually.
Term
Family branding
Definition
All products branded with the same name or part of the same name
Term
Brand extension
Definition
Using an existing brand to brand a product in a different product category
Term
Co-branding
Definition
Using one or two brand words on one product. Employed to capitalize on brand equity of multiple brands. (Chase-amazon credit card)
Term
Brand licensing
Definition
Agreement in which one organization permits another to use its brand name to promote their product in exchange for a fee
Term
What product innovation does for the marketing mix
Definition
Enhances product element. Creates value for firm, helps obtain competitive advantage, helps to achieve long term success through commercialization of goods and services.
Term
What's analyzed during the business analysis phase of new product development
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.
Term
Three major ways to modify existing products
Definition
Quality modifications, functional modifications, aesthetic modifications
Term
Quality modifications
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.
Term
Functional modifications
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.
Term
Aesthetic modifications
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.
Term
Three major approaches marketers use to differentiate their products
Definition
Quality, design and features, services
Term
Reasons to delete products
Definition
Slow sales causing higher unit-production, inventory, and distribution costs; preventing negative feelings about products from affecting existing products; replacing old products
Term
Quality
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.
Term
The seven dimensions by which customers judge quality
Definition
Assurance, convenience, courtesy, reliability, responsiveness, tangibles, time
Term
Assurance
Definition
the knowledge exhibited by personnel who come into contact with a customer and their ability to convey trust and confidence
Term
Convenience
Definition
the availability and accessibility of a service
Term
Courtesy
Definition
the way customers are treated by employees that come into contact with them
Term
Reliability
Definition
the ability to perform a service dependably, consistently, and accurately
Term
Responsiveness
Definition
the willingness of service providers to help customers in unusual situations and to deal with problems
Term
Tangibles
Definition
The physical appearance of facilities, equipment, personnel, and communication materials
Term
Time
Definition
the speed with which the service is delivered
Term
Total Quality Management (TQM)
Definition
An organization-wide philosophy to make a continual effort to improve quality and achieve customer satisfaction. Based on three pillars
Term
Three pillars of TQM
Definition
Continuous improvement, company involvement, customer satisfaction
Term
Continuous improvement
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.
Term
Company involvement
Definition
Everyone in the company must be involved for TQM to work. Everyone must work together to produce best end result possible.
Term
Customer satisfaction
Definition
Customer determines quality. Company is not properly practicing TQM if customer is not satisfied
Term
Six Sigma
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
Term
Steps of Six Sigma
Definition
Define, measure, analyze, improve, control
Term
(6s) Define
Definition
Identify customers and their priorities, projects suitable for Six-Sigma (analyzing business objectives and customer needs), and critical to quality (CTQ) characteristics
Term
(6s) Measure
Definition
Determine HOW to measure CTQ & process, performance of the current process, and estimate current process capability
Term
(6s) Analyze
Definition
Benchmark key performance measures and identify key sources of process variation
Term
(6s) Improve
Definition
Understand key process variables via statistically designed experiments and set new performance specifications for product and process
Term
(6s) Control
Definition
Estimate new process capability and monitor new process using SPC (statistical process control)
Term
Difference between TQM and Six Sigma
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
Term
Decision criterion
Definition
NPV, payback method, profitability index (PI, aka benefit-cost ratio), and internal rate of return (IRR)
Term
Payback method
Definition
Measures how long it takes to recover initial investment. Decision criterion is to select the project that has the highest payback.
Term
Profitability index (PI)
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.
Term
Net Present Value (NPV)
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.
Term
Internal rate of return (IRR)
Definition
Find the discount rate that equates the PV of the outflows with the PV of the inflows. Accept if >=0
Term
Process
Definition
A set of interdependent steps leading to a goal
Term
When do you know your process is in control?
Definition
When you have removed all assignable cause of variation
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