Value chain: a series of activities involved in designing, producing, marketing, delivering and supporting any product.

Value – perceived benefits minus perceived sacrifice to obtain utility

Marketplaces are the host locations for exchanges.

Market = all consumers with a common need that can be satisfied by a specific product and who have resources, willingness and authority to purchase.

Latent demand—Consumers may share a strong need that cannot be satisfied by an existing product.

Demand results when desire coupled with buying power to satisfy a want

A need is the difference between a consumer’s actual state and some ideal or desired state.

A key challenge for marketing executives managing services is the fluctuation of demand.

The service characteristic of inseparability refers to the fact that you cannot separate the production and consumption of a service.

Customer equity is the financial value of customer relationships throughout the lifetime of the relationships.

The service recovery paradox (SRP) describes the phenomenon where a customer thinks exactly the same of a firm after a service failure occurred compared to before the service failure occurred.

The SMART-framework suggests than any marketing objective should be specific, measurable, achievable, realistic and targeted.

Equipment or facility-based services should be concerned about operational, locational and environmental factors

Services are acts or performances that one party can offer another that are

essentially intangible and do not result in the ownership of anything.

Consumers that first adopt a new product are called "Early adopters".

For prestige products, demand usually increases when the price decreases.

The internal marketing environment is less controllable when compared to the external environment.

Netnography is a data collection method that is particulary suited for exploring elderly consumers.

Benefit occurs when a product satisfies a need or a want.

For a company to recover from a service failure the most important aspect is to compensate the consumer.

The three P's in the marketing mix that are specific to services stand for: People, Process, Physical evidence.

When consumers engage in an impulse purchase they are highly involved and perceive a high degree of risk.

Cost per thousand (CPT) reflects the cost to deliver a message to 1000 people and allows advertisers to compare the relative cost-effectiveness of different media vehicles.

Airline alliances are an example of horizontal marketing system.

Operant conditioning occurs when people learn that their actions result in rewards or punishments.

There are three key characteristics of services: intangibility, perishability and variability.

Selective distribution refers to selling only through a single outlet in a region

There is no difference between segmenting business-to-business (B2B) and consumer markets, both use the same segmentation variables

Measuring customer retention is relevant because continuously finding new customers is more expensive than retaining existing profitable ones.

A pull strategy is a strategy where manufacturers start by promoting their product to the consumers who then demand it from the retailer.

The AIDA model of communications includes the following steps: Arrention, Interest, Differentiation and Action.

The click-to-basket rate estimates how many basket placements are converted to purchases.

Intermediaries (e.g. retailers, wholesalers, distrinutors) add value by reducing the number of transactions for the manufacturer.

If, following a price drop of 10%, the quantity demanded rises by 20%, the company has to deal with inelastic demand on its product.

When a company prices a product with the goal to achieve maximum sales and market share, the company follows a skimming strategy.

The break-even point indicates a product's sales volume that must be reached at a given price before the company will cover total costs and begin making a profit.

Distribution quality refers to where the product is stocked in store (shelf space, shelf location and facings).

At the lowest level of the brand equity pyramid (brand salience), consumers might look at the brand performance relative to competitors.

A customised targeting strategy entails focusing efforts on offering one or more products to a single segment.

When deciding which segment to introduce your product to, a segment with high supplier bargaining power is generally more attractive than a segment with low supplier bargaining power.

One of the dangers of not segmenting is to waste resources by over- or under-serving customers.

Psychografic segmentation segments consumers on the basis of how they act towards, feel about or use a product.

Generational marketing implies focusing on generations as segments.

A cross-sectional design refers to a study where survey responses from one or more samples of consumers are collected at one point in time.

When evaluating research data quality, the criterion of "validity" refers to the fact that results can be replicated.

Operational planning has the longest time horizon when compared to functional and strategic planning.

Focus groups, case studies and projective methods are quantitative methods.

One of the goals of the SWOT analysis is to convert a firm's weaknesses to strengths.

A subculture is a network of heterogeneous persons linked by a shared passion, emotion and deep interpersonal connection.

"Need for cognition" refers to a personality trait that inclines consumers to engage in information processing about a brand or upcoming purchase.

Selective retention describes the tendency of people to interpret information in a way that will support what they already belive.

In a non-compensatory model of choice, a positive pruduct attribute can offset a negative product attribute (algebraic).

Value is calculated as the perceived benefits minus perceived costs, whereby costs are always expressed in monetary terms.

When consumers dislike a product or even pay to avoid it, this product is said to have declining demand

An exchange occurs when something is obtained for something else in return.

Utility involves all the benefits consumers receive from using a product.

On social media, negative information (e.g. scandals, product failures) spreads faster and wider than positive information.

Status symbols and social class markers change over time and across cultures.

A market segment consists of a fairly homogeneus group of consumers who share a similar set of needs and wants.

Price is the value that customers give up or exchange to obtain a desired product.

The economics perspective of marketing suggests consumers are rational thinkers.

Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.

In the product-market growth matrix by Ansoff, a diversification strategy refers to a strategy where new products are developed for existing markets to achieve growth.

The tools marketers use to execute their programs (called the 4Ps or 7Ps) are commonly referred to as the marketing plan.

Product placement is a form of branded entertainment.

Irregular demand refers to the situation when consumers begin to buy the product less frequently or not at all.

On the problem/need recognition step of the consumer buying process, "external cues" include advertising and word of mouth

Cognitive dissonance ia when the consumer experiences feelings of pre-purchase psychological tension or anxiety

The lifetime value of a customer is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime.

Whenever there is a strong correlation between variables in the data, there is also causation.

Product packaging can be a way to create a competitive advantage.

When brands are repositioned and relaunched as retro-brands, the concept of "meaning revival" refers to marketers building on positive brand meanings and associations from the past for re-introducing the product.

When consumers believe a more expensive product to be of higher quality, they use heuristics to simplify their evaluation and decision-making process

Each link in the value chain has potential to add but also to remove value for consumers

A mission statement describes a company's overall purpose and what it hopes to achieve in terms of its customers, products and resources.

Targeting is the process of dividing a larger market into small pieces on the basis one or more meaningful, shared characteristics

Cognitive dissonance typically occurs at each stage of the consumer buying process.

The supply chain includes all firms that engage in activities necessary to convert raw materials into the product and to put the product in the hands of a customer.

Customer Retention measures customer loyalty through the rate at which acquired customers are leaving or not renewing

Luxury products are best sold in discounters/supermarkets.

During the recession consumers tend to be more price-sensitive.

Brands have dimensions that differentiate them from other products designed to satisfy the same need.

During the production orientation era of Marketing, availability of products exceeded consumer demand

A servicescape describes the situation when a customer decides to terminate the service interaction (e.g. the customer escaped the service)

For some products demand increases when price increases

Linking value refers to the benefit of accessing new knowledge from an object or experience.

Motivation is an internal state that drives us to satisfy needs

Qualitative data is not suitable for generalising findings to the general population.

Distribution (i.e. where your products are sold) can also function as a form of communication.

A discontinuous innovation refers to an innovation that poses relatively little disruption and change to the consumer.

Cannibalisation refers to a reduction in sales or market share of a firm's existing product as a result of introducing a new product

A want is a desire for a particular product to satisfy a need in specific ways that depends on an individual's history, learning experiences and cultural environment.

Attention is the extent to which a stimulus is capable of being registered by a person's sensory receptors

Disintermediation is the process by which traditional intermediaries are eliminated, as companies (e.g. manufacturers or service providers) question the value added by different layers in the distribution channel

The term "firmographics" refers to demographics of an organisation (e.g. firm size, type of business)

The augmented level in the product-layer concept refers to a product's basic benefits

The seven steps of the new product development (NPD) process will always proceed in exactly the same order

The five steps of the consumer buying process apply primarily to habitual purchases.

A segment profile refers to a description of a typical cusromer in that segment

In the "operational planning" stage, supervisory managers figure out how to execute the marketing plans.

Perceptual Mapping is an analytycal tool to assess whether a product has a "unique place" in the mind of the customer related to the competition.

Positioning is the process of creating an image for a product/service in the mands of targeted customers

Learning, motivation, perception, personality and attitudes are all examples of constructs used in marketing that are borrowed from the academic discipline of economics.

Cognitive learning is based on observation

Marketing Return on Investment (ROI) is the net return from a marketing investment divided by the costs of the marketing investment

A concentrated targeting strategy means that products exactly meet the needs of each individual

Advertising and sales promotion are elements of the promotion mix over which a firm has a relatively high degree of control

The DRIP model of marketing communications stands for: Differentiate, Remind, Inform, Position.

Projective research techniques are well-suited to explore people's underlying feelings and memories that are difficult to extract directly.

The customer experience comprises of the behavioral, affective, sensorial, intellectual and social (BASIS) elements.