Products & Services for Products & Services for ConsumersConsumers

Chapter 12Chapter 12

QualityQuality

• Market-perceived QualityMarket-perceived Quality

• Performance QualityPerformance Quality

• HomologationHomologation

• Green MarketingGreen Marketing– Packaging concernsPackaging concerns

ProductsProducts

• What is a “Product”?What is a “Product”?– PhysicalPhysical– PsychologicalPsychological

ProductsProducts

• Innovative Products & AdaptationInnovative Products & Adaptation– Degree of newnessDegree of newness– InnovationInnovation– Product diffusionProduct diffusion

• Diffusion of InnovationDiffusion of Innovation– Three variablesThree variables

Analyzing Product Components Analyzing Product Components for Adaptationfor Adaptation

• Product Component ModelProduct Component Model– Core component- Physical productCore component- Physical product

•Product platformProduct platform

•Design featuresDesign features

•Functional featuresFunctional features

Analyzing Product Components Analyzing Product Components for Adaptationfor Adaptation

– Packaging componentPackaging component•TrademarkTrademark

•Brand nameBrand name

•LegalLegal

•PricePrice

•QualityQuality

•PackagePackage

•StylingStyling

Analyzing Product Components Analyzing Product Components for Adaptationfor Adaptation

– Support services componentSupport services component•Repair & maintenanceRepair & maintenance

• InstallationInstallation

• InstructionsInstructions

•Other servicesOther services

•DeliveriesDeliveries

•Warranty Warranty

•Spare partsSpare parts

•LegalLegal

Marketing ServicesMarketing Services

• 4 characteristics4 characteristics– IntangibleIntangible– InseparableInseparable– Heterogeneity (Inconsistency)Heterogeneity (Inconsistency)– Perishable (Inventory)Perishable (Inventory)

• OpportunitiesOpportunities– TourismTourism

Marketing ServicesMarketing Services

• Barriers to Entering Global Markets Barriers to Entering Global Markets for Servicesfor Services– ProtectionismProtectionism– Restrictions on data flowsRestrictions on data flows– Protection of intellectual propertyProtection of intellectual property– Cultural barriers and adaptationCultural barriers and adaptation

Brands in International MKTBrands in International MKT

• Global brandsGlobal brands– McDonald’s, Coca-ColaMcDonald’s, Coca-Cola– Brand imageBrand image– ProblemsProblems

• National brandsNational brands

Brands in International MKTBrands in International MKT

• Country-of-Origin EffectCountry-of-Origin Effect– Which is “best”?Which is “best”?

• Private BrandsPrivate Brands– AdvantagesAdvantages