Economics: Conditions of Exchange
40 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the minimum number of parties required for exchange potential to exist?

  • Two (correct)
  • One
  • Three
  • Four

    • What is the primary characteristic of a transaction?

  • The exchange of high-quality goods or services
  • One party gives something to the other without receiving anything
  • The exchange of goods or services without money
  • The trade of values between two parties (correct)

    • What is an example of a barter transaction?

  • Mr. A gives X to Mr. B and receives Y in return
  • The trading of goods or services for other goods or a service
  • Mr. A gives a book to Mr. B and receives a bike in return (correct)
  • Mr. A gives $400 to Mr. B and obtains a TV set

    • What is the primary goal of relationship marketing?

    <p>To build long-term satisfying relationships with key parties</p> Signup and view all the answers

    What is the result of successful relationship marketing?

    <p>Strong economic, technical, and social ties</p> Signup and view all the answers

    What is a marketing network?

    <p>A unique company asset</p> Signup and view all the answers

    What is the key to building long-term relationships in relationship marketing?

    <p>Promising and delivering high-quality goods or services</p> Signup and view all the answers

    What is the role of a legal system in transactions?

    <p>To support and enforce compliance</p> Signup and view all the answers

    What is customer-perceived value based on?

    <p>The benefits and costs of a market offering relative to competing offers</p> Signup and view all the answers

    What happens when a product's performance falls short of a buyer's expectations?

    <p>The customer is dissatisfied</p> Signup and view all the answers

    What is the result of higher levels of customer satisfaction?

    <p>Greater customer loyalty</p> Signup and view all the answers

    What do delighted customers often become?

    <p>Willing marketing partners and 'customer evangelists'</p> Signup and view all the answers

    What is negative demand?

    <p>A state in which all or the major parts of the society dislikes the product</p> Signup and view all the answers

    What is the marketing task regarding demand management?

    <p>To manage demand effectively</p> Signup and view all the answers

    What should companies aim to do to their customers?

    <p>Delight customers by promising only what they can deliver and then delivering more than they promise</p> Signup and view all the answers

    What is an example of a product with negative demand?

    <p>A vaccination</p> Signup and view all the answers

    What is a major problem related to food supply?

    <p>Urban areas encroaching on farmland</p> Signup and view all the answers

    What is a consequence of unstable energy costs?

    <p>Increase in pollution</p> Signup and view all the answers

    What is the primary goal of suppliers in the production concept?

    <p>To increase production to reduce costs</p> Signup and view all the answers

    What is a key factor in technological development?

    <p>Technical skills and equipment</p> Signup and view all the answers

    What do managers in product-oriented organizations assume about buyers?

    <p>Buyers admire well-made products and can select and appreciate product quality</p> Signup and view all the answers

    Why might certain technological developments be rejected?

    <p>Because of their negative environmental impact</p> Signup and view all the answers

    Why do product-oriented companies often design products with little or no customer input?

    <p>Because they believe customers do not know what they want</p> Signup and view all the answers

    What is an important consideration for firms operating within a political and legal system?

    <p>Government regulations</p> Signup and view all the answers

    What is the result of a product orientation in organizations?

    <p>Marketing myopia</p> Signup and view all the answers

    What affects customer buying behavior and the economic, political, and legal environment?

    <p>Social and cultural factors</p> Signup and view all the answers

    What is the primary focus of managers in product-oriented organizations?

    <p>Making quality products</p> Signup and view all the answers

    What is a characteristic of changes in social and cultural variables?

    <p>They tend to be slow but have far-reaching effects</p> Signup and view all the answers

    What is the assumption of managers in product-oriented organizations about their engineers?

    <p>They will know how to design or improve the product</p> Signup and view all the answers

    What is an example of a social and cultural variable?

    <p>Type of food consumed</p> Signup and view all the answers

    What is the mistake that General Motors (GM) made in its product development process?

    <p>They did not ask customers what they wanted</p> Signup and view all the answers

    What is the example of 'marketing myopia' in the railroad industry?

    <p>They overlooked the growing challenge of airlines, buses, trucks, and automobiles</p> Signup and view all the answers

    What type of doubt and anxiety is referred to as post-purchase cognitive dissonance?

    <p>Post-purchase cognitive dissonance</p> Signup and view all the answers

    What is a characteristic of complex buying behavior?

    <p>High involvement in the purchase</p> Signup and view all the answers

    What is an example of a high-involvement product?

    <p>Personal computer</p> Signup and view all the answers

    What do marketers of high-involvement products need to do?

    <p>Differentiate their brand's features</p> Signup and view all the answers

    What type of buying behavior occurs when consumers see little difference among brands?

    <p>Dissonance-reducing buying behavior</p> Signup and view all the answers

    What is an example of dissonance-reducing buying behavior?

    <p>Buying carpeting</p> Signup and view all the answers

    What do consumers undertaking complex buying behavior do?

    <p>Pass through a learning process</p> Signup and view all the answers

    What do marketers of high-involvement products need to help buyers with?

    <p>Learning about product attributes</p> Signup and view all the answers

    Study Notes

    Exchange and Transaction

    • Exchange is the act of obtaining a desired product from someone by offering something in return.
    • Conditions for exchange potential to exist:
      • At least two parties involved
      • Each party has something of value to the other
      • Each party can communicate and deliver
      • Each party is free to accept or reject the exchange offer
      • Each party believes it is appropriate to deal with the other
    • Transaction: the trade of values between two parties, involving at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.

    Relationship Marketing

    • Relationship marketing is the practice of building long-term satisfying relationships with key parties (customers, suppliers, distributors) to retain their long-term preferences and business.
    • Goals of relationship marketing:
      • Build trust and loyalty
      • Deliver high-quality products and services
      • Provide fair prices
      • Establish strong economic, technical, and social ties
    • Outcome: building a unique company asset called a marketing network.

    Marketing Concepts

    • Production Concept: focus on making quality products, assuming consumers will prefer those with the most quality, performance, and features.
      • Managers may fail to appreciate customer needs and focus on technology.
    • Product Concept: assume customers will prefer products with the most quality, performance, and features.
      • Managers may focus on product design without customer input, leading to "marketing myopia" (focus on product over customer needs).
    • Customer-perceived value: the customer's evaluation of the difference between all benefits and costs of a market offering relative to those of competing offers.

    Customer Satisfaction

    • Customer satisfaction depends on the product's perceived performance relative to a buyer's expectations.
    • Customer satisfaction leads to:
      • Greater customer loyalty
      • Better company performance
    • Smart companies aim to delight customers by promising only what they can deliver and then delivering more.

    Demand Management

    • Marketing managers may face different states of demand, including negative demand, where the product is disliked or avoided.
    • Marketing task is to manage demand effectively, considering factors such as:
      • Unstable cost of energy
      • Increased level of pollution
      • Changing government role in environmental protection

    Environmental Factors

    • Technological Environment:
      • Technology has a significant impact on lives, consumption patterns, and economic well-being.
      • Marketers must consider technical developments that are acceptable to society.
    • Political and Legal Environment:
      • Organizations must follow the rules, regulations, and restrictions of the government.
      • Increasing amount of legislation regulating businesses.
    • Social and Cultural Environment:
      • Affects how and why people live and behave, influencing customer buying behavior and the economic, political, and legal environment.
      • Variables include language, education, religious beliefs, and lifestyle.

    Consumer Buying Decisions

    • Five criteria to consider:
      • Length of time to make a decision
      • Costs of goods and services
      • Degree of information search
      • Number of alternatives considered
    • Four types of consumer buying decisions:
      • Complex Buying Behavior: high involvement, significant differences among brands, expensive, risky, or self-expressive products.
      • Dissonance-Reducing Buying Behavior: high involvement, but little difference among brands.
      • ... (to be continued)

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Quiz on the conditions required for exchange to take place, including multiple parties, valuable goods, communication, and freedom to accept or reject offers.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser