Sales & Marketing

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Evaluative attributes

Consumers use three types of attributes to evaluate the quality of goods and services: search qualities, experience qualities, and credence qualities. Search qualities are more tangible attributes that a consumer can easily evaluate before purchasing a product such as color, style, price, fit, feel, and smell. Products high in search qualities include clothing, jewelry, and furniture. Experience qualities are attributes that cannot be judged until after purchase or during consumption such as taste or durability. Restaurant meals and haircuts are examples of experience qualities.

Electronic marketing

Electronic marketing uses the Internet/World Wide Web (the Web) to market products and services in ‘market space’ the virtual equivalent of the global marketplace. e Marketing is more than the migration of traditional ‘one to many’ marketing onto the Web. It provides advantage from flexible proactive many: many communications and narrowcasting in extremis. e Marketing radically changes how hospitality firms operate, requiring a paradigm shift toward dialogue with content created by, and for, individuals using information from customers not about them (Hoffman et al., 1995).

Distribution channels

A distribution channel is ‘a group of organizations, independent or not, involved in the process of making a product or service available for use or consumption’ (Shoemaker & Shaw, 2008). There are direct channels, i.e. channels owned by corporations that reach the final consumer (e.g. proprietary sites and call centers) as well as indirect channels which consist of one or a series of intermediaries which form a variety of distribution arrangements also known as distribution systems or distribution networks

Discriminatory pricing

Contrary to common belief, discriminatory pricing has nothing to do with social biases. Discriminatory pricing is a method of setting prices at different levels based on the elasticity of demand of individual market segments. Price differentiations are not sustained by a difference in costs or quality but rather are the result of unique characteristics of individual market segments. Discriminatory pricing methods permit charging lower prices to price sensitive customers and asking full prices from inelastic market segments (Kotler, Bowen, & Makens, 2005).

Disconfirmation theory

Disconfirmation theory involves a subjective before and after evaluation of a service after consumption. Prior to using a product or service, a consumer has certain expectations about it. These expectations become a basis against which to compare actual performance and experience. After consuming the product or experiencing the service, customers determine how well the product ‘measures up’ to their initial expectations and so decides whether product performance is better than, equal to, or worse than expected.

Direct mail marketing

Direct mail marketing refers to the individualized advertising that is sent through traditional mail. The individualized component is created from knowledge of the consumer through database marketing. The data on the consumer allows the marketing message to be customized to the consumer. Direct mail marketing is often called database marketing or one to one marketing. Direct mail marketing involves segmentation and customization.

Diffusion models

The diffusion of innovations is the aggregate of the individual adoption process whereby an individual passes from knowledge to formation of an attitude, to a decision to adopt or reject, to implementation of the new idea, and to confirmation of the decision (Rogers, 1983). It refers to the process and rate at which various groups of individuals adopt an idea or innovation in a given society. Diffusion represents the demand side of the product life cycle (where the supply or production side is represented).

Database marketing

Database marketing is the process of building, maintaining, and using company’s own customer database and other database (products, suppliers, resellers) for the purpose of contacting and trans acting with customers. Database marketing is the most sophisticated selling process in the marketing world today. It is the basis for direct marketing and ultimately relationship marketing.