Flashcards
MARS602
Cards in this deck (22)
- 1Market Dynamics- Coffee1. Since 2008, growing demand for fresh single serve coffee and the market has been expanding rapidly (exceeding $8b in 2011).
2. Keurig green mountain: 40% market share in the pod coffee machine market
3. Americans are brand loyal to american brands
- But a market won't expand forever, coffee pod sales growth will slow.
- Competitive machine price and K-factor system
- One reason why renowned european pod machine makers struggle in the region. - 2Changes in the trend of coffee consumption (U.S market)- Pre 1990's: Instant and filtered coffee at home
- Post 1990's: Starbucks radically changed the trend of coffee consumption, creating a cafe culture
- Economic crisis in 2008, how it influenced peoples coffee consumption?
- Pod coffee machines in the US market - 3Starbucks Verismo- Launched in 2012.
- Corporate level: China & Asia pacific, Americas, Europe, Middle East and Russia, Africa.
- Strategic business unit level: Verismo, baking sweets, keep cups, grounded beans to make coffee at home.
- Sold more than 15,000 in fiscal Q1, according to the company
- Main reason for failure: Pod coffee market follows a razor/razor blade model.
- Not many households buy more than one pod coffee machine. (First mover advantage).
- Starbucks loyal customers weren't excited about the verismo machine since they can still enjoy starbucks coffee on the Keurig machine. - 4Razor/Razor blade modelRazors are cheap, but replacement blades are extremely expensive.
Pod coffee machine makers sell machines for low profits and rake in the big bucks on pod and capsule refills. - 5Decoy effectHow to increase product sales without improving the product. Popcorn and Internet.
- 6Services definitionAny act, performance or experience that one party can offer to another. Essentially intangible and does not result in the ownership of anything.
- 7Role and script theoryService encounters can be compared to a play with the actors being the service staff and customers. Theory controls the variability of services, everyone is receiving the same service from employees.
Deviation from it leads to confusion and dissatisfaction from consumers. - 8Role theorySet of behaviour patterns learn't from previous experiences and communication used to gain maximum success in a service encounter. e.g. restaraunt hostess. Greet --> ask # of ppl --> show table etc.
- 9Script theorySequences of actions associated with the actors that through repeated involvement define what the customer expects. e.g. dentist check up. If overused, scripts may lead to mindless service.
- 10Services marketing mixFour p's &
- People: direct, personal interaction between customers and the firms personell or employees for the service to be 'manufactured' and delivered.
- Physical evidence: servicescape - such as physical layout ambience, background music and seating comfort.
- Process of service production: required to manufacture and deliver the service. - 11EthicsMoral principles and values that govern the actions and decisions of an individual or group
- 12LawsSociety's values and standards that are enforceable in the courtroom
- 13Factors that could influence business1. Societal culture and norms
2. Personal moral philosophy
3. Business culture and industry practices - 14Moral intuitionIntuitive awareness of moral value, affect/emotion based moral judgement.
Exposure --> Attention --> Interpretation - 15Moral idealismConsiders certain individual rights or duties universal regardless of the outcome
- 16UtilitarianismConsiders the "greatest good for the greatest number" by assessing the costs and benefits of the consequences.
- 17The levels of strategy in organisationsCorporate
Business unit
Functional - 18Corporate social responsibilityCorporations initiatives to take responsibility for the company's effect on environmental and social well-being.
- 19PaternalismAction limiting a persons or groups liberty or autonamy which is intended to promote their own good.
- 20Libertarian PaternalismIdea that it is both possible and legitimate for private and public institutions to affect behaviour while respecting freedom of choice
- 21NudgeRelated to the libertarian paternalism definition.
They are not mandates,
intervention must be easy and cheap to avoid, the intervention uses the choice architecture that alters peoples behaviour in a predictable and desirable way.
Feet on train, Fly in urinal, smiley or frown faces on energy bills. - 22How nudges can help1. Automatic system:
- Automatic, driven by habits, effortless, uncontrolled.
- emotional, intuitive, impulsive
- Fast and unconscious
- 'doer' not a 'planner'
- Want what it wants when it wants
2. Reflective system:
- controlled, deliberative, reflective, rational
- Calculates, effortful slow and deductive processes involved.
-'planner' as well as 'doer', does what is planned
- insists on importance of self control
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- Flashcards on MARS602, created by Jana Gallagher on 06/11/2017.
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- Jana Gallagher
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