(BQ) Part 2 book Principles of marketing has contents: Retailing and wholesaling, advertising and public relations, personal selling and sales promotion, creating competitive advantage, the global marketplace, the global marketplace; direct and online marketing - building direct customer relationships,...and other contents.
Find more at www.downloadslide.com Part 1: Defining Marketing and the Marketing Process (Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20) 10 Pricing Understanding and Capturing Customer Value now look at the second Chapter Preview We major marketing mix tool— pricing If effective product development, promotion, and distribution sow the seeds of business success, effective pricing is the harvest Firms successful at creating customer value with the other marketing mix activities must still capture some of this value in the prices they earn In this chapter, we discuss the importance of pricing, dig into three major pricing strategies, and look at internal and external considerations that affect pricing decisions In the next chapter, we examine some additional pricing considerations and approaches For openers, let’s examine an interesting strategic pricing story Air Arabia introduced a new way of doing business to the airline industry in the Middle East when it was established in 2003 Keeping costs down by cutting expensive overheads allowed fare prices to be set much lower than competitors without sacrificing operational excellence, and opened the possibility of air travel up to a whole new market segment Air Arabia: Customer-Value-Based Pricing ack in October 2003, new airline Air Arabia started money and safe, reliable operation Through its value propoits operations to introduce a new concept to the air sition and commitment, “Be Smart, Pay less, Fly more,” Air transportation industry in the Middle East and North Arabia set itself apart from its competitors in the Middle East Africa region—“Pay Less, Fly More”—operating as one of the world’s leading budget airlines in terms of profit with two leased A320 aircraft flying to only five destinations margin, innovation, reputation, and operational excellence Air Arabia, as a budget airline, revolutionized the airline Air Arabia’s customer interface is based on the pricing industry in the Middle East and North Africa with its low fares structure presented on its main Web site The primary focus is and by adopting a completely different way of doing business to make air travel more convenient and frequent through Intercompared to the traditional airlines By ditching expensive net booking (e-ticketing) and y offering the lowest fares in the overhead costs such as free food and drinks; utilizing the same market without sacrificing service, safety standards, and agency type of airplanes but minimizing maintenance, training, and recosts pair costs; and flying to airports with cheaper landing fees, this By selling its tickets electronically online or via telephone, budget airline was able to pass huge savings on to its customAir Arabia’s marketing costs become much lower, with no ers Later on, this business philosophy led to the launch of other travel agent commissions to pay or paper tickets to print and new budget airlines in the Middle East As the first low-fare airline in the Middle East and North Africa region, Air Arabia was based in Sharjah International Airport With its “Be Smart, Pay less, Fly and was customized to meet local more” tagline, Air Arabia puts customer value preferences Two characteristics of at the forefront of its strategy—offering the lowest Air Arabia’s core business strategy are “The business mission” and fares in the market without sacrificing “Basis for differentiation.” Its busicustomer service ness mission aims to revolutionize air travel in the region through an innovative business approach of offering superb value for the B Find more at www.downloadslide.com Chapter 10 post Virtually all budget airlines use a system of dynamic pric ing on their tickets, which means their prices change continually based on demand Usually, the further ahead a customer books UISPVHIBOPOMJOFCPPLJOHXFCTJUF UIFDIFBQFSUIFFUJDLFUXJMM CF 4PNFUJNFT DVTUPNFST HFU MBTUNJOVUF CBSHBJOT PO FNQUZ áJHIUT CVUVTVBMMZUIFDMPTFSUIFFCPPLJOHJTUPEFQBSUVSFEBZ the less of a bargain it will be The foremost mission at Air Arabia is to deliver a smooth, comfortable, and enjoyable journey with the best value for the money to its customers This budget airline is committed to meeting the expectations of its valued customers by offering distinctive services and competitive offers throughout the year When Air Arabia was launched back in 2003, the main competitors in the airline industry in the region were Emirates Airlines, Etihad Airways, and Gulf Air Emirates Airlines had the biggest share in the market, as it was already established and XBT LOPXO GPS JUT IJHIRVBMJUZ TFSWJDF (VMG "JS XBT BOPUIFS competitor, but because it wasn’t an offi cial airline of the United Arab Emirates, it did not pose as many threats as Emirates Airlines Finally, Etihad Airways had just started operations and did not pose much competition In terms of market segmenta tion in the startup phase, two particular segments in the market IBE CFFO PWFSMPPLFE CZ BJSMJOFT MPXCVEHFU BJSMJOFT BOE BJS lines targeted at the niche market Air Arabia decided to target the former and came up with its strategy of “Pay less, Fly more.” Air Arabia enabled customers to make the smart travel choice; those who had been unable to afford air travel in the past started travelling throughout the region, and those who al SFBEZUSBWFMMFEXFSFBCMFUPEPTPNPSFGSFRVFOUMZ UIVTUIFOFX airline benefi tted both business and leisure travelers Air Arabia could also target passengers who used to drive to nearby coun USJFTTVDIBT0NBO 4BVEJ"SBCJB BOE#BISBJO8JUIMPXDPTU Air Arabia tickets, passengers could save substantial time fl ying to these countries rather than driving The airline could also tar get customers who did not fl y that often, as travelling by airline was considered by many to be an expensive option Other target markets included passengers looking for a weekend break or short trips that would not cost a lot The success of the launch of Air Arabia also meant that there would be competing budget airlines starting up in the fu ture, and that hence competition would soon be posed not only CZUIFFYJTUJOHBJSMJOFTCVUBMTPCZOFXTUBSUVQMPXCVEHFUDBS riers, including not only those operating from the United Arab Emirates, but also other budget airlines starting up in other countries in the GCC In addition, other international airlines were operating in the region, including Air France, British Air ways, KLM, Lufthansa, Cathay Pacifi c, Saudi Airlines, Air In dia, and others During its fi rst period of operations from 2004 to 2008, the number of Air Arabia’s passengers grew at a compounded annual growth rate (CAGR) of 60 percent; the number of pas TFOHFSTHSFXCZQFSDFOUZFBSPWFSZFBSJOUPSFBDI million passengers compared to 2.7 million passengers in 2007, and formed 68 percent of the total passenger traffi c at Sharjah International Airport in 2008 | Pricing: Understanding and Capturing Customer Value 311 In 2012, Air Arabia reported Air Arabia offers a UIJSERVBSUFSOFUQSPàUTPGSPVHIMZ simple pricing plan to its $61.5 million, a signifi cant increase customers, and invites compared to roughly $27.2 mil them to “Be smart, pay lion in the corresponding period less, fl y more” in its in 2011 This refl ects the airline’s adverts strong fi nancial position and out © Dragomir Nikolov/Shutterstock standing performance Sheikh com Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, described the exceptional fi nancial performance as resulting from the airline’s strong busi OFTTNPEFM FYDFMMFOUDPTUDPOUSPMNBSHJOT BOEQSVEFOUHSPXUI strategy He noted that Air Arabia looked to be on a strong growth trajectory, given the company’s sustained growth mar gins and steady profi ts Additionally, their strategy to pursue UIFMPXDPTUNPEFMJOUIFXJEFS"SBCSFHJPOXBTTIPXOUPCF valid by the positive fi nancial reports and continuing growth of customer base Though political instability and sustained high fuel costs continue to challenge regional carriers, the appeal of air trans QPSU BOEFTQFDJBMMZUIFMPXDPTUNPEFMQJPOFFSFECZ"JS"SBCJB in the region, remains strong As these results make clear, Air Arabia remains on a path of steady upward growth Air Arabia will continue to enter into new markets and to launch new ven tures in 2012–2013, supporting the airline’s robust commercial and operational performance, while providing customers with an even wider choice of affordable air travel options As part of its commitment to enable more people to fl y effi ciently and affordably, Air Arabia continues to enter into OFX NBSLFUT *O UIF QBTU RVBSUFS JU IBT BEEFE UISFF OFX EFTUJOBUJPOT&SCJM JO *SBR 6GGB JO 3VTTJB BOE 0EFTTB JO Ukraine—expanded operations from its hubs in Morocco and Egypt, and announced the launch of an additional four routes in October 2012, bringing Air Arabia’s global network to a reach of 81 destinations This refl ects the airline’s continued focus on FYQBOEJOHJUTTQIFSFJOUPIJHIHSPXUINBSLFUTXIJMFTJNVMUB neously strengthening services in existing routes1 Find more at www.downloadslide.com 312 Part |%FTJHOJOHB$VTUPNFS%SJWFO4USBUFHZBOE.JY Objective Outline Objective Answer the question “What is a price?” and discuss the importance of pricing in today’s GBTUDIBOHJOHFOWJSPONFOU What Is a Price? Objective (pp 312–313) Identify the three major pricing strategies and discuss the importance of understanding DVTUPNFSWBMVFQFSDFQUJPOT DPNQBOZDPTUT BOEDPNQFUJUPSTUSBUFHJFTXIFOTFUUJOHQSJDFT Major Pricing Strategies Objective (pp 313–321) Identify and defi ne the other important external and internal factors affecting a fi rm’s pricing decisions Other Internal and External Considerations Affecting Price Decisions (pp 321–328) Z.BSLFUJOH-BC *NQSPWF:PVS(SBEF 0WFSNJMMJPOTUVEFOUTJNQSPWFEUIFJSSFTVMUTVTJOHUIF1FBSTPO.Z-BCT7JTJU XXXNZNLUMBCDPNGPSTJNVMBUJPOT UVUPSJBMT BOEFOEPGDIBQUFSQSPCMFNT Objective Answer the question “What is a price?” and discuss the importance of pricing in today’s GBTUDIBOHJOHFOWJSPONFOU Companies UPEBZGBDFBàFSDFBOEGBTUDIBOHJOHQSJDJOHFOWJSPONFOU7BMVF seeking customers have put increased pricing pressure on many companies Thanks to eco OPNJDXPFTJOSFDFOUZFBST UIFQSJDJOHQPXFSPGUIF*OUFSOFU BOEWBMVFESJWFOSFUBJMFST TVDI"JS"SBCJB UPEBZTNPSFGSVHBMDPOTVNFSTBSFQVSTVJOHTQFOEMFTTTUSBUFHJFT*OSF sponse, it seems that almost every company has been looking for ways to cut prices Yet, cutting prices is often not the best answer Reducing prices unnecessarily can lead to lost profi ts and damaging price wars It can cheapen a brand by signaling to customers Instead, in both that price is more important than the customer value a brand delivers good economic times and bad, companies should sell value, not price In some cases, that NFBOTTFMMJOHMFTTFSQSPEVDUTBUSPDLCPUUPNQSJDFT#VUJONPTUDBTFT JUNFBOTQFSTVBE ing customers that paying a higher price for the company’s brand is justifi ed by the greater value they gain What is a Price? Pricing: No matter what the state of the economy, companies should sell value, not price magicoven/Shutterstock.com In the narrowest sense, price is the amount of money charged for a product or a service More broadly, price is the sum of all the values that customers give up to gain the benefi ts of having or using a product or service Historically, price has been the major factor affecting buyer choice In recent decades, however, nonprice factors have gained increasing impor tance Even so, price remains one of the most important elements that determines a fi rm’s market share and profi tability Price is the only element in the marketing mix that produces revenue; all other ele ments represent costs Price is also one of the most fl exible marketing mix elements Unlike QSPEVDU GFBUVSFT BOE DIBOOFM DPNNJUNFOUT QSJDFT DBO CF DIBOHFE RVJDLMZ"U UIF TBNF time, pricing is the number one problem facing many marketing executives, and many companies not handle pricing well Some managers view pricing as a big headache, preferring instead to focus on other marketing mix elements However, smart managers Find more at www.downloadslide.com Chapter 10 | Pricing: Understanding and Capturing Customer Value 313 5IFBNPVOUPGNPOFZDIBSHFEGPSB QSPEVDUPSTFSWJDF PSUIFTVNPGUIF WBMVFTUIBUDVTUPNFSTFYDIBOHFGPSUIF CFOFmUTPGIBWJOHPSVTJOHUIFQSPEVDU PSøTFSWJDF treat pricing as a key strategic tool for creating and capturing customer value Prices have a direct impact on a fi rm’s bottom line A small percentage improvement in price can generate a large percentage increase in profi tability More important, as part of a company’s overall value proposition, price plays a key role in creating customer value and building customer relationships “Instead of running away from pricing,” says an expert, “savvy marketers are embracing it.”2 Objective Major Pricing Strategies Price Identify the three major pricing strategies and discuss the importance of understanding DVTUPNFSWBMVFQFSDFQUJPOT company costs, and competitor strategies when setting prices The price the company charges will fall somewhere between one that is too low to produce Figure 10.1 summarizes the a profi t and one that is too high to produce any demand major considerations in setting price Customer perceptions of the product’s value set the ceiling for prices If customers perceive that the product’s price is greater than its value, they will not buy the product Likewise, product costs set the fl oor for prices If the com pany prices the product below its costs, the company’s profi ts will suffer In setting its price between these two extremes, the company must consider several external and internal fac tors, including competitors’ strategies and prices, the overall marketing strategy and mix, and the nature of the market and demand 'JHVSFTVHHFTUTUISFFNBKPSQSJDJOHTUSBUFHJFTDVTUPNFSWBMVFCBTFEQSJDJOH DPTU CBTFEQSJDJOH BOEDPNQFUJUJPOCBTFEQSJDJOH $VTUPNFS7BMVF#BTFE1SJDJOH $VTUPNFSWBMVFCBTFEQSJDJOH 4FUUJOHQSJDFCBTFEPOCVZFST QFSDFQUJPOTPGWBMVFSBUIFSUIBOPOUIF TFMMFSTDPTU In the end, the customer will decide whether a product’s price is right Pricing decisions, like other marketing mix decisions, must start with customer value When customers buy a product, they exchange something of value (the price) to get something of value (the CFOFàUT PG IBWJOH PS VTJOH UIF QSPEVDU &GGFDUJWF DVTUPNFSPSJFOUFE QSJDJOH JOWPMWFT understanding how much value consumers place on the benefi ts they receive from the product and setting a price that captures that value $VTUPNFSWBMVFCBTFEQSJDJOH uses buyers’ perceptions of value as the key to pric JOH7BMVFCBTFEQSJDJOHNFBOTUIBUUIFNBSLFUFSDBOOPUEFTJHOBQSPEVDUBOENBSLFUJOH program and then set the price Price is considered along with all other marketing mix variables before the marketing program is set Figure 10.2DPNQBSFTWBMVFCBTFEQSJDJOHXJUIDPTUCBTFEQSJDJOH"MUIPVHIDPTUT BSFBOJNQPSUBOUDPOTJEFSBUJPOJOTFUUJOHQSJDFT DPTUCBTFEQSJDJOHJTPGUFOQSPEVDUESJWFO The company designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profi t Marketing must then convince buyers that the product’s value at that price justifi es its purchase If the price turns out to be too high, the company must settle for lower markups or lower sales, both resulting in disappointing profi ts 7BMVFCBTFEQSJDJOHSFWFSTFTUIJTQSPDFTT5IFDPNQBOZàSTUBTTFTTFTDVTUPNFSOFFET and value perceptions It then sets its target price based on customer perceptions of value The targeted value and price drive decisions about what costs can be incurred and the resulting product design As a result, pricing begins with analyzing consumer needs and value perceptions, and the price is set to match perceived value FIGURE | 10.1 $POTJEFSBUJPOTJO4FUUJOH1SJDF 1SPEVDU DPTUT If customers perceive that a product’s price is greater than its value, they won’t buy it If the company prices the product below its costs, profits will suffer Between the two extremes, the “right” pricing strategy is one that delivers both value to the customer and profits to the company 1SJDFGMPPS No profits below this price $PNQFUJUJPOBOEPUIFS FYUFSOBMGBDUPST $PNQFUJUPSTTUSBUFHJFTBOEQSJDFT BSLFUJOHTUSBUFHZ PCKFDUJWFT BOENJY /BUVSFPGUIFNBSLFUBOEEFNBOE $POTVNFS QFSDFQUJPOT PGWBMVF 1SJDFDFJMJOH No demand above this price 1SJDF Find more at www.downloadslide.com 314 Part |%FTJHOJOHB$VTUPNFS%SJWFO4USBUFHZBOE.JY FIGURE | 10.2 7BMVF#BTFE1SJDJOHWT $PTU#BTFE1SJDJOH Costs play an important role in setting prices But, like everything else in marketing, good pricing starts with the customer $PTUCBTFEQSJDJOH %FTJHOB HPPEQSPEVDU %FUFSNJOF QSPEVDUDPTUT 4FUQSJDFCBTFE PODPTU $POWJODFCVZFST PGQSPEVDUT WBMVF 4FUUBSHFUQSJDFUP NBUDIDVTUPNFS QFSDFJWFEWBMVF %FUFSNJOFDPTUT UIBUDBOCF JODVSSFE %FTJHOQSPEVDU UPEFMJWFSEFTJSFE WBMVFBUUBSHFU QSJDF VBMVFCBTFEQSJDJOH "TTFTTDVTUPNFS OFFETBOEWBMVF QFSDFQUJPOT It’s important to remember that “good value” is not the same as “low price.” For ex ample, a Steinway piano—any Steinway piano—costs a lot But to those who own one, a Steinway is a great value:3 Perceived value: A Steinway piano—any Steinway piano—costs a lot But to those who own one, price is nothing; the Steinway experience is everything ROBERT CAPLIN/The New York Times A Steinway grand piano typically runs anywhere from $55,000 to as high as several hundred thousand dollars The most popular model sells for around $87,000 But ask anyone who owns a Steinway grand piano, and they’ll tell you that, when it comes to Steinway, price is nothing; the Steinway experience is everything Steinway makes very IJHIRVBMJUZQJBOPTIBOEDSBGUJOHFBDI4UFJOXBZSFRVJSFT up to one full year But, more importantly, owners get the 4UFJOXBZNZTUJRVF5IF4UFJOXBZOBNFFWPLFTJNBHFTPG classical concert stages and the celebrities and performers who’ve owned and played Steinway pianos across more than 160 years #VU 4UFJOXBZT BSFOU KVTU GPS XPSMEDMBTT QJBOJTUT BOE UIF XFBMUIZ /JOFUZOJOF QFSDFOU PG BMM 4UFJOXBZ buyers are amateurs who perform only in their dens To such customers, whatever a Steinway costs, it’s a small price to pay for the value of owning one “A Steinway takes you places you’ve never been,” says an ad As one Steinway owner puts it, “My friendship with the Steinway piano is one of the most important and beautiful things in my life.” Who can put a price on such feelings? A company will often fi nd it hard to measure the value customers attach to its product For example, calculating the cost of ingredients in a meal at a fancy restaurant is relatively easy But assigning value to other satisfactions such as taste, environment, relaxation, con versation, and status is very hard Such value is subjective; it varies both for different con sumers and different situations Still, consumers will use these perceived values to evaluate a product’s price, so the company must work to measure them Sometimes, companies ask consumers how much they would pay for a basic product and for each benefi t added to the offer Or a company might conduct experiments to test the perceived value of different product offers Accord ing to an old Russian proverb, there are two fools in every market—one who asks too much and one who asks too little If the seller charges more than the buyers’ perceived value, the company’s sales will suffer If the seller charges less, its products sell very well, but they produce less revenue than they would if they were priced at the level of perceived value 8FOPXFYBNJOFUXPUZQFTPGWBMVFCBTFEQSJDJOHHPPEWBMVFQSJDJOH and WBMVFBEEFE QSJDJOH (PPE7BMVF1SJDJOH (PPEWBMVFQSJDJOH Offering just the right combination of RVBMJUZBOEHPPETFSWJDFBUBGBJSQSJDF The Great Recession of 2008 to 2009 caused a fundamental and lasting shift in consumer at UJUVEFTUPXBSEQSJDFBOERVBMJUZ*OSFTQPOTF NBOZDPNQBOJFTIBWFDIBOHFEUIFJSQSJDJOH approaches to bring them in line with changing economic conditions and consumer price perceptions More and more, marketers have adopted HPPEWBMVF QSJDJOH strategies— oGGFSJOHUIFSJHIUDPNCJOBUJPOPGRVBMJUZBOEHPPETFSWJDFBUBGBJSQSJDF Find more at www.downloadslide.com Chapter 10 | Pricing: Understanding and Capturing Customer Value 315 *ONBOZDBTFT UIJTIBTJOWPMWFEJOUSPEVDJOHMFTTFYQFOTJWFWFSTJPOTPGFTUBCMJTIFE CSBOEOBNFQSPEVDUT'PSFYBNQMF GBTUGPPESFTUBVSBOUTTVDIBT5BDP#FMMBOE.D%PO ald’s offer value menu and dollar menu items Every car company now offers small, inex pensive models better suited to tighter consumer budgets and thriftier spending habits P&G has introduced “Basic” versions of its Bounty and Charmin brands that sell for less BOESFDFOUMZMBVODIFECBSHBJOQSJDFE(BJOEJTITPBQ JUTàSTUOFXEJTITPBQJOBMNPTU years The company has also reduced the size of some Tide laundry detergent packages GSPN Ň PVODFT UP Ň PVODFT BOE TFMMT UIF TNBMMFSTJ[F QBDLBHFT GPS QFSDFOU MFTT BU Walmart and other discount stores “Today, when you ask the consumer, ‘What is value?’ the No answer is ‘brand names for less,’” says a pricing expert.4 *O PUIFS DBTFT HPPEWBMVF QSJDJOH IBT JOWPMWFE SFEFTJHOJOH FYJTUJOH CSBOET UP PGGFS NPSFRVBMJUZGPSBHJWFOQSJDFPSUIFTBNFRVBMJUZGPSMFTT4PNFDPNQBOJFTFWFOTVDDFFECZ PGGFSJOHMFTTWBMVFCVUBUWFSZMPXQSJDFT'PSFYBNQMF QBTTFOHFSTáZJOHMPXDPTUEuropean airline Ryanair won’t get much in the way of free amenities, but they’ll like the airline’s un 4JNJMBSMZ OPGSJMMT4OBQ'JUOFTTJTXFMM believably low prices (see Real Marketing 10.1) positioned to take advantage of either good or bad economic conditions: Although some gym chains struggled during the re cent recession—Bally’s Total Fitness fi led for bank SVQUDZUXJDFIPVS4OBQ'JUOFTTBDUVBMMZexpanded the number of its clubs and its revenues doubled The franchise chain did all this despite charging members only $35 per month with easy cancellation fees Its TFDSFU " OPGSJMMT BQQSPBDI SFJOGPSDFE CZ UIF NPUUP “Fast, Convenient, Affordable.” The small gyms—only TRVBSF GFFUUZQJDBMMZ IBWF àWF USFBENJMMT UXP stationary bikes, fi ve elliptical machines, and weight FRVJQNFOU 8IBUT JNQPSUBOU JT XIBU UIFZ EPOU IBWFOPDMBTTFT TQBSPPNT POTJUFDIJMEDBSF PSKVJDF bars Few clubs have showers and most are staffed only 25 to 40 hours a week The sweet spot of their UBSHFUNBSLFUJTNBSSJFEUPZFBSPMETXJUILJET who live nearby and are busy enough that they cannot afford more than an hour a day to go to the gym.5 "O JNQPSUBOU UZQF PG HPPEWBMVF QSJDJOH BU UIF retail level is FWFSZEBZ MPX QSJDJOH (EDLP) EDLP in volves charging a constant, everyday low price with (PPEWBMVFQSJDJOH8JUIJUTOPGSJMMTQPTJUJPOJOHBOEMPXQSJDFT few or no temporary price discounts Retailers such as Snap Fitness is well positioned to take advantage of either good or bad economic conditions $PTUDPBOE-VNCFS-JRVJEBUPSTQSBDUJDF&%-1)PX Snap Fitness ever, the king of EDLP is Walmart, which practically defi ned the concept Except for a few sale items every month, Walmart promises everyday low prices on everything it sells In contrast, IJHIMPX QSJDJOH involves charging higher QSJDFTPOBOFWFSZEBZCBTJTCVUSVOOJOHGSFRVFOUQSPNPUJPOTUPMPXFSQSJDFTUFNQPSBSJMZ POTFMFDUFEJUFNT%FQBSUNFOUTUPSFTTVDIBT,PIMTBOE.BDZTQSBDUJDFIJHIMPXQSJDJOH CZIBWJOHGSFRVFOUTBMFEBZT FBSMZCJSETBWJOHT BOECPOVTFBSOJOHTGPSTUPSFDSFEJUDBSE holders 7BMVF"EEFE1SJDJOH 7BMVFBEEFEQSJDJOH "UUBDIJOHWBMVFBEEFEGFBUVSFTBOE TFSWJDFTUPEJGGFSFOUJBUFBDPNQBOZT PGGFSTBOEDIBSHJOHIJHIFSQSJDFT 7BMVFCBTFEQSJDJOHEPFTOUNFBOTJNQMZDIBSHJOHXIBUDVTUPNFSTXBOUUPQBZPSTFUUJOH low prices to meet competition Instead, many companies adopt WBMVFBEEFE QSJDJOH TUSBUFHJFT3BUIFSUIBODVUUJOHQSJDFTUPNBUDIDPNQFUJUPST UIFZBUUBDIWBMVFBEEFEGFB tures and services to differentiate their offers and thus support their higher prices For ex BNQMF FWFOBTSFDFTTJPOFSBDPOTVNFSTQFOEJOHIBCJUTMJOHFS TPNFNPWJFUIFBUFSDIBJOT are BEEJOH amenities and charging more rather than cutting services to maintain lower ad mission prices Some theater chains are turning their multiplexes into smaller, roomier luxury outposts The OFXQSFNJVNUIFBUFSTPGGFSWBMVFBEEFEGFBUVSFTTVDIBTPOMJOFSFTFSWFETFBUJOH IJHICBDLFE leather executive or rocking chairs with armrests and footrests, the latest in digital sound and TVQFSXJEFTDSFFOT EJOFJOSFTUBVSBOUTTFSWJOHàOFGPPEBOEESJOLT BOEFWFOWBMFUQBSLJOH 'PSFYBNQMF ".$5IFBUSFT UIFTFDPOEMBSHFTU"NFSJDBOUIFBUFSDIBJO PQFSBUFTNPSFUIBO 50 theaters with some kind of enhanced food and beverage amenities, including Fork & Screen Find more at www.downloadslide.com 316 Part |%FTJHOJOHB$VTUPNFS%SJWFO4USBUFHZBOE.JY 3FBM BSLFUJOH Ryanair: Really(PPE7BMVF1SJDJOH 'MZGPS'SFF The major airlines are struggling with difficult QSJDJOHTUSBUFHZEFDJTJPOTJOUIFTFUPVHIBJS USBWFM UJNFT 1SJDJOH TUSBUFHJFT WBSZ XJEFMZ 0OF BJSMJOF IPXFWFS BQQFBST UP IBWF GPVOE B SBEJDBM OFX QSJDJOH TPMVUJPO POF UIBU DVTUPNFST BSF TVSF UP MPWF BLF nZ ing free5IBUTSJHIU.JDIBFM0-FBSZ $&0 PG %VCMJOCBTFE 3ZBOBJS IBT B ESFBN UIBU TPNFEBZ BMM 3ZBOBJS QBTTFOHFST XJMM nZ GPS GSFF "OE XJUI B DVSSFOU BWFSBHF QSJDF PG QFSUJDLFU DPNQBSFEUPGPSDMPTFTU DPNQFUJUPS FBTZ+FU BOE B XIPQQJOH GPSiEJTDPVOUBJSMJOFw4PVUIXFTU 3ZBOBJSJT HFUUJOHDMPTFS &WFO XJUIPVU DPNQMFUFMZ GSFF nJHIUT 3ZBOBJS IBT CFDPNF &VSPQFT NPTU QPQVMBS DBSSJFS -BTU ZFBS 3ZBOBJS nFX NJMMJPO QBTTFOHFSTUPNPSFUIBO&VSPQFBOEFT UJOBUJPOT JO DPVOUSJFT 5IF CVEHFU BJSMJOF JT BMTP &VSPQFT NPTU QSPmUBCMF POF 0WFS UIF QBTU EFDBEF FWFO BT UIF HMPCBM BJSMJOF JOEVTUSZ DPMMFDUJWFMZ MPTU OFBSMZ CJMMJPO 3ZBOBJSIBTUVSOFEIFBMUIZOFUQSPmUTJOøPVU PG ø ZFBST (JWFO UIF QSPTQFDUT PG SJTJOH GVFM DPTUT DPMMBQTJOH &VSPQFBO FDPOPNJFT and other troubled times ahead for the airline JOEVTUSZ 3ZBOBJS TFFNT XFMM QPTJUJPOFE UP XFBUIFSUIFUVSCVMFODF 8IBUT UIF TFDSFU 3ZBOBJST GSVHBM DPTU TUSVDUVSF NBLFT FWFO DPTUDPOTDJPVT 4PVUI XFTUMPPLMJLFBSFDLMFTTTQFOEFS*OBEEJUJPO UIF*SJTIBJSMJOFNBLFTNPOFZPOFWFSZUIJOHbut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ports and offering unassigned passenger TFBUJOH #VU3ZBOBJSIBTTJODFUBLFO4PVUIXFTUT MPXDPTU QSJDJOH NPEFM FWFO GVSUIFS 8IFO JU DPNFTUPLFFQJOHDPTUTEPXO 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TUBUFT #VU iUIFQIZTJDBMQSPDFTTPGHFUUJOHGSPNQPJOU" UPQPJOU#TIPVMEOUCFQMFBTBOU OPSFOSJDI JOH *U TIPVME CF RVJDL FGmDJFOU BGGPSEBCMF BOE TBGFw "T 3ZBOBJST TVDDFTT TVHHFTUT DVTUPNFST TFFN UP BHSFF 1BTTFOHFST BSF HFUUJOHFYBDUMZXIBUUIFZXBOUPVUSBHFPVTMZ MPXQSJDFT"OEUIFBEEJUJPOBMQVSDIBTFTBSF EJTDSFUJPOBSZ %FTQJUF UIF MBDL PG BNFOJUJFT NPTU passengers seem to appreciate rather than SFTFOU 3ZBOBJST PQFO BOE TUSBJHIUGPSXBSE BQQSPBDI UP QSJDJOH $PNQBSFE XJUI UIF TPDBMMFE iTPQIJTUJDBUFEw BQQSPBDIFT PG PUIFS BJSMJOFT QSPDMBJNT POF QBTTFOHFS i* QSFGFS DSVEF XBZT XJUI JUT PGUFO EJSUDIFBQ UJDLFUT BOEø TIBNFMFTT FGGPSUTUPHFUJUTIBOEJONZQVSTFw | Pricing: Understanding and Capturing Customer Value "OE DPNNFOUJOH PO XIBU TPNF BOBMZTUT IBWF SFGFSSFE UP BT 3ZBOBJSFT iDBUUMFDBSw BQQSPBDI UP QBTTFOHFST BOPUIFS HPPE IVNPSFEnJFSPCTFSWFT i0OMZ0-FBSZXJMMDBMM ZPVBDPX MJDLIJTDIPQT BOEFYQMBJOIPXIF QMBOTUPDBSWFZPVVQGPSEJOOFSw 0-FBSZT QIJMPTPQIZ UIBU DPNNFSDJBM BJSQBTTFOHFSTEPOUOFFEUPCFDPEEMFEUP NBLF UIFN MPZBM BQQFBST UP nZ JO UIF GBDF 317 PG NPEFSO NBSLFUJOHT GPDVT PO QSPWJEJOH an FYDFQUJPOBM DVTUPNFS FYQFSJFODF #VU 3ZBOBJS JT QSPWJOH UIBU DPNQBOJFT DBO QSP WJEFDVTUPNFSWBMVFJONPSFXBZTUIBOPOF 8IFO ZPV MPPL BU 3ZBOBJST GBMMJOH QSJDFT BOE SJTJOH QSPmUT 0-FBSZT ESFBN PG nZJOH GPSGSFFEPFTOUTFFNTPGBSGFUDIFEBGUFSBMM With 3ZBOBJSTLOBDLGPSHPPEWBMVFQSJDJOH OPUFWFOUIFTLZTUIFMJNJU Sources: 2VPUFT BOE PUIFS JOGPSNBUJPO GSPN $FDJMJB 3PESJHVF[ i"JSMJOFT -PPL UP 3BJTF 3FWFOVF UIF 3ZBOBJS 8BZ w Forbes BSDI XXXGPSCFTDPNTJUFTDFDJMJBSPESJHVF[ +BOF -FVOH i3ZBOBJST 'JWF A$IFBQFTU POFZ4BWJOH 4DIFNFT w CNNTravel 0DUPCFS XXXDOODPNUSBWFM SZBOBJSNPOFZTBWJOHTDIFNFTJOEFYIUN 'FMJY (JMMFUUF i3ZBOBJST 0-FBSZ 5IF %VLF PG %JTDPNGPSU w #VTJOFTT week 4FQUFNCFS XXXCVTJOFTTXFFLDPNNBHB[JOFDPOUFOU@CIUN BOE 4UFWF 3PUIXFMM i3ZBOBJS-JGUT1SPmU(PBMBT8JOUFS$BQBDJUZ$VUT#VPZ'BSFT wBloomberg Businessweek +BOVBSZ XXXCMPPNCFSHDPNOFXTSZBOBJSMJGUTQSPmUHPBMPOXJOUFSDBQBDJUZIUNM VQHSBEFEMFBUIFSTFBUJOH TFBUTJEFTFSWJDF extensive menu including dinner offerings, beer, wine, and cocktails) and Cinema Suites (additional upscale food offerings in addition to premium cocktails and BO FYUFOTJWF XJOF MJTU TFBUTJEF TFSWJDF SFE MFBUIFS reclining chairs, and eight to nine feet of spacing between rows) So at the Cinema Suites at the AMC Easton 30 with IMAX in Columbus, Ohio, bring on the mango margaritas! For $9 to $15 a ticket (depending on the time and day), moviegoers are treated to reserved seat JOH B TUSJDU BOEPWFSPOMZ QPMJDZ SFDMJOJOH MFBUIFS seats, and the opportunity to pay even more to have dinner and drinks brought to their seats Such theaters are so successful that AMC plans to add more “Once people experience it,” says a company spokesperson, “more often than not they don’t want to go anywhere else.”6 7BMVFBEEFEQSJDJOH3BUIFSUIBODVUUJOHTFSWJDFTUPNBJOUBJOMPXFS admission prices, premium theaters such as AMC’s Cinema Suites are adding amenities and charging more “Once people experience it, they don’t want to go anywhere else.” Courtesy of AMC Theaters $PTUCBTFEQSJDJOH 4FUUJOHQSJDFTCBTFEPOUIFDPTUTPG QSPEVDJOH EJTUSJCVUJOH BOETFMMJOHUIF product plus a fair rate of return for effort BOESJTL $PTU#BTFE1SJDJOH 8IFSFBTDVTUPNFSWBMVFQFSDFQUJPOTTFUUIFQSJDFDFJM ing, costs set the fl oor for the price that the company can charge $PTUCBTFE QSJDJOH involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk A company’s costs may be an important element in its pric ing strategy Some companies, such as Walmart or Southwest Airlines, work to become the MPXDPTU QSPEVDFST in their industries Companies with lower costs can set lower prices that result in smaller margins but greater sales and profi ts However, other companies—such as Apple, BMW, and Steinway—intentionally pay higher costs so that they can add value and claim higher prices and margins For example, it costs more to make a “handcrafted” Steinway QJBOPUIBOB:BNBIBQSPEVDUJPONPEFM#VUUIFIJHIFSDPTUTSFTVMUJOIJHIFSRVBMJUZ KVTUJ GZJOHUIBUFZFQPQQJOH QSJDF5IFLFZJTUPNBOBHFUIFTQSFBECFUXFFODPTUTBOE prices—how much the company makes for the customer value it delivers Find more at www.downloadslide.com 318 Part |%FTJHOJOHB$VTUPNFS%SJWFO4USBUFHZBOE.JY Types of Costs Fixed costs (overhead) $PTUTUIBUEPOPUWBSZXJUIQSPEVDUJPO PSTBMFTMFWFM Variable costs $PTUTUIBUWBSZEJSFDUMZXJUIUIFMFWFM PGQSPEVDUJPO Total costs 5IFTVNPGUIFmYFEBOEWBSJBCMFDPTUT GPSBOZHJWFOMFWFMPGQSPEVDUJPO A company’s costs take two forms: fi xed and variable Fixed costs (also known as over head) are costs that not vary with production or sales level For example, a company must pay each month’s bills for rent, heat, interest, and executive salaries regardless of the company’s level of output Variable costs vary directly with the level of production Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other inputs Although these costs tend to be the same for each unit produced, they are called variable costs because the total varies with the number of units produced Total costs are the sum of the fi xed and variable costs for any given level of production Management wants to charge a price that will at least cover the total production costs at a given level of production The company must watch its costs carefully If it costs the company more than its com petitors to produce and sell a similar product, the company will need to charge a higher price or make less profi t, putting it at a competitive disadvantage Costs at Different Levels of Production To price wisely, management needs to know how its costs vary with different levels of production For example, suppose Texas Instruments (TI) built a plant to produce 1,000 Figure 10.3A TIPXT UIF UZQJDBM TIPSUSVO BWFSBHF DPTU DVSWF calculators per day (SRAC) It shows that the cost per calculator is high if TI’s factory produces only a few per day But as production moves up to 1,000 calculators per day, the average cost per unit decreases This is because fi xed costs are spread over more units, with each one bear ing a smaller share of the fi xed cost TI can try to produce more than 1,000 calculators per day, but average costs will increase because the plant becomes ineffi cient Workers have to wait for machines, the machines break down more often, and workers get in each other’s way If TI believed it could sell 2,000 calculators a day, it should consider building a larger plant The plant would use more effi cient machinery and work arrangements Also, the unit cost of producing 2,000 calculators per day would be lower than the unit cost PGQSPEVDJOH VOJUTQFSEBZ BTTIPXOJOUIFMPOHSVOBWFSBHFDPTU -3"$ DVSWF ( Figure 10.3B *OGBDU B DBQBDJUZQMBOUXPVMECFFWFONPSFFGàDJFOU BDDPSE JOHUP'JHVSF##VUB EBJMZQSPEVDUJPOQMBOUXPVMECFMFTTFGàDJFOUCFDBVTF of increasing diseconomies of scale—too many workers to manage, paperwork slowing UIJOHTEPXO BOETPPO'JHVSF#TIPXTUIBUB EBJMZQSPEVDUJPOQMBOUJTUIF best size to build if demand is strong enough to support this level of production Costs as a Function of Production Experience What’s the point of all the cost curves in this and the next few figures? Costs are an important factor in setting price, and companies must understand them well! 43"$ 2VBOUJUZQSPEVDFEQFSEBZ "$PTUCFIBWJPSJOBGJYFETJ[FQMBOU $PTUQFSVOJU FIGURE | 10.3 $PTUQFS6OJUBU%JGGFSFOU-FWFMT of Production per Period $PTUQFSVOJU Suppose TI runs a plant that produces 3,000 calculators per day As TI gains experience in producing calculators, it learns how to it better Workers learn shortcuts and become NPSF GBNJMJBS XJUI UIFJS FRVJQNFOU 8JUI QSBDUJDF UIF XPSL CFDPNFT CFUUFS PSHBOJ[FE BOE5*àOETCFUUFSFRVJQNFOUBOEQSPEVDUJPOQSPDFTTFT8JUIIJHIFSWPMVNF 5*CFDPNFT more effi cient and gains economies of scale As a result, the average cost tends to decrease Figure 10.4.7 Thus, the aver with accumulated production experience This is shown in age cost of producing the fi rst 100,000 calculators is $10 per calculator When the company has produced the fi rst 200,000 calculators, the average cost has fallen to $8.50 After its 43"$ -3"$ 2VBOUJUZQSPEVDFEQFSEBZ #$PTUCFIBWJPSPWFSEJGGFSFOUTJ[FQMBOUT Find more at www.downloadslide.com Chapter 10 FIGURE | 10.4 $PTUQFS6OJUBTB'VODUJPO of Accumulated Production: 5IF&YQFSJFODF$VSWF $PTUQFSVOJU "DDVNVMBUFEQSPEVDUJPO | Pricing: Understanding and Capturing Customer Value 319 accumulated production experience doubles again to 400,000, the average cost is $7 This drop in the average cost with accumulated production experience is called the experience curve (or the learning curve) *GBEPXOXBSETMPQJOHFYQFSJFODFDVSWFFYJTUT UIJTJTIJHIMZTJHOJàDBOUGPSUIFDPN pany Not only will the company’s unit production cost fall, but it will fall faster if the com pany makes and sells more during a given time period But the market has to stand ready to buy the higher output And to take advantage of the experience curve, TI must get a large market share early in the product’s life cycle This suggests the following pricing strategy: TI should price its calculators low; its sales will then increase, and its costs will decrease through gaining more experience, and then it can lower its prices further Some companies have built successful strategies around the experience curve However, BTJOHMFNJOEFEGPDVTPOSFEVDJOHDPTUTBOEFYQMPJUJOHUIFFYQFSJFODFDVSWFXJMMOPUBMXBZT XPSL&YQFSJFODFDVSWFQSJDJOHDBSSJFTTPNFNBKPSSJTLT5IFBHHSFTTJWFQSJDJOHNJHIUHJWF the product a cheap image The strategy also assumes that competitors are weak and not willing to fight it out by meeting the company’s price cuts Finally, while the company is CVJMEJOHWPMVNFVOEFSPOFUFDIOPMPHZ BDPNQFUJUPSNBZàOEBMPXFSDPTUUFDIOPMPHZUIBU lets it start at prices lower than those of the market leader, which still operates on the old experience curve $PTU1MVT1SJDJOH The simplest pricing method is DPTUQMVT QSJDJOH (or markup pricing)—adding a stan dard markup to the cost of the product Construction companies, for example, submit job bids by estimating the total project cost and adding a standard markup for profit Lawyers, accountants, and other professionals typically price by adding a standard markup to their costs Some sellers tell their customers they will charge cost plus a specified markup; for ex ample, aerospace companies often price this way to the government To illustrate markup pricing, suppose a toaster manufacturer had the following costs and expected sales: Experience curve (learning curve) 5IFESPQJOUIFBWFSBHFQFSVOJU production cost that comes with BDDVNVMBUFEQSPEVDUJPOFYQFSJFODF $PTUQMVTQSJDJOH NBSLVQ pricing) "EEJOHBTUBOEBSENBSLVQUPUIFDPTUPG UIFQSPEVDU Variable cost 'JYFEDPTUT &YQFDUFEVOJUTBMFT Then the manufacturer’s cost per toaster is given by the following: unit cost variable Cost $300,000 fi xed costs $10 $16 unit sales 50,000 Now suppose the manufacturer wants to earn a 20 percent markup on sales The manu facturer’s markup price is given by the following:8 unit cost $16 $20 (1 desired reture on sales) 0.2 markup price The manufacturer would charge dealers $20 per toaster and make a profi t of $4 per unit The dealers, in turn, will mark up the toaster If dealers want to earn 50 percent on the TBMFTQSJDF UIFZXJMMNBSLVQUIFUPBTUFSUP Find more at www.downloadslide.com 690 Indexes Harry, Debbie, 219 Harte, Susan, 197 Hasbro, 579 Hastings, Reed, 360–361, 361n1 HateStarbucks.com, 114 Hatton, Celia, 303n27 HauteLook, 409 Havaianas, 470–471 Hawkins, Del I., 133 Hayes, John, 295n19 Haysbert, Dennis, 455 HBO, 533 Healey, James R., 591n36 Hearts On Fire, 236, 236 Heilman, Jeff, 624n30 Hein, Kenneth, 103n28, 327n14, 409n19 Heinz, 273, 430, 438 Helle, Pekka, 42n30, 43n32 Hello Kitty, 272, 583 Helm, Bert, 366n2 Hempel, Jesi, 483n1 Hendricks, Barbara, 490n10 Henkel, 352 Henshaw, Steve, 339n5 Heraclitus, 90, 92 Hermes, 407 Hermoso, Tito, 459n6 Herrera, Tilde, 622 Hertz, 227, 369, 563, 565 Heskett, James L., 261n23 Heussner, Ki Mae, 147n31 Hibbard, Casey, 39n21, 202 Hill, Kashmir, 40n22 Hilton, 587 Hiltzik, Michael, 551 Himler, Peter, 433 Hirai, Kazuo, 97 Hitachi, 283 Hochman, Paul, 259n20 Hoffmann, Melissa, 523n14 Hogan, John, 313n2, 326n12 Hogan, John E., 336n2, 352n14 Hohner, 557 Holiday Inn, 366, 369, 402, 549, 557 Holiday Inn Express, 237 Hollister, 75, 271 Holmes, Elizabeth, 343n8, 611n14 Holstein, William J., 584n26 Holthaus, David, 349 Home Depot, 64, 81, 94, 153, 199, 220, 237, 327, 369, 372, 373, 381, 383, 385, 396, 399, 405, 408, 410, 414, 445, 487, 563 Home Shopping Network, 422, 542 Hometown, 405 Honda, 103, 184, 283, 325, 330, 363, 479, 563, 587 Honda of America, 616 Honest Tea, 232 Honomichl, Jack, 130n10 Hoover, 128 Hoover, Stephen, 119 Hoovers, 493 Horizon Organic, 255 Hormel, 432–433 Hornsby, Heba, 39n21 Horovitz, Bruce, 164n12, 480 Horse, Austin, 451 Horstein, Scott, 126n5 Hot Mama, 321, 321 Hot Wheels, 299 Houpt, Simon, 617n22 House, Martha, 86–87 Hoyer, Wayne D., 169n20 HP (Hewlett-Packard), 29, 96, 119, 318, 364, 373, 382, 524, 565 Hsieh, Tony, 262, 263 Hsu, Tiffany, 335n1 Huang, Ming-Hui, 265n28 Huffington Post, 554 Huffington, Arianna, 554, 554n8 Huggies, 376, 468 Hughes, Nick, 382n21 Hulu, 64, 91, 100, 266, 360, 361, 390 Humes, Edward, 617n23 Hummer, 70, 274 Humphrey, Michael, 92n1 Hunger Games, 151 Huntington Learning Center, 369 Huston, Larry, 289 Hymowitz, Carol, 405 Hypios, 287 Hyundai, 45 I IBM, 33, 119, 147, 190, 193, 201–202, 223, 235, 252, 267, 277, 382, 482–483, 489, 575, 583, 608 IBM Global Assess Recovery Services, 617 iCarly, 272 Iezzi, Teressa, 563n21 IGA (Independent Grocers Alliance), 401, 402 Iggy Pop, 219 iGoogle, 307 IHOP, 232 IKEA, 93–94, 167, 337, 385, 462, 575, 581–582, 583, 597 Impreza, 307 In-N-Out Burger, 269 Infiniti Q78, 233X Infor, 384 InfoScan, 131 Ingersoll, John, 522 InnoCentive, 287 Intel, 33, 277 Interactive Advertising Bureau, 537 Interbrand of London, 592 International Chamber of Commerce, 147 International Consumer Electronics Show, 506 International Design Excellence Awards, 283 International Paper, 628–630 Internet Bid Board System, 205 Internet Crime Complaint Center, 232 Interpublic Group of Companies, 303 InterVu, 136 iPad, 85, 180, 221, 237, 249–250, 269, 283, 285, 298, 299, 429, 461, 473, 552, 553, 554, 583, 591, 593, 608 iPhone, 74, 180, 207, 221, 229, 236, 283, 285, 287, 295, 306, 336–337, 355, 552, 559–560, 583, 608 iPod, 97, 124, 125, 180, 272, 295, 363, 559–560, 561, 592, 608 Irwin, Tanya, 103n27 Ishikawa, Eriko, 594n43 Israel, Shel, 511 Istanbul Cevahir Shopping, 411 iTunes, 221, 268, 295, 356, 361, 363, 371, 391, 549, 615 J J Crew, 342, 400, 561 Jackson, Anna-Louise, 123n1 Jaguar, 569 Jain, Subhash C., 146n29 James, Frank, 549n2 James, LeBron, 162, 220, 235, 455 Jana, Reena, 254n8 Find more at www.downloadslide.com Indexes Janet, Bob, 257n16 Jannarone, John, 400n9 Jared, 463 Jargon, Julie, 99n11, 230n22, 375n13 Jarman, Abbie, 94n3 JCPenney, 106, 169, 271, 342, 344, 397 Jeep Wrangler, 461 JELL-O, 216, 270, 467, 591 Jelly Belly, 269 JENNIE-O, 432–433 JetBlue Airways, 35–36, 39, 164, 269, 371, 557 Jewel-Osco, 419 JH Audio, 230 Jif, 167, 301 Jiffy Lube, 402, 402 Jink, Beth, 551 Jobs, Steve, 54, 98, 207, 559–560 Joe, Ryan, 456n2 Joes Jeans, 321 Joffrey Ballet, 229 John Deere, 230, 370, 438, 445 Johnson & Johnson, 33, 103, 165, 303, 509, 553, 555 Johnson, Bradley, 103n27 Johnson, Caitlin, 460n8 Johnson, Eric, 511 Johnson, Mark W., 349 Johnson, Morieka, 171 Johnson, Ray William, 91 Johnson, Robert, 297n21 Johnson, Sheree L., 274n44 Jopson, Barney, 584n27 Jordan, Michael, 235 Joseph, Jim, 560 Jouret, Guido, 287n8 Jovoto, 287 JWT, 462 K Kamangar, Salar, 91 Kane, Yukari Iwantani, 473n26 Kang, Cecilia, 536n49 Kang, Shinhye, 283n1 Kansal, Purva, 178n27 Kanter, Roasbeth Moss, 625n35 Kaplan University, 241 Kaplan, David, 409n20 Kaplan, David A., 69n8 Karamchandani, Ashish, 347n12 Kardashian, Kim, 163–164, 449 KarmSolar Inc, 188–189 Karp, Gregory, 115 Karp, Hannah, 271n37 Kashi, 463 Katchpole, Molly, 114 Kaye, Leon, 380n18 Kazakina, Katya, 297n21 KB Toys, 408, 409 KC Masterpiece, 272 Keds, 100 Keegan, Warren J., 146n29, 590n34, 593n40 Keen, 553 Kelleher, Herb, 32 Kelleher, Kevin, 361n1, 543 Keller, Kevin Lane, 27n3, 71n9, 80n15, 169n20, 193n3, 194n5, 216n3, 221n9, 224n15, 224n16, 234n28, 236n29, 258n18, 266n29, 267n33, 301n25, 302, 315n5, 486n2, 520n6, 557n14, 560n15 Kellogg Company, 70, 148, 167, 270, 273, 299, 341, 440 Kendall, Brent, 370n8, 607n5 Kenmore, 405 691 Kennedy, John F., 106 Kent, Muhtar, 572–573 Kessler, Sarah, 265n27 Kestenbaum, David, 171 KFC, 62, 303, 366, 375, 428, 467, 583, 592 Khanna, Tarun, 619n25 Khalifa, Khalil, 75 Kharif, Olga, 179n29 Kia Motors, 216, 479 Kickstarter, 117 Kid Rock, 217 Kidston, Cath, 331 Kiefaber, David, 216n4 Kiehl’s, 378 Kikkoman, 296 Kilar, Jason, 266, 266n30 Kiley, David, 466n16 Kim, Miyoung, 283n1 Kim, W Chan, 113n47, 554n9 Kimberly-Clark, 373, 560 Kimberly, S., 427n1 Kindle, 25, 151, 352, 371, 553, 554 Kindle Fire, 25, 85, 237, 338 Kinetz, Erika, 590 King, Carolyn, 409n20 King, Karen, 459n5 King, Karen Whitehill, 267n31 King, Stephen, 357 Kingori, Mamakamau, 573 Kingsford Match Light Charcoal Briquettes, 342 Kingsolver, Barbara, 357 Kinky-Curly Hair Products, 165 Kirchoff, David, 561 Kirin, 586 Kirkland, 376 Kirkman, 296 Klaassen, Abbey, 227n21 Klara, Robert, 216n3, 227n19, 556n10 Kleenex, 270 Klie, Leonard, 99n10 Kmart, 400, 409, 564 Knight, India, 231n23 Knight, Phil, 247 Ko, Vanessa, 115 Koch, Jim, 463 Kodak, 524, 549, 550–551 Koechner, David, 462 Koger, Eric, 227 Koger, Susan Gregg, 227 Koh, S.C.L., 395n1 Kohl’s, 169, 315, 321, 397, 398, 404, 413, 444 Kohler, 322 Kohler Kallista, 322 Kohler Sterling, 322 Kohler, Kristin, 100 Komatsu, 562 Kornak, Joseph, 492n13 Korosec, Kirsten, 82n19 Kosner, Anthony, 475 Kotler, Philip, 27n3, 48n41, 71n9, 77n14, 80n15, 193n3, 194n5, 216n3, 221n9, 224n15, 225n16, 234n28, 236n29, 253n6, 253n7, 258n18, 266n29, 267n33, 301n25, 302, 315n5, 486n2, 520n6, 557n14, 560n15, 604n2, 614n18 Kowitt, Beth, 62n1, 324 Kozinets, Robert V., 132n13 Kraft, 91, 216, 274, 369, 373, 382, 458, 459, 535, 591 Kramer, Mark R., 33, 33n10 Krapp, 592 Krauss, Michael, 33n10 Find more at www.downloadslide.com 692 Indexes Kreindler, Derek, 137n17 Krishnaswamy, Suj, 486n2 Kristof, Nicholas D., 115 Kroc, Ray, 60 Kroger, 28, 112, 226, 368, 398, 401, 402, 419, 503, 592, 612, 621 Kromer, Harley, 169n20 Kronsberg, Matthew, 286n6 Krummert, Bob, 244 Kubzansky, Mike, 347n12 Kucera, Danielle, 338n4 Kumar, Nirmalya, 72n10, 77n14, 501n20 Kumar, V., 42n30, 43n32, 44n34 Kumon, 369 Kusturica, Emir, 279 Kwintessential, 196 Kwoh, Leslie, 561n16 L L.L Bean, 191, 345, 518 L’Oréal, 376, 378, 621 L’Oréal’s Men’s Expert line, 217 LaBorde, Ted, 381n19 LaCrosse, 599 Ladies’ Home Journal, 152 Lady Gaga, 219 Lafayette, Jon, 100n12 Lafley, A G., 293–294 Lalwani, Nishant, 347n12 Lamborghini, 251 Lamey, Lien, 271n37 Lamont, Judith, 409n20 Lampert, Edward, 404 Lancôme, 378 Land Cruiser, 233, 233, 255 Land Rover, 134, 233, 569 Landor Associates, 268, 269 Lands’ End, 404–405, 522 Lane Bryant, 405 Lane, Ronald, 459n5 Lane, W Ronald, 267n31 Lashinsky, Adam, 129n8 LASIK, 341 Last Call, 401 Latif, Ray, 129n9 Latin American Motorcycle Association, 102 Latin Billboard Music Awards, 102 Lauterborn, Robert, 77n14 Lavazza, 589 Lay’s, 272 Layfayette, Jon, 431n8 Leaf, 289 Lean Cuisine, 269 Learmonth, Michael, 531n33 Leary, Lynn, 352n16 Ledbetter, James, 495 Lee, 82, 218 Lee, Alex, 255 Lee, Don, 576n6 Lee, Josey Duncan, 269 Lee, Kyungmook, 619n25 Lee, Nancy, 253n6 Lee, Nancy R., 48n41 Leffew, Judd, 479 Legacy, 161, 307 LEGO CUUSOO, 286 LEGO Group, 286–287 Lemon, Katherine N., 43n32, 43n33, 82n19 LendingTree, 565 Leno, Jay, 440 Lenovo, 31, 347 Leonard, Annie, 609n9, 610 Leonard, Stew, 42 Lerner, Jeff, 147 Let’s Move, 28 Leung, Jane, 317 Levi Strauss, 102, 103, 270, 346, 400, 593 Levitt, Theodore, 29n7 Levy, Piet, 98n7, 100n12, 100n13 Lewis, Bredesen, 588n33 Lewis, Tanya, 491n12 LexisNexis, 128, 130 Lexmark International, 119 Lexus, 42, 45, 134–137, 135, 223, 236–237, 255, 267, 274, 375, 459, 517, 562 Lexus Advisory Board, 136 Lexus L592, 233X LG, 98, 461, 583 Li, Shan, 324 Liddell, Chuck, 479 Liddle, Alan J., 399n7 Liesse, Julie, 433, 473n28, 522n8 Life Is Good, 95, 277, 628 Life Savers, 273, 296 Lightco, Inc., 390 Liker, Jeffrey K., 378 Lilly, Bryan, 296n20 Lima, Adriana, 479 The Limited, 271 Lincoln, 104, 233, 569 Lincoln, Abraham, 106 Lindsay, Greg, 210 Linens ‘n Things, 408 LinkedIn, 109, 115, 200, 201, 202, 493, 494 Linksys, 208 Lippert, Barbara, 247n1 Lipton, 273 Listerine, 438, 555 Little Caeser’s Pizza, 467 Little Einsteins, 272 Living Social, 227, 228, 229 LivingSocial, 503 Livingston, Geoff, 287n8 Liyakasa, Kelly, 35n13 Llopis, Glenn, 324 Lockheed Martin, 204 Loechner, Jack, 526n23 Logility, 384 LOGO, 103 Lombardo, Jenné, 219 London, Theophilus, 219 Loopt, 228, 229 Lopez, Jennifer, 241 Los Angeles Fire Department, 39 Los Angeles Lakers, 515 Los Angeles’ Fiesta Broadway, 102 Love, Richard, 44 Lovemark, 269 Lowe’s, 199, 237, 370, 372, 373, 409, 445, 487, 563 Lowrider Tours, 102 Lowry, Adam, 621 Lubine, David A., 625n35 Lucy, 218 Lynley, Matt, 308 Lyons, Daniel, 25n1 Lysol, 595 M M&Ms, 220, 230, 469 Mac, 221, 559–560 Mack, Ann, 101n17 Mackey, John, 261 Find more at www.downloadslide.com Indexes MacMillan, Douglas, 531n36 Macy’s, 106, 142, 216, 315, 321, 389, 396, 398, 403, 404, 408, 440, 517, 524 Mad Magazine, 556 Mad Science Group, 402 Madagascar, 504 Madden, Normandy, 591n37, 593n41 Maddox, Kate, 202 Madi, Yumna, 189 Madigan, Kathleen, 47 Madonna, 219, 479 Magic Eraser, 273 Magic Reach, 273 Magill, Ken, 532n39 Mahoney, Sarah, 100n13 Maich, Steve, 560 Majka, Nicholas, 588n33 Makino Machine Tools, 201, 495–496 Makita, 593 Malär, Lucia, 169n20 Mangalindan, JP, 43n31 Mangano, Terry, 160n3 Manning, Kenneth C., 343n8 Margreta, Michael, 382n22 Mark, Monica, 573n1, 584n26 Marketing Research Association, 147, 148 Marks & Spencer, 150 Marmot, 191 Marn, Michael V., 352n14 Maroon 5, 224 Marriott, 258, 260, 530 Marriott International, 265 Mars, 118, 177, 469, 622 Marshall, Norman W., 42n30 Marshalls, 400 Martin, Andrew, 62n1 Martin, Janette S., 197 Martin, Jim, 189n1 Martin, Justin D., 345n10 Martin, Timothy W., 398n6 Martinez, Andres, 582n22 Martinez, Juan, 147n31 Mary Kay Cosmetics, 365, 372, 443 Maslow, Abraham, 171, 172, 172n22 Massachusetts Right to Repair Coalition, 568 Massage Envy, 369 Massmart, 584 MasterCard, 40, 303, 399, 535, 608 Mateschitz, Dietrich, 450–452 Matioli, Dana, 346n11 Matrix, 255 Mattel, 299, 624 Mauborgne, Renée, 113n47, 554n9 Mavi Jeans, 278–279 Max Havelaar Foundation, 423 Maxim, 468 Maximo Professional Services, 193 Maybelline, 378, 505 Mayer, Allan, 486n2 Mayo Clinic, 260 Maytag, 372 McCale, Sheilynn, 124n2 McCann Worldgroup, 303 McCarthy, E Jerome, 77n14 McCarty, Dawn, 551 McClean, Roy, 77n14 McClellan, Steve, 460n9 McDonald, Bob, 271, 289 McDonald, Maurice, 60 McDonald, Richard, 60 693 McDonald, Robert, 349 McDonald, Ronald, 60 McDonald’s, 27, 40, 45, 49, 60–62, 61, 64, 69, 72, 75–76, 94, 103, 133, 160, 162, 207, 231, 235, 236, 264, 266, 267, 268, 274, 277, 293, 315, 346, 351, 364, 369, 374, 375, 390, 402, 403, 405, 408, 414, 428, 434–435, 438, 439, 463, 470, 471, 504, 524, 527, 560, 561, 562, 563, 574, 575, 582, 583, 588, 590, 605 McGarvey, Robert, 492n14, 495, 495n17, 496n18 McGirt, Ellen, 120, 210 McGraw, Tim, 217, 356 McGregor, Jean, 126n5 McKay, Lauren, 147n31 McKendrick, Joe, 533n43 McKesson, 418 McMains, Andrew, 588n32 MediaLab, 140 MedTronic, 510 Meijer, 398, 399 Meineke Mufflers, 402 Meiners, Jens, 186 Men’s Health, 532 Mënaji.com, 217, 217n5 Mercedes, 134, 232, 236–237, 459 Mercedes GL Class, 222 Mercedes, Cardona, 524n16 Mercury, 259, 569 Mercury, Freddie, 219 Meredith Corporation, 152–153 Merrell, 522 Merrill Lynch, 96 Merry Maids, 402 Method, 49, 270, 430, 463, 621 Metro, 414 Meyers, Tiffany, 433n9 Micheals, 408 Michelin, 80, 80, 575 Michigan Economic Development Corporation, 28 Michigan.org, 29n6 Microsoft, 27, 97, 110, 114, 140, 141, 147, 267, 277, 283, 303, 307, 308, 369–370, 528, 538, 560, 583 Midwest Living, 152 Mielach, David, 203n13 Miemis, Venessa, 515n1 Migicovsky, Eric, 117 Mikasa, 398 Milano, Alyssa, 530 Mildon, Jed, 157 Miley, Marissa, 101n17 Miller beer, 563 Miller, Brandon, 103n27 Millstone, 351 Millward Brown Optimor, 583 MINI Cooper, 258, 555 Miramax, 515 Misonzhnik, Elaine, 408n18 Missoni, 409 Missouri State University, 277 Mitchell, Alan, 164n12, 166 Mittal, Vikas, 38n19 Modcloth.com, 227 Modern Family, 102, 473 Moen, 383 Mohn, Tanya, 103n28 Mohr, Jakki J., 44n34 Mohwak, 410 Moin, David, 226n18 Mojang, 286 Molson, 563 Monae, Janelle, 219 Mongrelluzzo, Bill, 380n18 Find more at www.downloadslide.com 694 Indexes Monocryl, 555 Monopoly, 298 Montana, Joe, 449 Montgomery, Michael, 625n31 Moore, Caulder, 243 Moore, Ellen, 172n23 Mop & Glo, 269 MORE, 152 Morgan, Spencer, 406n14 Moringa Milk Company, 586 Morphy, Erika, 511 Morran, Chris, 36n14 Morrison, Maureen, 351n13, 403n12 Morrison, Scott, 370n8 Morrissey, Brian, 139, 247n1, 428n1 Moss, Kate, 441 Motavalli, Jim, 289n10 Motel 28, 237, 269, 575 Motorola, 479, 592 Moumenine, Mo, 440n14 Mountain Dew, 165–166, 218, 273 Mr Clean, 273, 299, 338, 463 Mr Clean AutoDry, 273 Mr Clean Magic Eraser, 288, 289 Mr Handyman, 368, 369, 402 MSN, 525 MSNBC, 461 MTV Networks, 103 Mucinex, 595 Mug, 273 Mulally, Alan, 28, 259 Mulcahy, Anne, 118 Mulier, Tom, 326n11 Mullally, Alan, 569 Murphy, H Lee, 408n18 Murphy, Samantha, 227n20 Murshed, Feisal, 38n19 Murthi, B P S., 343 Musician’s Junkyard, 371 Mustafa, Isaiah, 432, 530 Mycoskie, Blake, 109 MyCoupster, 503 MyFleetAtPenske.com, 144 MyGulf, 446 Myriad Genetics, 568 Myser, Michael, 202n10, 232n26 Myspace, 392 myTransponder.com, 532 N Nagle, Thomas T., 313n2, 326n12, 336n2, 352n14 Nair, Hari, 349 Nam Kee Noodle Shop Company, 519–520 Nano, 103, 104 Napolitano, Maida, 106n34, 382n21 Narasimhan, Chakravarthi, 343 Narayandas, Das, 82n19, 193n3 Narus, James A., 193n3, 501n20 NASA, 64n2, 287 NASCAR, 39, 54 Nassauer, Sarah, 263 National Consumers League, 607 National Enquirer, 469 National Football League, 505 National Guard, 268 National Heart, Lung, and Blood Institute, 472 National Hockey League (NHL), 532 National Institutes of Health, 472 National Park Foundation, 629 National Recycling Coalition, 629 Nationwide Insurance, 170 Nature Valley, 190 Nau, 622 Nautica, 82, 218 Navigator, 104, 233 NBA, 162, 439, 440 NBCUniversal, 510 NBox, 330 Neff, Jack, 166n13, 169n20, 269, 269n34, 396n2, 397n3, 439n12, 445n19, 562n18 Neiman Marcus, 104, 222, 397, 398, 401, 522, 553 Nelson, Jane, 594n43 Nelson, Tammy R., 296n20 Nelson, Willie, 615 Nesta, Alessandro, 220 Nestlé, 33, 49, 160, 161, 375, 385, 463, 485, 529, 575, 579, 580 Netflix, 91, 268, 356, 360–361, 390, 517, 518, 535 NeuFlex, 555 Neuman, Andrew Adam, 462n13 NeuroFocus, 140 Neuticles, 171 Neutrogena, 75 New Balance, 31, 291–292 New York Times, 42, 113, 525 Newman, Andrew Adam, 103n28, 217n6, 430n4 Newmark, Craig, 554 News Corp, 392 Newsweek, 468 Newton, Casey, 157n1 Nextag.com, 530 NextBlue, 473, 475 Nexus tablet, 85 Nexus Q, 85 NFLShop.com, 479 Ngai, Joe, 519 Nickelodeon, 272 Nielsen Company, 130, 146, 151, 208, 222, 478, 479, 541, 556 Nike, 36, 49, 75, 103, 230, 235, 246–247, 249, 252, 258, 266, 267, 269, 272, 283, 300, 301, 327, 439, 440, 441, 458, 485, 532, 535, 553, 555, 557, 560, 575, 580, 581, 582, 583, 616, 620, 622 Nike Coach, 247 Nike Digital Sport, 247 Nike+, 247 Nike1iPod Sport Kit, 272 Niketown, 247 Nikon, 173, 174 Nintendo, 98, 583 Nishi, Dennis, 166 Nissan, 185, 232, 236, 277, 289, 330, 531 Nivea, 449 No Fear, 273 Nocera, Joe, 25n1 Nokia, 49, 293, 308, 591, 592, 594 Nook, 371 Nordstrom, 31, 36, 104, 218, 257, 278, 389, 397, 398, 403, 404, 533, 549, 553, 558 Nordstrom Rack, 401 North Face, 82, 165 The North Face, 191, 218 Novartis, 270 Nuckols, Ben, 115 Nudd, Tim, 167n14, 466n19, 475 Nutrish, 252 Nyffenegger, Bettina, 169n20 NYPD, 252 NyQuil, 469 Find more at www.downloadslide.com Indexes O O’Brien, Jeffrey, 547n1 O’Brien, Keith, 27n2, 62n1, 527n28 O’Leary, Michael, 316 O’Leary, Noreen, 440n13 O’Reilly Auto Parts, 504 O’Leary, Michael, 316 O’Leary, Noreen, 217n6 O’Malley, Gavin, 41n26 Oberhelman, Doug, 377 Ocean Spray, 273 Octagon, 296 Odyssey, 325 Offer, Vince, 524 Office Depot, 179, 304 OfficeMax, 408 Ogilvy Public Relations Worldwide, 472, 472n25 OgilvyAction, 396 Ohnsman, Alan, 587n30 Okazaki, Shintero, 593n40 Olay, 221 Olay Definity, 161 Olay ProX, 288 Olay Regenerist, 288, 289 Old Spice, 299, 432, 530 Oldsmobile, 70, 274 Olive Garden, 232 Olympics, 224 Omaha Steaks, 365 Omar, Aireen, 213 Omo, 562 Opel Astra, 599 Oracle, 141, 384 Oral B Pulsonic, 288, 289 Oral-B, 346 Orbitz, 103 Ordinario, Cai U., 577n9 Orek, 449 Oreo, 461, 591 Oscar Mayer, 458 Ostrow, Adam, 127n6 Otis Elevator, 575 Out, 102 Out Traveler, 102 Outback, 307, 504 Overstock.com, 342, 353, 400, 526–527, 541 OxiClean, 524 OXO, 86, 254–255, 450 Özbek, Rıfat, 278 P P&G (Procter & Gamble), 27, 81, 102, 109, 132, 161, 165, 167, 175, 217, 221, 225, 226, 267, 269, 271, 273, 274, 287, 288–289, 293–294, 295, 298, 299, 301, 315, 348, 349, 351, 352, 369, 376, 382, 383, 384, 396–397, 430, 436, 439, 456, 463, 464, 469, 489–490, 499, 500–501, 524, 528, 530, 552, 555, 560, 562, 608 P&G (Procter & Gamble) Professional Division, 203 Pace, 259 PajamaJeans, 524 Palmer, Alex, 142n22 Pampers, 267, 269, 288, 348, 376, 467 Pampers Swaddlers, 221 Panamera, 185 Panasonic, 157 Pandora, 91, 356, 390–391, 515 Panera Bread Company, 36, 269, 334–335 Pantene, 161, 232 Papa John’s, 123, 479 Paramount, 515 695 Pardee, Thomas, 475 Parekh, Rupal, 581n19 Parents Magazine, 152, 153, 222, 468 Parents.com, 152 Parikh, Rahul, 523n15 Parker, Mark, 247 Parpis, Eleftheria, 162n10, 620n26 Passat, 166 Passikoff, Robert, 263 Passions Network, 531 Patagonia, 49, 221, 621 Patel, Kunar, 468n20, 503n27, 533n43, 535 Patrana, Travis, 451 Patterson, James, 357 PayPal, 287, 515, 542, 543 PayPalSucks.com, 114 PayPass, 399, 535 Pebble Technology Corporation, 117 PEDIGREE, 619–620 Peerless Paper Company, 344 Peers, Martin, 430n3 Penenberg, Adam L., 140n21 Penn, Sean, 220 Penske Logistics, 385 Penske Truck Leasing, 144 Penteado, Claudia, 580 Pepitone, Julianne, 381n20 PepsiCo, 40, 112, 125, 127, 140, 165, 228, 255, 256, 272, 273, 274, 283, 303, 369, 463, 464, 488, 533, 563, 620, 622–623 Perdue, 255 Personicx, 168 Persson, Andreas, 82n19 Pet Airways, 170 Pet Rocks, 296, 297 Peters, Kevin, 28n5 Peterson, Tim, 161n9 Petplan USA, 170 Petrecca, Laura, 480 Pets.com, 392 PetSmart, 237, 398, 399, 408 PetZen, 171 Pew Forum on Religion & Public Life, 112n45 Pfanner, Eric, 588n32 Pfizer, 509 Phelps, Michael, 440, 463 The Philadelphia Channel, 91 Philadelphia Cream Cheese, 91 Philips AmbientLED, 622 Phillips, Rick, 498n19 Picture People, 469 Pien, Katty, 433n9 Pierson, David, 582n21 Piggly Wiggly, 380 Piling, David, 581n17 Pillsbury, 190, 272 Pink, 231 Pinterest, 39, 468, 472, 473, 525, 531 Pirate Brands, 555–556 Pixar, 65 Pizza Hut, 62, 123, 303, 402 Planet Out Inc., 102 PlanetFeedback.com, 528 PlanetOut.com, 102 PlantBottle, 617 Plastic Wood, 410 Plato’s Closet, 369 Playmonk, 515 PlayStation, 97, 98, 527 Plopp, 592 Find more at www.downloadslide.com 696 Indexes Pogs, 297 Pogue, David, 295n18, 308 Pokémon, 504 Polaroid, 236 Polarvision, 236 Policicchio, Jeff, 501 Pollack, Judann, 455n1 Polman, Paul, 602–603, 614, 622 Polo Ralph Lauren, 400 POM, 449 Pontiac, 70, 274 Poo, 592 POPClock Projection, 96n6 Porsche, 184–186, 232 Porsche, Ferdinand, 184 Porter, Michael, 33, 33n10, 71n9, 224n15, 557, 557n12 Portillo, Ely, 42n28, 271n38 Poynter Institute, 277 Prada, 407 Praeger Publishers, 197 Prahalad, C.K., 132n12, 347n12, 349 Prego, 259 Press’n Seal, 298 Price Club, 563 Price, Sol, 563 PriceGrabber.com, 345 Priceline.com, 345, 517, 528 PriceScan.com, 345 PricewaterhouseCoopers, 625 Pringles, 70 Prius, 255 PRIZM, 222 Proactiv Solutions, 523 Probst, Michele, 217 Procter & Gamble See P&G (Procter & Gamble) (PRODUCT) RED, 226 Progressive Insurance, 38, 264, 455, 463 Propel, 273 ProQuest, 130 Prozac, 592 PS25, 98 Pshitt, 592 PT Lion Mentari Airlines, 213 Publix, 390, 398, 399 Puente, Maria, 317n6 Pulizzi, Joe, 202 PUMA, 256, 620 Punnose, Fain Abraham, 75 Pure Digital Technologies, 208 Pure Michigan, 28 Purell, 461 Purina, 385 Pyrex, 255 Q Quaker Oats, 266 Queen, 219 Quero, 65 Qui, Joe, 599 Quill.com, 197 Qwikster, 361 R Racal Telecom, 143 Rackham, Neil, 486n2 Radio Shack, 179, 398 Raice, Shayndi, 229 Raisin Bran, 341 Rajeev, Aaron Ahuvia, 269n35 Ralph Lauren, 342, 400 Ramada Inn, 369 Ramada Limited, 237 Range Rover, 233 Rao, Ram, 343 Rate My Professor, 477 RateMDs.com, 477 Ravelry.com, 531 Ray, Rachael, 252 Razzq, Abdel, 75 RCA, 575 Rdio, 356 Reagan, Ronald, 106 Reagan, Steven J., 236n29 Real Simple, 468 Reckitt Benckiser, 595 RED Brick Road Agency, 427 Red Bull, 129–131, 130, 164, 450–452, 505, 555, 563–564 Red Bull Media House, 451–452 Red Bull Total Zero, 129 Red Cross, 251 Red Dress, 472 Red Kap, 565 Redbox, 360, 524 Redken, 378 RedLaser, 543 Reebok, 300, 449 Reece’s, 267, 268, 269 Reef, 218 Reeves, Rosser, 235 Regal, 599 Regal Cinemas, 48 REI, 157, 169, 229, 397, 398, 534 Reichert, Tom, 267n31 Reilly, Thomas P., 501n21 Rein, Shaun, 590 Reinartz, Werner, 44n34 Reingold, Jennifer, 132n12 Researcharts.com, 33n9 ResearchGATE, 532 Resnick, Brian, 202n10 Retton, Mary Lou, 99 Revlon, 64, 249, 524 Revson, Charles, 249 Rhapsody, 391 Richwine, Lisa, 69n6 Ricoh, 119 Riders, 218 Rigby, Darrell K., 295n19 Ringling Bros., 554 Rishe, Patrick, 345n10 Ritson, Mark, 376n14 Ritz-Carlton Hotels & Resorts, 36, 64, 235, 269, 549, 557–558 RitzCamera.com, 409 Ritzer, Kimberly, 321 Roberto, Ned, 48n41 Roberts, Dexter, 577n7 Robinson, Patrick J., 193n3, 197n7 Robinson, Peter, 186 Rock, Mick, 219 ROCKED, 219 Rockwell Automation, 501 Rockwood, Kate, 335n1 Rodkin, Gary, 325 Rodriguez, Cecilia, 317 Roegner, Eric V., 352n14 Rogers, Christina, 459n6 Rogers, David, 398n5 Rogers, Everett M., 178n28, 179n30 Find more at www.downloadslide.com Indexes Rolex, 236, 251, 254, 349, 462 Rolls-Royce, 254, 258 Ronald McDonald, 231 Ronson, Mark, 474 Rooney, Wayne, 441 Roosevelt, Franklin Delano, 106 Rose, Charlie, 361n1 Rose, Lacey, 440n13 Rosenbaum, Steven, 41n27 Rosenbloom, Stephanie, 357, 524n17 Rosinje Distributors, 573 Rossignol, 338 Roth, Eldon, 207 Rothwell, Steve Rothwell, 317 Row Adventures, 99 Rowe, Mike, 466 Rowling, J K., 583 Royal Caribbean, 101, 351 RPM International, 410 Rubin, Ben Fox, 327n13 Rueter, Thad, 526n22, 526n23 Ruffles, 342 Ruggless, Ron, 36n15 Runcible Spoon Bakery, 515 Russell, Thomas, 459n5 Russi, Venucia de, 278 Rust-Oleum, 410 Rust, Roland T., 43n32, 43n33, 82n19, 265n28 Rustler, 218 Ryals, Lynette, 82n19, 490n9 Ryan, Eric, 621 Ryanair, 315, 316–317 RydeGreen, 385 Ryder, 385 Ryder Supply Chain Solutions, 385 S Saab, 70, 274 Saatchi & Saatchi, 269 SABMiller, 563 Sacks, Danielle, 92n1, 543 Safeway, 81, 112, 364, 398, 490, 504, 621 Safien, Robert, 293n16 Sakkab, Nabil, 289 Saks Fifth Avenue, 218, 271, 304, 398, 405 Saks Off 5th, 401 Sales Cloud, 510 Salesforce.com, 141, 510–511 Salk Institute, 287 Salter, Chuck, 244, 317n18, 308, 641n24 Sam Ash, 371 Sam’s Club, 398, 401, 579 Sam’s Choice, 271 Samsung, 49, 97, 98, 103, 128, 232, 237, 268, 270, 282–283, 295, 361, 366, 443, 479, 529, 530, 574, 575, 583, 619 Samsung Galaxy, 270 Samsung Series Chronos, 282, 283 Samuel Adams Beer, 463 Samuel, Lawrence R., 173n24 Sanders, Gisele, 46 Sands Research, 140 SAP, 384, 494–495, 510 Sara Lee, 458 Sarkees, Matthew, 38n19 SAS, 141 Sass, Erik, 153 Sasser, W Earl, Jr., 261n23 Sattari, Setayesh, 64n3 Saturn, 70, 274 697 Saunders, Andrew, 603n1 Saunders, John, 604n2 Save-A-Lot, 419 Sawka, Kenneth, 224n15 SC Johnson, 380, 616 ScentAir, 406 Scheyder, Ernest, 551 Schick, 339 Schiff, Allison, 142n22 Schlesinger, Leonard A., 261n23 Schmidt, Jeff, 38n19 Schmitt, Garrick, 25n1 Schneider, Joan, 285n3 Scholastic Inc., 151 Schomer, Stephanie, 321n9 Schrambling, Regina, 254n8 Schreier, Martin, 293n16 Schreuer, Richard, 81n16 Schrute, Dwight, 484–485 Schultz, E J., 455n1 Schultz, Howard, 47, 292 Schulz, Greta, 257n16 Schumacher, Doug, 301 Schwab, 535 Schwartz, John, 297n21 Schweitzer, Tamara, 109n35 Scion, 255, 274 Scooby Doo, 272 Scotch Tape, 270 Seadream Yacht Club, 217 Sears, 103, 373, 397, 398, 402, 403, 404–405, 409, 487, 517, 530, 557, 561, 586 Sears Auto Centers, 404 Sears Grand, 404 Sears Hardware, 404 Sears Home Appliance Showrooms, 404 Sears Outlet, 404 Seattle’s Best Coffee, 222–223, 273, 351, 351, 524 Second Life, 164 Secret, 217 Sedaris, David, 102 Seetharaman, P B., 343 Sega, 583 Seimers, Eric, 327n14 Sengupta, Sanjit, 44n34 Sentinel, 218 Sephora, 522, 524 Sesame Street, 272 Seven & I, 414 Seventh Generation, 234 Sevkli, M., 395n1 Sewell, Dan, 28n5, 47, 530n32 Shactman, Brian, 387 Shah, Denish, 42n30, 43n32 Shahout, Abu, 75 Shaich, Ronald, 334, 335 ShamWow, 485, 524 Sharing Mayo Clinic, 260 Sharkey, Tina, 129n7, 147n30 Sharp, 119, 283 Sharp, Isadore, 546–547 Sharper Image, 408 Sharron, Steve, 600 Shaw Floors, 199–200 Shea, Christopher, 173n24 Sheetz, 398, 399 Sheetz Bros Coffeez, 399 Sheetz Bros Kitchen, 399 Shelman, Mary L., 303n27 Shenkar, Oded, 563n20 Find more at www.downloadslide.com 698 Indexes Sheraton Hotels, 406 Sherr, Ian, 361n1 Sherwin Williams, 110 Shoebox Greetings, 226 ShoeDazzle, 163–164 Shopkick, 227, 228, 229 Shopping.com, 542 Showrooming 2.0, 411–412 Shrek, 174, 472 Shriners Hospitals for Children, 202 Shum, Christine, 519 Siebel, 510 Sierra Mist, 273 Silk, 270, 462 Silly Bandz, 297 Simester, Duncan, 343 Simon Paul, 550 Simple Elegance, 271 Simply Venus, 221 Singapore Airlines, 213, 234 Sipkoff, Martin, 613n17 SiriusXM Radio, 391, 479 Sit or Squat, 534 Site.com, 510 Siver, Levi, 451 Six Flags, 193–194, 339 Skechers, 449, 607 Skittles, 164, 166 Skrodzki, Anne, 335 Skype, 268, 269, 283, 355, 542 Slack, Eric, 556n10 SlapChop, 524 Slater, Dan, 43n33 Slater, Stanley F., 44n34 Slice, 273 Slicksmile, Harry E., 196–197 Slimfast, 109 Sloan, Paul, 139 Sloane, Garett, 553n5 Sloane, Paul, 285n4 Slutsky, Irena, 129n7 Smart car, 330 Smarthinking, 277 Smartwater, 270 Smashburger, 331 Smith, Ethan, 92n1 Smith, Joyce, 321n9 Smith, N Craig, 29n7 Smith, Ray, 343n8 Smith, Sandy, 406n14 Snap Fitness, 315, 315 Snap Surveys, 135, 136 Snapper, 381 Snickers, 177, 438 Snow Report, 534 Snuggie, 524, 562 SoBe, 273 Social Marketing Institute (SMI), 253 SocialBlue, 202 Solis, Brian, 263 Solomon, Michael R., 172n22 Song, Jaeyong, 619n25 Sony, 97–98, 103, 124, 223, 282, 283, 527, 550, 561 Soul, 216 Southon, Mike, 345n10 Southwest Airlines, 32, 40, 115, 164, 227, 264–265, 316, 317, 371, 518, 557 Sowa, Anna, 324 Spacey, Kevin, 361 Sparks, Janet, 366n2 Special K, 273, 299 Speer, Jordan, 226n18 Spel, Svenska, 440 SpongeBob SquarePants, 171, 272 Sports Authority, 36 Spotify, 356, 392, 515 Sprint, 38–39, 54, 325 Sprott, David E., 343n8 Sprouts, 398 SQUARED & Design, 177 St Joseph aspirin, 472 St Jude Children’s Hospital, 48, 261 St Regis Hotel, 243 Standard Oil of New Jersey, 269 Stanford, Duane, 573n1, 584n26 Stanley Black & Decker, 81 Stanley, T L., 123n1, 440n14 Staples, 199, 234, 373, 381, 398, 410, 413, 525, 621 Staples Advantage, 199 Star, 469 Star Wars, 166, 272, 480, 531 Starbucks, 39, 40, 69–70, 144, 222–223, 228, 229, 233, 236, 249, 266, 273, 292, 351, 408, 461, 535, 541, 575, 582, 589–590, 620, 622 Starbucks VIA, 292 StarTrek, 532 Starvish, Maggie, 303n27 Starwood Hotels and Resorts, 219 State Farm, 160, 455 Steel, Emily, 110n36 Steelcase, 223 Stein, Joel, 217n5 Steinberg, Brian, 460n9, 461n12, 466n17 Steins, Tess, 69n8 Steinway, 314, 317 Sterling, Greg, 525n19 Stern, Gary, 400n9 Stern, Stefan, 557n12 Sternberg, Jared, 460n11 Steveman, Ben, 98n7 Stewart, Christopher S., 443n17 Stewart, John, 266 STIHL, 373, 374, 502 Stilwell, Victoria, 244 Stipp, Horst, 468n20 Stolarski, Christopher, 574n2 Stone, Brad, 43n31, 45n37, 357 Stoney Ginger Beer, 573 Stonyfield Farm, 385, 621 Stop-N-Go, 398 Story of Stuff, 610 Stoudemire, Amar’e, 220 StraighterLine, 277 Strauss, Gary, 480 Stringer, Howard, 97, 98 Stroller, Gary, 197 Strom, Stephanie, 230n22 StubHub, 542 Sub-Zero, 551, 552 Subaru, 103, 161–162, 307 Subaru WRX, 162 Subway, 94, 234, 351, 402, 463, 561 SubZero, 236 Sudhir, K., 38n19 Sullivan, Anthony, 524 Sullivan, Elizabeth A., 38n17, 38n18, 40n23, 83n20, 137n18, 139, 166, 202, 486n2, 495n17, 532n40 Sullivan, Laurie, 160n4 Summers, Jeffrey, 301 Sun Chip, 627 Find more at www.downloadslide.com Indexes Sun Microsystems, 209 Sundheim, Ken, 492n13 Sunkist, 255 Sunsilk Lively Clean & Fresh, 592 Super Bowl, 40, 128, 166, 220, 443, 460, 461, 478–480, 530 SuperTarget, 398 SuperValu, 398, 419, 610 Supra, 185 Sure, 301 Surf, 562 SurveyMonkey, 136 Susan G Komen Race for the Cure, 226 Sustainable Living Plan, 602–603 Sutton, Jane, 406n14 Swanson, 259 Swarovski, 472 Swartz, Jon, 468n20 Swiffer, 167, 269, 298 Swiffer Dusters, 288 Swift, Taylor, 356 Swivel Sweeper, 485, 524 Symmetry Live, 219 Symphony- IRI, 292 SymphonyIRI Group, 131 Sztorc, Dan, 511 T T-Mobile, 325, 461 TABASCO, 296 Taco Bell, 62, 113, 303, 315 Tailey, Karen, 405 Tarasi, Crina O., 43n32, 44n34 Target, 27, 45, 48, 81, 85–86, 94, 104, 165, 168, 169, 199, 221, 229, 252, 271, 300, 342, 345, 364, 376, 396, 397, 398, 399, 400, 402, 404, 405, 408–409, 410, 414, 438, 461, 535, 549, 553, 562, 568, 612, 621 Tata Global Beverages, 589 Tata Motors, 103 Tatoglu, E., 395n1 Taylor, Alex, III, 103n29, 104n31 Taylor, Charles R., 593n40 Taylor, Victoria, 164n12 Tazo, 222–223, 273 Team Umizoomi, 272 Tedesco, T J., 498n19 Teixeira, Thales, 531n34 TelePresence, 495 Templin, Mark, 134–135 Tenet Healthcare, 202 Terry, John, 440, 441 Tesco, 414, 426–427 Tesla, 289 Testors, 410 Tetra Food, 557 Texas Instruments (TI), 318–319, 557 The Advocate, 102 The Athlete’s Foot, 369 The Body Shop, 524 The Fearless Flyer, 324 The Kids Are All Right, 102 The Office, 485, 583 The Playground, 624 The Tonight Show, 524 Thomas Pink, 406 Thomas, Chad, 459n6 Thompson, David, 496n18 Thornton, Emily, 45n36 Thornton, Matthew, 115 Thorogood, Pelin Wood, 493n16 Thorpe, Daniel, 43n32 699 Thrifty, 565 Ticketmaster.com, 345 Tide, 109, 221, 225, 269, 288, 296, 430, 436–437, 439, 534, 562 Tide Total Care, 288 Tierney, Christy, 302n26 Tiffany, 397 Tim Hortons, 272 Timberlake, Cotten, 216n3 Timberland, 49, 105, 164, 218, 553, 621 Time, 469 Time Warner, 140, 140, 467 Timex, 462 Title Nine, 406 Titus Cycles, 322, 324 TJ Maxx, 398, 400, 406 TJX Companies, 400 Toane, Carey, 125n3 TodoDia, 579 Tolve, Andrew, 491n12 Tom’s of Maine, 112, 112 Toman, Nicholas, 36n14 Tommy Hilfiger, 271 TOMS Shoes, 96, 109, 621 Tony the Tiger, 167 TopCoder, 287 Toro, 381 Torrid, 183 Toscani, Olivero, 279 Toshiba, 283, 386–387 Total, 190 Touchstone Pictures, 65 Tower Records, 549 Townsend, Matt, 45n35 Toy Story, 231 Toyota, 27, 37–38, 49, 109, 160, 185, 216, 233, 236, 255, 273, 274, 302, 330, 375, 376, 377–378, 461, 524, 563, 569, 575, 583, 587 Toys “R” Us, 389, 409 Tozzi, John, 145n25 Trachtenberg, Jeffrey A., 357 Trader Joe’s, 165, 269, 271, 322, 323–324, 398, 403 Traditional Home, 153 Trap-Ease America, 86–87 Travelers, 264 Travelocity.com, 410, 529 Treachy, Michael, 557, 557n13 Trefis, 271n37 Trinitron, 97, 98 TripAdvisor, 175 Tripodi, Joe, 466n19, 474 Trix, 190 Tropicana, 54, 273 Tropicana Pure Premium, 112 Trosclair, Carroll, 533n42 Trout, Jack, 266n30 True Blood, 533 True Value, 402 TRUSTe, 538 Tsai, Jessica, 140n20 Tse, Cyrus, 519 Tsirulnik, Giselle, 533n46 Tsneg, Nin-Hai, 47 Tull, Donald S., 133 Tundra, 255 Turner, Bernadette, 99n10 Tutu, Andre, 186 Twitter, 39–40, 100, 110, 115, 122, 123, 125, 127, 137, 138, 147, 164, 165, 166, 200, 201, 202, 217, 228, 265, 285–286, 293, 300, 306, 411, 464, 466, 473, 475, 477, 479, 494, 516, 525, 527, 531, 534, 535, 562 Tyagi, Pradeep K., 132n13 Find more at www.downloadslide.com 700 Indexes Tylenol, 472, 555 Tyler, Steven, 440 U U-Haul, 565 U.S Air Force, 241 U.S Census Bureau, 96n5, 96n6, 101n15, 101n16, 101n18, 101n19, 102n22, 102n23, 102n24, 104n30, 145, 158n2, 160n3, 161n6, 161n8, 396n2, 410n22, 525n19 U.S Centers for Disease Control and Prevention, 307 U.S Commerce Department, 204 U.S Department of Agriculture, 29 U.S Department of Health & Human Services, 29 U.S Military, 48 U.S Navy, 524 U.S Patent Office and Trademark, 128 U.S Postal Service, 48, 238, 264, 325, 484, 522, 549 U.S Security and Exchange Commission, 128 U.S Small Business Administration, 145, 203 Umpqua Bank, 568 UNICEF, 226 Unilever, 33, 40, 125, 171, 217, 303, 347, 348, 352, 364, 445, 464, 562, 592, 602–603, 614, 621 United Airlines, 114, 115 United Parcel Service, 33–34, 235, 238 United Technologies, 209, 575 United Way, 437 UnitedPackageSmashers.com, 114 Universal Studios, 510, 515, 575 University of Phoenix, 241 UPS, 386–387, 438 UPS Business Solutions, 385 US MONITOR, 130 USA Today, 40–41, 113, 437, 517n3 USAA, 126–127, 209 V VA Advantage!, 205 Valentin, E K., 343n8 Valentino-DeVries, Jennifer, 523n11 van Auken, Brad, 225n16 Van Camps Pork & Beans, 342 Van de Kamps, 221 Vandebroek, Sophie, 119 Vans, 82, 218, 565 Varey, Richard J., 610n12 Vascellaro, Jessica E., 92n1 Vaseline, 109 Vazquez, Paul, 357 Vega, Tanzina, 100n14, 139 Velotta, Richard N., 253n4 Venus, 220, 221 Venus Breeze, 220 Venus Divine, 220 Venus Embrace, 220 Venza, 216 Vergara, Sofia, 440 Verizon Wireless, 103, 160, 325, 361, 457, 552, 560 Versa, 232 Versace, 241, 400 Veterans Affairs Medical Centers, 202 Veterinary Pet Insurance (VPI), 170 VF Corporation, 82, 218, 218, 565, 621 Viacom, 102 Vibram FiveFinger, 31, 31 Victoria’s Secret, 231, 531, 582 Victorinox, 273 Vidali, Ari, 204n14 Vidalia Onion Committee (VOC), 174, 472 Viking, 254, 551 Virgin Atlantic Airways, 555, 556 Virgin Games, 556 Virgin Group, 556 Virgin Mobile, 556 Virgin Wines, 556 Visa, 470, 471 Vistakon, 553 Vocalpoint, 439 Vodafone, 143–144, 483 Voeth, Markus, 194n5 Vogel, Joseph, 352n15 Vogel, Paul, 522n8 Vogue, 468 Volkswagen, 166, 184, 461, 479, 480, 530 Volt, 289 Volvo, 259, 569 Vranica, Suzanne, 112n41 W W Hotels, 218, 219–220 W L Gore & Associates, 191 Waananen, Lisa, 430n3 Wade, Dwyane, 220 Wahba, Phil, 405 Walgreens, 109, 227, 364, 445, 503, 504, 524, 535, 610 Walker, Molly Bernhart, 536n48 Walker, Rob, 609n10 Walkman, 124, 561 Wall Street Journal, 113, 222, 469 Wallace, Alicia, 324 Walmart, 24, 25, 27, 30, 33, 64, 71, 81, 85–86, 94, 102, 106, 125, 160, 165, 179, 183, 192, 199, 226, 235, 255, 267, 271, 304, 312, 315, 317, 342, 357–358, 369, 373, 376, 380, 382, 383, 385, 395, 397, 398, 399, 400, 401, 403, 404, 405, 407, 408, 409, 410, 414, 419, 445, 490, 524, 549, 553, 557, 558, 560, 561, 562, 563, 565, 568, 576, 579, 583, 584, 608, 610, 612, 617–618, 620, 622 Walmart Supercenter, 398, 582 Walmart.com, 530 Walmartblows.com, 114 Walmsley, Andrew, 39n20 Walt Disney Company, 68–69 See also Disney Walt Disney Pictures, 65 Walt Disney World Resort, 29, 234 Walters, Helen, 254n8 Walton, Sam, 563 Wanamaker, John, 440 Ward, Sandra, 232n26 Warman, Matt, 308 Warner Bros., 515 Warner, Fara, 600 Washington Post, 169 Wasserman, Todd, 148n33, 229, 301 Watco, 410 Waters, Richard, 120 Watson, Thomas J Sr., 482 Waugh, Rob, 92n1 Wauters, Robin, 410n22 Waze, 330 WD-40, 269, 561 Weather.com, 530 Weber, 35 Weber Nation, 36 Weber, Joseph, 326n11 WebEx, 101, 495 WebEx Mail, 209 Webster, Frederick E., Jr., 194n5 Wegmans, 324 Wei, Michael, 577n7, 582n21, 582n23 Find more at www.downloadslide.com Indexes Weight Watchers, 437, 561 Weiner, Russell, 123 Weiner, Stacy, 231n23 Weise, Karen, 403n12 Weiss, Bari, 229 Welch, David, 25n1, 357 Welch, Jack, 64n3 Welch, Jonathan, 480 Welch, Suzy, 64n3 Wells Fargo, 296 Wendy’s, 62, 94, 562 Werdelin, Henrik, 560 West China Hospital, 209 West, Evan, 381n20 Westbury, Jodi, 292n12 Westergren, Tim, 391 Western Auto, 401, 402 Western Union, 549 Westin Hotel & Resorts, 406 Westin Stamford Hotel, 236 Wheaties, 190 Whirlpool, 373, 487, 551, 552 White Castle, 563 White Cloud, 271 White, Shaun, 451 Whole Foods Market, 112, 131, 165, 226, 261, 271, 323, 327, 327, 398, 408, 621 Wiedeking, Wendelin, 185 Wiersema, Fred, 557, 557n13 Wii, 98 Wikipedia, 266 Wiley, Kim Wright, 495n17, 496n18 Williams-Sonoma, 48, 221, 341, 397, 398, 410, 520, 558 Williams, Ashley, 94n3 Williams, Jeff, 265n27 Williams, Serena, 252 Williams, Steven, 164n12, 166 Wilson, Suzanne, 98n7 Wilson, Thomas, 455 Wilson, Woodrow, 106 Wind, Yoram, 193n3, 194n5, 197n7 Wingfield, Nick, 285n2, 583n25 Winslow, George, 180n31 Winsor, Harry, 114, 115 Winsor, John, 114 Winter, Drew, 616n20 Winters, Dean, 454–455 Wisk, 562 Witeck-Combs Communications, 103n28 Wohl, Jessica, 369n6 Wolf, John, 265 Wolfgang Puck, 259 Wong, Elaine, 299n24 Wong, Susan, 270n36 Wong, Veronica, 604n2 Wonka.com, 529 Woo, Stu, 361n1 Wood, Z, 427n1 Woodland Park Zoo, 339 Woodman, Nick, 157 Wooga, 515 Woolite, 595 World Bank, 624 World POPClock, 96n5, 158n2 World Trade Organization, 577 World Wildlife Fund (WWF), 474 Worthen, Ben, 473n26 WPP, 470 Wrangler, 82, 218, 269, 473, 475 Wright, Chrissi, 324 701 Wu, Jason, 409 Wyatt, Edward, 139 Wyner, Gordon, 397n4 X Xbox, 390 Xerox, 118–120, 270, 488, 489 Xfinity Streampix, 361, 390 Xhilaration, 271 Xie, Jinhong, 177n26 Y Yahoo!, 128, 167, 270, 307, 369–370, 525, 530, 538 Yahoo!Finance, 530 Yahoo!Shopping, 345 Yamaha, 317 Yan, Wei Xiao, 132 Yaris, 255 Yasu, Mariko, 98 Yee, Rachael W Y., 261n23 Yelp, 477, 504, 535 Yi, Pu, 598 Yoo, Tae, 209 Yoplait, 190 York, Emily Bryson, 166n13, 293n14, 428n1, 581n19 YouKu, 90 Young & Rubicam’s Brand Asset Valuator, 266, 268 YouTube, 31, 39, 41, 90–92, 100, 114, 115, 147, 156, 157, 161, 162, 164, 165, 166, 200, 201, 202, 221, 247, 260, 266, 268, 269, 361, 436, 437, 443, 461, 464, 466, 468, 473, 475, 494, 495, 516, 517, 519, 524, 525, 526, 530, 531, 533, 615, 627 YUM! Brands, 303 Z Zagat, 403 Zahran, Ahmed, 189 Zale, Joseph, 313n2, 326n12, 336n2, 352n14 Zami, Sigal, 511 Zappos.com, 36, 138, 261, 262–263, 269, 357, 386, 410, 463, 517, 523, 528 Zara, 368, 574 Zawada, Craig C., 352n14 Zeithaml, Valerie A., 43n32, 43n33, 82n19 Zenhabits, 164 Zhang, Qin, 343 Zhou, Josephine Yu, 557n13 Zigmond, Dan, 468n20 Zimmerman, Ann, 145n25, 397n4, 410n23 Zipcar, 534, 535, 564–565 Ziploc, 270 Zmuda, Natalie, 45n35, 48n40, 80n15, 127n6, 256n14, 263, 475, 480 ZoomShops, 524 ZoomSystems, 524 Zuckerberg, Mark, 307, 514–515 Zynga, 515 Subject Index Page numbers in italic indicate an illustration or photo appears on that page A Acquisitions, 612–613 Action, message design, 437–438 Adapted global marketing, 588 Administered vertical marketing system (VMS), 369 Adoption process, new products, 178–180, 179 Advertainment, 461–462, 523–524 Advertising See also Public relations; Sales promotion advertising agencies, 470 budget decisions, 459 Find more at www.downloadslide.com 702 Indexes consumer-generated messages, 463–465 costs of, 606–607 infomercials, 523–524 insurance company example, 454–455 international decisions, 470–471 marketing communications trends, 429–431 media selection, 465–469, 466, 467, 468 message creation, 460–465, 461, 463 objectives, 457–458 online advertising, 529–530 overview of, 456–457 promotion mix, 428–429, 443–445 Real Marketing, Coca-Cola, 474–475 return on investment, 469 socially responsible communication, 446–447 strategy development, overview, 459–460 Advertising specialties, 504 Advertorials, 113 Affordable method, promotion budget, 442–443 African American consumers, 161 Age, market segmentation, 168, 215, 216–217 Agencies, advertising, 470 Agents, 415 See also Wholesalers AIDA model, message design, 437–438 Air carriers, 382–383 Airtruck, 383 Allowances, pricing strategies, 340 Alternative evaluation, 177 Alternative media, 467–468 Americans with Disabilities Act (1991), 108 Approach, sales process, 497, 498 Aroma, store atmosphere, 406 Asian American consumers, 161–162 Atmosphere, as communication channel, 439 Atmosphere, retail stores, 405–406 Attack advertising, 457–458 See also Advertising Attention, message design, 437–438 Attitudes, consumer behavior and, 173–174 Audience, communication process, 436–437 Augmented products, 250 Authenticity, branding, 268–269 Awareness stage, buyer-readiness, 436–437 B Baby boomers, 96, 98–99 Bait-and-switch, 447 Barter, 581 Basing-point pricing, 344–345 Behavioral market segmentation, 215, 220–221 Behavioral targeting, 138–139 Beliefs, consumer behavior and, 110–113, 111, 112, 173–174 Benchmark, competitor analysis, 552 Benefit segmentation, 220–221 Biometric data, research, 140 Bisexual consumers, 102–103 Blogs, 527–528 See also Social media Blue-ocean strategy, 554–555 Boston Consulting Group (BCG) approach, planning, 67–68 Brand See also Advertising branded entertainment, 461–462 brand equity, 266–267 brand evangelists, 165–166, 438–439, 527–528 brand experiences, 29 brand extension, 273 brand integration, 461–462 brand personality, 169, 171 brand valuation, 267 co-branding, 272 decisions about, 255 development strategies, 272–274, 273 habitual buying behavior, 175 labeling, 256–257 licensing, 271–272 managing, 274–275 name selection, 269–270 Nike example, 246–247 overview, 266 packaging, 255–256 positioning, 267–269 public relations, 473–475 Real Marketing, breakaway brands, 268–269 Real Marketing, celebrity endorsements, 441–442 sales promotions, 502–503 service differentiation, 264 store brands, 270–271 value proposition, 31 Brazil, emerging markets, 579–580 Break-even pricing, 319–321, 320 Brick-and-mortar retailers, 525 Broker, 415 See also Wholesalers B-to-B marketers See Business buyer behavior; Business markets Budget marketing plan, 79 promotion strategy, 440, 442–443 Bureau of Economic Analysis, 145 Business analysis, 291 Business buyer behavior See also Business markets buying process, 190, 197–199, 198 buying situations, 193–194 criticism, marketing impact on, 612–613 defined, 190 e-procurement, 199–200 influences on, 194–195, 197 institutional and government markets, 200, 202–205, 203, 204 KarmSolar example, 188–189 model of, 192 participants, 194 Real Marketing, international etiquette, 196–197 Real Marketing, social marketing, 200–202 Business markets buying unit, nature of, 191–192 defined, 96, 190 industrial products, 251–252 KarmSolar example, 188–189 market segmentation, 222–223 market structure and demand, 191 Business portfolio, designing, 65–67 Business promotions, 502–503, 505–506 Business-to-business marketing See also Business buyer behavior; Business markets current trends, 48 online, 526 salespeople, need for, 494–496 telemarketing, 523 Business-to-consumer online marketing, 526 Buyer-readiness stages, 436–437 Buyers, business buying decisions, 194 Buying centers, 194 Buying decisions, types of, 174–176, 175 See also Business buyer behavior; Consumer behavior Buzz marketing, 163–164, 438–439 By-product pricing, 339 C CAFTA-DR (Central American Free Trade Agreement), 578 CAN-SPAM Act (2003), 108, 537–538 Capital items, 252 Captive product pricing, 338–339 Career opportunities, 80–81 Caring capitalism Find more at www.downloadslide.com Indexes current trends, 49 Cash-and-carry wholesalers, 416 Cash cows, 67–68 Cash discounts, 340 Catalogs, 522–523 Category killers, 399 Causal research, 129 Cause-and-effect relationships, 133 Cause-related marketing, 109–110 Celebrity endorsements, 441–442 Central American Free Trade Agreement (CAFTA-DR), 578 Central business districts, 407 Cents-off deals, 504 Channel conflict, 366–367 Check-in services, 228–229 Chief financial officer (CFO), 80–81 Chief listening officers, 128 Chief marketing officer (CMO), 80–81 Chief operating officer (COO), 80–81 Child Protection Act (1966), 108 Children’s Online Privacy Protection Act (2000), 108, 538 Children’s Television Act (1990), 108 Citizen-action publics, 95 Clayton Act (1914), 108, 351, 378 Click-and-mortar companies, 525 Click only companies, 525 Closing, sales process, 499 Club marketing programs, 36 Cluster (area) sample, 137, 139 Co-branding, 272 Cognitive dissonance, 178 Cold calling, 497–499 Commercialization, 293 Commercial online databases, 130–131 Commission merchants, 417 Communication effects, measuring, 469 Communication strategy See also Advertising audience and objectives, 436–437 communication process, 434–435 communications model, 429–431 feedback, collecting, 440 integrated communications, overview, 431–434 media selection, 438–439 message design, 437–438 message source, 439–440 promotion budget decisions, 440, 442–443 promotion mix, overview, 428–429, 443–445 Real Marketing, celebrity endorsement, 441–442 socially responsible communication, 446–447 Community shopping center, 407 Company, microenvironment, 93 Company buying sites, 199–200 Comparative advertising, 457–458 See also Advertising Compensation, salespeople, 492 Competition-based pricing, 321, 324–327, 325, 326, 349–351, 350 Competitive advantage See also Competitors basic strategies for, 557–558 competitive intelligence systems, 555 competitive marketing strategies, defined, 548 competitor analysis, 548–553, 549, 551, 552 competitors, selecting targets, 553–555, 554 customer vs competitor orientation, 565–566 Four Seasons example, 546–547 market challenger strategies, 563–564 market follower strategies, 564 marketing strategies, overview, 555–557, 556 market leader strategies, 560–563, 561 market nicher strategies, 564–565 positioning, 233–234, 558–560 Real Marketing, Apple, 559–560 Real Marketing, Kodak, 550–551 Competitive marketing intelligence, 127–128 Competitive-parity method, promotion budget, 443 Competitor-centered company, 565–566 Competitors See also Competitive advantage horizontal marketing systems, 369–370 identifying, 547–551 marketing channel distribution, 378–379 marketing channel objectives, 372–373 marketing impact on, 612–613 microenvironment, 94–95 new product ideas, 286 Complex buying behavior, 174–175 Component parts, 252 Compounded annual growth rate (CAGR), 311 Concentrated marketing, 226–227 Concept development and testing, new products, 289–290 Conformance quality, 254 Consumer behavior buyer behavior, defined, 158 buyer decision process, 176–178, 177 buying decisions, types of, 174–176, 175 consumer impression and expression, 466 cultural factors, 159–162, 160, 161 family, influence of, 166–167 GoPro example, 156–157 groups and social networks, 162–166, 164 models of, 158–159 new product decisions, 178–180, 179 personal factors, 167–171, 168 psychological factors, 171–174, 172, 173 Real Marketing, online social influence, 165–166 Real Marketing, pet owner lifestyle, 170–171 roles and status, 167 Consumer-generated marketing See also Social media advertising messages, 463–465 defined, 40–41 Consumerism, 613–614 Consumer markets defined, 96, 158 GoPro example, 156–157 Consumer-oriented marketing, 618 Consumer products, 250–251 Consumer Product Safety Act (1972), 108 Consumer promotions, 502–505, 504 Consumer spending habits, 103–104 Consumer-to-business online marketing, 528 Consumer-to-consumer online marketing, 526–528 Contact methods, research, 133–137, 135, 136 Content sites, Internet, 525 Content sponsorship, online, 530 Contests, sales promotions, 503–505, 504 Contextual advertising, 530 Continuity, advertising, 469 Continuous inventory replenishment systems, 383 Contract manufacturing, 586 Contractual vertical marketing system (VMS), 368–369 Controls, marketing plan, 79 Convenience products, 250–251 Convenience sample, 137, 139 Convenience stores, 398, 399 Conventional distribution channel, 367 Conventional energy sources, 188 Conventions, 505–506 Conviction, buyer-readiness, 436–437 Core beliefs, 110–113, 111, 112 Corporate chain retailers, 401, 402 Corporate identity materials, 474–475 Corporate image marketing, 252–253 Corporate vertical marketing system, 368 703 Find more at www.downloadslide.com 704 Indexes Corporate web sites, 528–535, 529, 530, 531, 532, 533, 534 Cost-based pricing, 317–321, 318, 319, 320 Cost leadership, 557 Cost-plus pricing, 319 Coupons, 503–505, 504 Cradle-to-cradle practices, 616–618 Creative concept, 462 Criticism of marketing impact on businesses, 612–613 impact on individuals, 606–610, 607, 609 impact on society, 610–612, 611 CRM See Customer relationship management (CRM) Cross-cultural marketing, 162 See also Culture Cross-market segmentation, 223–224 Crowdsourcing, 287, 288–289 Cues, pricing and, 342–343 Cultural environment, overview, 110–113, 111, 112 Cultural shift, defined, 160 Culture See also International markets advertising decisions, 470–471 consumer behavior, influence on, 159–162, 160, 161 cultural pollution, 611–612 distribution channels, 374–375 global marketing strategy and, 581–583, 582 international market segmentation, 223–224 macroenvironment, 102–103 market research and, 146–147 Customer-centered company, 565–566 Customer-centered logistics, 379–380 Customer-centered new-product development, 293–294 Customer databases, 518, 520–521 Customer-driven strategies See also Brand; Products; Services AirAsia example, 212–213 analyzing customer needs, 372 behavioral segmentation, 220–221 branding, 255 business markets, 222–223 choosing a strategy, 230–231 concentrated marketing, 226–227 demographic segmentation, 215, 216–218, 217 differentiated marketing, 225–226 differentiation and positioning, 232–238, 233, 234, 235, 236, 237 effective segmentation, 224 geographic segmentation, 215–216 IBM example, 482–483 international markets, 223–224 marketing concept, 32–33 market segmentation, overview, 215 market targeting strategies, overview, 224–225 micromarketing, 227–230, 229 multiple segmentation bases, 222 overview, 30–34, 31, 32, 33, 214–215 Real Marketing, lifestyle marketing, 219–220 Real Marketing, micromarketing, 228–229 socially responsible marketing, 231–232 undifferentiated marketing, 225 Customer equity, building, 43–44 Customer experiences, creating, 249 Customer insights See also Customer relationship management (CRM); Social media Domino’s Pizza example, 122–123 importance of, 124–125 new product ideas, 286–287 Customer intimacy, competitive strategy, 557–558 Customer lifetime value, 42 Customer loyalty programs, 503 Customer relationship management (CRM) Amazon example, 24–25 capturing value from, 41–44, 42, 43 communication process, 434–435 customer databases, 518, 520–521 data analysis, 141–142, 144 direct marketing, 518 dynamic pricing strategies, 345 integrated logistics management, 383–387, 384 internal databases, 126–127 marketing intermediaries, 94 Nike example, 246–247 overview, 34–36, 35 partner relationship management, 41 personal selling, 499–501 postpurchase behavior, 178 price changes, 349–350 Real Marketing, breakaway brands, 268–269 Real Marketing, P&G, 500–501 Real Marketing, Vodafone, 143–144 Real Marketing, Zappos, 262–263 sales force, role of, 485–486 sales process, 497–499 as strategy, 81 trends in, 38–41, 40 Customers marketing environment, 95–96 marketing process, summary of, 50–51 needs and wants, 28–30 Customer sales force structure, 486–490, 487, 488, 489 See also Sales promotion Customer-segment pricing, 340–341 Customer-solution approach, sales, 497, 498 Customer value See also Marketing channels Abou Shakra restaurant, 55–56 Air Arabia, 310–311 Amazon example, 24–25 communication audience and objectives, 436–437 communication process, 434–435 customer value analysis, 553 feedback, collecting, 440 integrated communications campaign, 426–427 integrated communications campaign, overview, 431–434 integrated logistics management, 383–387, 384 logistics, 380–381 marketing channels, importance of, 363–366, 364, 365 marketing communications model, 429–431 media selection, 438–439 message design, 437–438 message sources, 439–440 Panera Bread Company example, 334–335 promotion budget decisions, 440, 442–443 promotion mix, overview, 428–429, 443–445 Real Marketing, celebrity endorsement, 441–442 Real Marketing, marketing channel management, 377–378 socially responsible communication, 446–447 value delivery network, 362–363 Customer-value marketing, defined, 618–619 D Data mining, 141–142 Data warehouse, 141–142 Dealer networks, Real Marketing, 377–378 Deal-of-the-day marketing, 228–229 Deceptive practices, 607–608 Deceptive pricing, 353 Deciders, business buying, 194 Decline stage, product life cycle, 296, 299–301, 302 Decoding, communication process, 434–435 Deficient products, 622 Demand, pricing and, 324–327, 325, 326 Demand chain, 363 Demand curve, 325–326 Demands, customer, 28–30 ... November 20 12 See Christine Birkner, Marketing in 20 12: The End of the Middle?” Marketing News, January 31, 20 12, pp 22 23 See Philip Kotler and Kevin Lane Keller, Marketing Management, 14th ed (Upper... com/business/corporate/air-arabia-profit-jump- 126 -20 12- 11- 12- 1 4 827 98, accessed November 17, 20 12; “Air Arabia Reports Another Six Months of Profit and Consistent Growth,” CAPA—Centre for Aviation, 20 12, http://centreforaviation.com/analysis/air-arabiareports-another-six-months -of- profit-and-consistent-growth-80768,... www.oxbridgewriters.com/essays /marketing/ the-air-arabia.php, accessed November 17, 20 12; “News Details: Air Arabia, 20 12, www.airarabia.com/news-details?nid=149&ppage=, accessed November 17, 20 12; “Air Arabia,” 20 12, http://up.m-ec.biz/up/Mohcine/Report/AirArabia-Update-0 520 09.pdf,