Chapter 11 Part 1

Question 1

initiator

Answer 1

identifies the need

Question 2

gatekeeper

Answer 2

starts the process of shopping around, choosing a small selection for review

Question 3

influences

Answer 3

outside opinions

Question 4

cognitive paradigm theory of consumer behaviour

Answer 4

a purchase is an outcome of problem solving - the consumer receives and considers large quantities of into before choosing between the products

Question 5

the learned behaviour theory of consumer behaviour

Answer 5

consumers learn from past satisfying or unsatisfying purchases and therefore make shortcuts with future routine/habitual purchases

Question 6

the habitual decision making theory of consumer behaviour

Answer 6

consumers make decisions based on loyalty, inertia or satisfying behaviour (the first one is good enough)

Question 7

social interaction theory

Answer 7

an individuals behaviour may depends on what they perceive others in society will be doing. the social influence of others therefore impacts on a persons buying habits

Question 8

zero level distribution channel

Answer 8

the manufacturer deals directly with the customer

Question 9

one level distribution channel

Answer 9

one intermediary where the channel consists of manufacturer, retailer and consumer

Question 10

two level distribution channel

Answer 10

has several intermediaries

Question 11

loss leaders

Answer 11

set some product items low to attract customers to a wider range of products

Question 12

penetration pricing

Answer 12

set price low enough to stimulate rapid growth in market share (bring back loyal customers)

Question 13

price-skimming

Answer 13

high price for a new product to benefit from early adopters of the product

Question 14

psychological pricing

Answer 14

£2.99 vs £3.00

Question 15

selective pricing

Answer 15

set prices to reflect demand (off-peak trains) - variable pricing

Question 16

price discrimination

Answer 16

transfer between segments is impossible, allowing firms to charge different prices for the same products in different segments (e.g. peak/off-peak)

Question 17

predatory pricing

Answer 17

done to deliberately drive out competition

Question 18

push marketing

Answer 18

promote products by pushing them on to people (short term sales)

Question 19

pull marketing

Answer 19

establish a loyal following and draw consumers to the products - creates brand loyalty and keeps the customer coming back

Question 20

undifferentiated marketing

Answer 20

delivery of product to the market place with little concern for segment analysis. mix is undifferentiated with the hope that as many people as possible buy the product

Question 21

differentiated marketing

Answer 21

several products aimed at a separate market as to appeal more to each target group. a different price can be charged for each but this is time consuming and costly

Question 22

concentrated marketing

Answer 22

focus on a single segment hoping to meet its exact needs better than any other organisation