Chapter 11 Part 1 Flashcards
initiator
identifies the need
gatekeeper
starts the process of shopping around, choosing a small selection for review
influences
outside opinions
cognitive paradigm theory of consumer behaviour
a purchase is an outcome of problem solving - the consumer receives and considers large quantities of into before choosing between the products
the learned behaviour theory of consumer behaviour
consumers learn from past satisfying or unsatisfying purchases and therefore make shortcuts with future routine/habitual purchases
the habitual decision making theory of consumer behaviour
consumers make decisions based on loyalty, inertia or satisfying behaviour (the first one is good enough)
social interaction theory
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
zero level distribution channel
the manufacturer deals directly with the customer
one level distribution channel
one intermediary where the channel consists of manufacturer, retailer and consumer
two level distribution channel
has several intermediaries
loss leaders
set some product items low to attract customers to a wider range of products
penetration pricing
set price low enough to stimulate rapid growth in market share (bring back loyal customers)
price-skimming
high price for a new product to benefit from early adopters of the product
psychological pricing
£2.99 vs £3.00
selective pricing
set prices to reflect demand (off-peak trains) - variable pricing
price discrimination
transfer between segments is impossible, allowing firms to charge different prices for the same products in different segments (e.g. peak/off-peak)
predatory pricing
done to deliberately drive out competition
push marketing
promote products by pushing them on to people (short term sales)
pull marketing
establish a loyal following and draw consumers to the products - creates brand loyalty and keeps the customer coming back
undifferentiated marketing
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
differentiated marketing
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
concentrated marketing
focus on a single segment hoping to meet its exact needs better than any other organisation
