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MCS 3000 Advanced Marketing > Chapter 6 - Understand Consumer and Business Markets > Flashcards

Chapter 6 - Understand Consumer and Business Markets Flashcards

1
Q

Demographics

A

the characteristics of human populations and population segments, especially when used to identify consumer markets.

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2
Q

why it is helpful to understand the demographics of a target market?

A
  1. knowing the personal characteristics of a target market enables marketers to evaluate relevant statistics against competitors and the overall population using broad demographic studies like the US Censure Bureau reports.
  2. personal characteristics like age, income, and education play a critical role in consumer decision making, affecting information search, possible product choices, and the product decision itself.
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3
Q

family life cycle

A

A sequence of stages that families tend to progress through.

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4
Q

lifestyle

A

references an individuals perspective on life and manifests itself in that person’s activities, interests, and opinions.

  • helps marketing managers develop a holistic view of the individual
  • how people choose to live, and how a person lives dictates what she or he buys
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5
Q

gender roles

A

behaviors regarded as proper for men and women in a particular society

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6
Q

motivation

A

the stimulating power that induces and then directs behavior

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7
Q

Maslow’s hierarchy of needs theory

A

humans have wants and needs that influence their behavior. People advance to the next level only if the lower needs are met

  • psychological
  • safety
  • love/social
  • self esteem
  • self actualization
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8
Q

Herzberg’s two factor theory

A

certain factors in the workplace result in job satisfaction

  1. motivators: challenging work, recognition, and responsibility
  2. hygiene factors: status, job security, salary, and benefits
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9
Q

Aldelfer’s ERG theory

A

expansion on Maslow’s hierarchy, placing needs in three categories.

  1. existence
  2. relatedness
  3. growth
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10
Q

McClelland’s Achievement Motivation Theory

A

there are three categories of needs and people differ in the degree to which the various needs influence their behavior

  1. need for achievement
  2. need for power
  3. need for affiliation
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11
Q

attitude

A

a learned predisposition to respond to an object or class of objects in a consistently variable or unfavorable way

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12
Q

two categories of values

A
  1. cultural values based on national conscience

2. personal values held by the individual

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13
Q

multiattirbute model

A

evaluates an object on several important attributes

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14
Q

perception

A

a system to select, organize, and interpret information to create a useful, informed picture of the world.

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15
Q

perception is shaped by three psychological tools

A
  1. selective awareness
  2. selective distortion
  3. selective retention
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16
Q

selective awareness

A

helps people focus on what is relevant and eliminate what is not
- the challenge for marketers is breaking through peoples decision rules, which are designed to reject the vast majority of stimuli they see every day

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17
Q

selective distortion

A

information can be misunderstood or made to fit existing beliefs

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18
Q

selective retention

A

the process of placing in one’s memory only those stimuli that support existing belief and attitudes about. product or brand.

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19
Q

memory

A

where people store all past learning events

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20
Q

two types of memory

A
  1. short term: what is being recalled at the present time and is sometimes referred to as working memory
  2. long term: enduring storage, which can remain with the individual for years and years
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21
Q

learning

A

any change in the content or organization of long term memory behaviour

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22
Q

two fundamental approaches to learning

A
  1. conditioning: involves creating an association between two stimuli
  2. cognitive: involves mental processes that acquire information to work through problems and manage life situations
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23
Q

two types of conditioning

A
  1. classical: seeks to have people learn by associating a stimulus and response
  2. operant: entails rewarding a desirable behaviour
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24
Q

personality

A

a set of unique personal qualities that product distinctive responses across similar situations

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25
Q

Marketers need to be aware of culture for two reasons

A
  1. learning a target market’s culture is essential to an effective marketing strategy
  2. failing to understand cultural norms has a significant negative effect on product acceptance
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26
Q

culture

A

assimilates shared artifacts such as values, moral, beliefs, art, law, and customs into an organizes system that enables people to function as members of society.

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27
Q

language

A

an essential cultural building block and the primary communication tool in society

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28
Q

cultural vlaues

A

principle shared by a society that assert positive ideals

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29
Q

nonverbal communication

A

the means of communicating through facial expressions, eye behavior, gestures, posture, and nay other body language

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30
Q

subculture

A

a group within the culture that shares similar cultural artifacts created by differences in ethnicity, religion, race, or geography

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31
Q

family

A

a group fo two or more people living together and related by birth, marriage, or adoption

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32
Q

household life cycle (HLC)

A

consists of a fairly structured set of activities that begins when single people get married (20s), start a family (30s), rain kids (40s to 50s), watch as the kids grow up and leave home (50s to 60s), and finally enter into retirement (60s and beyond).

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33
Q

social class

A

a ranking of individuals into harmonized groups based on demographic characteristics such as age, education, income, and occupation

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34
Q

aspirational purchases

A

products bought outside the individual’s social standing

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35
Q

opinion leaders

A

fulfill and important role by classifying, explaining, and then bestowing information, most often to family and friends by occasionally to a broader audience

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36
Q

reference group

A

a group of individuals whose beliefs, attitudes, and behavior influence the beliefs, attitudes, and behavior of an individual.

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37
Q

three characteristics used to categorize reference groups:

A
  1. association
  2. desirability
  3. degree of affiliation
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38
Q

desirability

A

the extent and direction of the emotional connection an individual wishes to have with a particular group

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39
Q

degree of affiliation

A

indicates the amount of interpersonal contact an individual has with the reference group

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40
Q

primary groups

A

marked by frequent contact

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41
Q

secondary groups

A

marked by less frequent or limited dealings

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42
Q

high-involvement learning

A

someone stimulated to acquire new information

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43
Q

low-involvement learning

A

happens when people are not prompted to value new information

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44
Q

consumer decision making process

A
  1. problem recognition
  2. search for information
  3. evaluation of alternatives
  4. product choice decision
  5. post purchase decision
45
Q

internal information sources

A

information stored in memory and accessed by the individual

- the first place people consider for information

46
Q

external information sources

A

include independent groups, personal associations, marketer-created information, and experiences.

47
Q

awareness set

A

reduces the number of options

48
Q

consideration (evoked) set

A

encompasses the strongest options

- it is from here that the product decision is made

49
Q

4 purchase even characteristics

A
  1. physical surroundings
  2. social circumstances
  3. time
  4. state of mind
50
Q

Business to business markets (B2B)

A

Relationship with customer: invest more in maintaining personal relationships

number and size of customers: fewer but larger customers

geographic concentration: suppliers located strategically by the buyers

complexity of buying process: complex process that can take a long time and involve more people

complexity of supply chain: direct from supplier to manufacturer

demand for products: derived from consumer demand, fluctuates with changes to consumer demand, and more inelastic

51
Q

Business to consumer market (B2C)

A

relationship with customers: impersonal; exist through electronic communication

number and size of customers: more customers buy buy in smaller, less frequent quantities

geographic concentration: could be anywhere in the world

complexity of buying process: fewer people, often just one, directly involved in the purchase decision and the purchase decision is often based on personal and psychological benefits

complexity of supply chain: complex with products moving through the channel to reach the consumer

demand for products: consumer perceptions about their own needs mitigated by environmental factors and marketing stimuli

52
Q

supply chain

A

the synchronized movement of goods through the channel

53
Q

inelastic demand

A

changes in demand are not significantly affected by changes in price

54
Q

business buying decisions vary widely based on…

A
  1. nature of the purchase
  2. number of people involved in the decision
  3. understanding of the product being purchased
  4. time frame for the decision
55
Q

straight rebuy

A

companies use a wide range of products on a consistent basis and simply reorder when needed
- handled by one person in the purchasing department

56
Q

modified rebuy

A

occurs when the customer is familiar with he product and supplier but is looking for additional information

57
Q

new purchase

A

the purchase of a product or service by a customer for the first time

58
Q

North American Industry Classification System (NAICS)

A

defined 20 major business sectors based on a six digit hierarchical code

  • the first 5 digits are standardized across Mexico, Canada, and the US
  • the 6th digit enables countries to adjust the code to fit the country’s own unique economic structure
59
Q

original equipment manufacturers (OEMs)

A

Purchase goods to use in making their products

60
Q

end user purchases

A

represent the equipment, supplies, and services needed to keep the business operational

61
Q

capital equipment purchases

A

involve significant investments and include major technology decisions or critical equipment needed in the manufacturing process

62
Q

materials, repairs, and operational purchases (MRO)

A

products used in everyday business operations and are typically not considered a significant expense

63
Q

resellers

A

companies that buy products and then resell them to other business or consumers

64
Q

request for proposal (RFP)

A

putting product specifications into a document for distribution

65
Q

personal factors

A

refers to the needs, desires, and objectives of those involved in the purchase decision

66
Q

Knowing the _____ _____ of a target market enables marketers to evaluate relevant statistics against competitors and the overall population using broad demographic studies.

A

personal characteristics

67
Q

______ is an individual’s perspective on life and manifests itself in that person’s activities, interests, and opinions.

A

lifestyle

68
Q

The behaviors regarded as proper for men and women in a particular society are called _____.

A

gender roles

69
Q

An individual’s assessment of an object that evaluates the object on several important attributes is based on a(n):

A

multiattribute model

70
Q

______ is a psychological tool that people use to focus on what is relevant and eliminate what is not.

A

selective awareness

71
Q

______ learning involves mental processes that acquire information to work through problems and manage life situations.

A

cognitive

72
Q

_______ is a set of unique personal qualities that produce distinctive responses across similar situations.

A

personality

73
Q

Which of the following is the most important tool in developing and maintaining a strong customer relationship in business markets?

A

one-on-one personal communication

74
Q

As B2B companies connect with customers, it becomes more difficult for one individual (the ____) to keep up with the complexity of the relationships.

A

salesperson

75
Q

The _______ _______ requires a high level of coordination among the participants and facilitates the movement of goods through a channel to the ultimate consumer.

A

supply chain

76
Q

Demand for B2B products originates from the demand for consumer products and is called _____ _____.

A

derived demand

77
Q

A _______ occurs when companies use a product on a consistent basis and simply reorder when needed.
straight rebuy

A

straight rebuy

78
Q

When the customer is familiar with the product and supplier but is looking for additional information, the purchase is called a ______.

A

modified rebuy

79
Q

A(n) ____ ____ is the purchase of a product or service by a customer for the first time.

A

new purchase

80
Q

An tool developed in the 1990s for defining and segmenting business markets is a classification system known as the ______.

A

NAICS

81
Q

______ purchases are components used in the manufacturing process.

A

Original equipment manufacturer

82
Q

Companies that buy products and then resell them to other businesses or consumers are called ______.

A

resellers

83
Q

Organizations, such as the Small Business Administration, provide information on _____ contracts and contract personnel.

A

government

84
Q

In B2B markets, _______ are defined as nonprofits, hospitals, and other non-government organizations .

A

institutions

85
Q

Which of the following is not a stage in the business market purchase decision process?

A

evaluate the alternatives

86
Q

Internally, ________ frequently activate the business market purchase decision process as part of their job.

A

employees

87
Q

Which of the following are reasons why product specifications should be defined? Select all that apply.

A
  1. to help individuals inside the organization plan for the future
  2. to guide potential suppliers
  3. to give direction to the buying center
88
Q

Which of the following are methods used to determine the least of vendors? Select all that apply.

A
  1. create a list of preferred or approved suppliers

2. search for and identify potential suppliers

89
Q

Which of the following are reasons companies frequently solicit proposals from a number of vendors? Select all that apply.

A
  1. getting additional proposals helps in negotiating with the preferred vendor
  2. getting more information about all available options is a good idea.
90
Q

Components used in the manufacturing process are called ______ _______ _______ purchases. (Spell out your answer; do not use an abbreviation).

A

original equipment manufacturer

91
Q

True or false: product specifications are never written in such a way as to limit the number vendors.

A

false

92
Q

Often the final purchase decision involves trade-offs between equally important evaluation criteria and equally qualified _____.

A

vendors

93
Q

Which of the following is not a primary criterion used to evaluate the product choice?

A

promotional

94
Q

The needs, desires, and objectives of those involved in the purchase decision are called _____.

A

personal factors

95
Q

The primary organizational factor that affects product and supplier choices is ______ tolerance.

A

risk

96
Q

Dealing with complains, resolving customer problems, and making sure the company is meeting customer expectations are critical to ensuring _____ _____.

A

customer satisfaction

97
Q

_________ ________ _________ allows customer computers to communicate directly with supplier computers to reorder as needed. (Spell out your answer; do not use an abbreviation).

A

electronic data interchange

98
Q

_______ is the process of business purchasing online.

A

E-procurement

99
Q

Marketers realize that changes in life stage transform an individual’s buying habits and are referred to as the _____ ______ ______.

A

family life cycle

100
Q

The stimulating power that induces and then directs behavior is called _______.

A

motivation

101
Q

A(n) _______ is defined as a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

A

attitude

102
Q

_________ is a system to select, organize, and interpret information to create a useful, informed picture of the world.

A

perception

103
Q

__________ _________ is the process of placing in one’s memory only those stimuli that support existing beliefs and attitudes about a product or brand.

A

selective retention

104
Q

Any change in the content or organization of long-term memory or behavior is called _____.

A

learning

105
Q

Research suggest that consumers make product choices from which three perspectives? Select all that apply.

A
  1. attribute-based choice
  2. attitude-based choice
  3. emotional choice
106
Q

Match the term to its market.

A

B2B Market:

  1. direct supply chain from supplier to manufacturer
  2. derived demand that fluctuates and is more inelastic (less price sensitive)
  3. complex buying process that can take a long time and involve more people

B2C Market:

  1. more customers but buy in smaller less frequent quantities
  2. could be located anywhere in the world
  3. impersonal relationships that exist through electronic communication
107
Q

Place the stages of the consumer decision-making process in order, with he first stage at the top.

A
  1. problem recognition
  2. search for information
  3. evaluation of alternatives
  4. product choice design
  5. finally post-purchase evaluation
108
Q

A _______ state is the desire that reflects how people would like to feel or live in the present time.

A

preferred

109
Q

People live in the perceived reality of present time or ______ ______.

A

real state

MCS 3000 Advanced Marketing (2 decks)

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