Chapters 5,6 and 7 exam review Flashcards
systematic design, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of opportunities
marketing research
what are the benefits of marketing research ?
facilitates strategic planning, assesses opportunities/ threats, ascertains potential for success, helps determine feasibility of a strategy, improves marketer’s ability to make decisions
yields descriptive non-numerical information
qualitative data
yields empirical information that can be communicated through numbers
quantitative data
conducted to gather more information about a problem or to make a tentative hypothesis more specific
exploratory research
designed to verify insights through objective procedure s and to help marketers in making decisions; used when the marketer has one or more alternatives in mind and needs assistance in the final stages of decision making
conclusive research
used to clarify the characteristics of certain phenomena to solve a particular problem; demands prior knowledge; may require statistical analysis
descriptive research
research that allows marketers to make causal inferences about relationships; need dependent and independent variables
experimental research
5 steps of the marketing research process
1) locating and defining issues or problems 2) designing the research project 3) collecting data 4) interpreting research findings 5) reporting research findings
an overall plan for obtaining the information needed to address a research problem or issue
Research design
an informed guess or assumption
hypothesis
marketing researchers must ensure that research techniques are both reliable and valid
research reliability and validity
a condition existing when a research technique produces almost identical results in repeated trials
reliability
a condition existing when a research method measures what it is supposed to measure
validity
data that is observed, recorded, or collected directly from respondents and is collected to address a specific problem that can not be answered by secondary data alone
Primary data
data that is compiled both inside and outside the organization and is for some purpose other than the current investigation
secondary data
source of secondary data; includes government sources, trade associations and shows, periodicals, and corporate information
external source
source of secondary data; organization’s own databases
internal source
al the elements, units, or individuals of interest to researchers for a specific study
population
a limited number of units chosen to represent the characteristics of the population
sample
sampling technique in which every element in the population being studied has a known chance of being selected for a study
Probability sampling
a type of probability sampling in which all units in a population have an equal chance of appearing in a sample
random sampling
a type of probability sampling in which the population is divided into groups according to a common attribute, a random sample is then chosen within the group
Stratified sampling
sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen
nonprobability sampling
a sampling technique in which researchers divide the population into groups and then arbitrary choose participants from each group
Quota
mail, telephone, personal interview surveys, shopping mall intercept, and online -digital media forms and crowdsourcing are all what type of method for collecting data
survey methods
can be used to gather useful information in understanding consumer decisions; provide a new way for marketers to conduct market research
digital media forms
for taking tasks usually performed by a marketer or researcher and outsourcing them to a potential market through an open call for ideas
Crowdsourcing
three kinds of questionnaire types
open-ended question, multiple-choice, and dichotomous
method where direct contact is avoided, notes are taken of subjects
observation method
focuses on what is typical and what deviates from the average
statistical interpretation
to report research findings…
prepare formal, written document, determine level of detail, clear and objective presentation, consider intended audience, point out deficiencies in data, summary/ recommendations
A framework for managing and structuring information gathered from internal and external sources
Marketing Information Systems (MIS)
a collection of information arranged for easy access and retrieval
databases
single-source data provided by single market research form
Single-source data
massive data files that can be obtained from both structured and unstructured databases
big data
employs database marketing techniques to identify different types of customers and develop specific strategies for interacting with each customer
Customer relationship management (CRM)
use of methods to measure and interpret the effectiveness of a firms marketing activities
marketing analytics
customized computer software that aids marketing managers in decision making
Marketing decision support systems (MDSS)
must have professional standards by which research can be judged
ethical and legal issues can develop as research is carried out
some organizations have developed codes of conduct and guidelines for ethical research for organizations
The importance of ethical marketing research
marketers must modify data-gathering methods to account for differences in socioculture, economic, political, legal and technical forces
use two-pronged approach to international marketing research
international issues in marketing research
a group of people who, as individuals or organizations, have needs for products in a product category and have the ability, willingness, and authority to purchase such products
Market
purchasers are household members who intend to consume or benefit from purchased products and do not buy products and do not buy products to make profits
consumer markets
individuals or groups that purchase a specific type of product for resale, direct use in producing other products, or use in general daily operations
business markets
a group of people or organizations for which a business creates and maintains a marketing mix specifically designed to satisfy the needs of group members
target market
the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs
Market segmentation
individuals., groups, or organizations with one or more similar characteristics that cause them to have similar product needs
market segments
should be a homogeneous market: customers have similar needs for a product
a single marketing mix directed at the entire market
undifferentiated targeting strategy
heterogeneous market: individuals or organizations with diverse needs for products in the same class
tarketimg a single market segment using one marketing mix
advantages: allows specialization and a small firm can compete
disadvantages: profits fall with demand and difficult to diversify
concentrated targeting strategy
heterogeneous market
targeting 2 or more segments with a marketing mix for each
advantages: could mean increased sales and uses excess production compacity
disadvantages: production costs are higher
Differentiated targeting strategy
characteristics of individuals, groups, or organizations used to divide a market into segments
segmentation variables
commonly include age, gender, race, religion, ethnicity, income, education, occupation, family size, family life cycle, and social class
Demographic variables
segmentation variable that includes climate, terrain, city, size, population density, and urban/rural areas
geographic variable
the number of potential customers within a unit of land area
market density
market segmentation that clusters people in units (zip codes, neighborhoods) based on lifestyle and demographic information
geodemographic segmentation
an approach to market segmentation in which organizations focus precise marketing efforts in very small geographic markets
micromarketing
can be used ny itself to segment a market or combine with other types of segmentation variables; personality characteristics, motives, lifestyles, VALS
Psychographic variables
Developed by SRI consulting business intelligence
Values, attitudes, and lifestyles (VALS)
divide a market according to some feature of consumer behavior toward a product, commonly involving some aspect of product use
behavioristic variables
the division of a market according to benefits that consumers want from the product
benefit segmentation
for it to be a benefit segmentation 3 conditions have to be met
1) benefits must be identifiable
2) customers must be divisible into segments
3) at least one segment must be accessible to marketing efforts
variables for segmenting business markets (4)
geographic location
types of organization
customer size
product use
required product features, distribution systems, price structures, and selling strategies
types of organization
may affect the purchasing procedures and types and quantities of products desired
customer size
describes the similarities among potential customers within a segment
Market Segment Profile
can be measured along several dimensions including product, geographic area, time, and level of competition
sales estimates
the total amount of product customers will purchase in a specified period
market potential
measuring company sales potential based on a general economic forcast
breakdown approach
the maximum percentage of market share a firm can expect for a product
company sales potential
measuring a company sales potential by estimating how much of a product a buyer will purchase
buildup approach
firms must assess competition already in the segments being considered
market segments that seem attractive based on sales estimates may be less so after the assessment
Competitive assessment
maintaining the right marketing mix can be expensive
firms must consider the cost of taking a potential product to market
cost estimate
identifying the right target is key to implementing a successful marketing strategy
select specific target markets
the decision process and actions of people involved in buying and using products
buying behavior
the decision process and purchasing activities of ULTIMATE CUSTOMERS, those people who purchase products for personal or household use and not for business purposes
consumer buying behavior
what are the 5 stages of the purchase decision process
1) problem recognition stage 2) information search stage 3) evaluation of alternatives 4) purchase stage 5) post-purchase evaluation
occurs when a buyer becomes aware of a difference between a desired state and an actual condition
Problem Recognition Stage
after recognizing the problem, they seek out product information
Information search stage
buyers search their memories for information about products that might solve their problem
internal search
when an internal search is not sufficient, consumers seek additional information from outside sources
external search
a group of brands within a particular product category that the buyer views as alternatives for possible purchase
consideration set (evoked set)
objective and subjective product characteristics that are important to the buyer
evaluative criteria
chooses the product or brand to be bought (product availability may influence the decision )
chooses the seller
negotiates the terms of the transaction
makes the actual purchase or terminates the process
Purchase Stage
after purchase, the buyer evaluates the product
is either satisfied or dissatisfied
post-purchase evaluation
a buyers doubts shortly after a purchase about whether the decision was the right one
Cognitive Dissonance
an individuals degree of interest in a product and the importance of the product for that person
level of involvement
visible to others and expensive, as well as issues of high importance; ex: healthcare, a home
High-involvement
tend to be less expensive and have less associated social risk. Ex: grocery items, t-shirt, gum
low- involvement
ongoing and long-term involvement with a product or product category EX: sports
enduring involvement
temporary or dynamic involvement resulting from a particular set of circumstances Ex: need to buy a new car after being in an accident
Situational Involvement
used when buying frequently purchased, low-cost items that require very little search and decision effort
Routinized Response
utilized when buying products occasionally or when one needs to obtain information about an unfamiliar brand in a familiar product category
limited problem solving
occurs when purchasing unfamiliar, expensive, or infrequently bought products
extended problem solving
involves no conscious planning; a powerful urge to buy something immediately
impulse buying
factors that result from circumstances, time, and location that affect the consumer buying decision process
Situational influence
5 categories of situational influences
physical surroundings, social surroundings, time dimension, purchase reason, buyers momentary mood and condition
1 of 5 situational influences; includes location, store atmosphere, aromas, sounds, lighting, weather, and other factors in the physical environment
Physical surroundings
includes characteristics and interactions of others who are present during a purchase decision
social surroundings
includes the amount of time required to become knowledgable about a product, to search for it, and to buy and use it
time dimension
what the product purchase should accomplish and for whom
purchase reason
those which operate in part to determine people’s genera; behavior and thus influence behavior as consumers; factors are internal but are affected by outside social forces
psychological influences
six categories of psychological influences
perception, motives, learning, attitudes, personality and self-concept, lifestyles
selecting, organizing, and interpreting information to produce meaning
perception
sensations received through sight, taste, hearing, smell, and touch
information inputs
Three steps of the perception process
selective exposure, selective distortion, selective retention
an individual selects which inputs will reach awareness; we cannot be conscious pf all inputs at one time
selective exposure
changing or twisting received information; occurs when a person receives information inconsistent with personal feelings or beliefs
selective distortion
remembering information inputs that support personal feelings and beliefs and forgets inputs that do not
selective retention
the five levels of needs that humans seek to satisfy, from most to least important
Maslow’s hierarchy of needs
five levels of Maslow’s hierarchy of needs
bottom level: physiological needs 2nd: safety needs 3rd: social needs 4th: esteem needs 5th: self-actualization needs
influence where a person purchases products on a regular basis (ex friendly salespeople )
patronage motives
3 sources of learning
1) behavioral consequences 2) information processing 3) Experience
3 major components of attitude
cognitive, affective, behavioral
major component of attitude; knowledge and information
cognitive
major component of attitude; feeling and emotions
affective
major component of attitude; actions regarding the object or idea
Behavioral
a means of measuring consumer attitudes by gauging the intensity of individuals reactions to adjectives, phrases, or sentences about an object
attitude scales
one’s view of one’s self; closely linked to personality type
self-concept
refers to an individuals pattern of living expressed through activities, interests, and opinions
lifestyle
the forces other people exert on ones buying behavior
social influence
actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons
Roles
have direct impact on the buying decision process
family influences
the process through which a person acquires the knowledge and skills to function as a consumer
consumer socialization
a group with which a person strongly identifies; adopts the values, attitudes, and behavior of group members
Reference group
a group to which an individual belongs
membership
a group to which an individual wants to belong
aspirational
a group to which an individual does not want to belong
dissociative
a member of an informed group who provides information about a specific topic about which other group members seek information; likely to be most influential in high product involvement situations
opinion leader
an open group of individuals with similar social rank
social class
the accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes onto future generations
culture
groups of individuals whos characteristic values and behavior patterns are similar and different from those of the surrounding culture
subculture
shoplifting, organized retail crime, consumer fraud, pirating or abusive consumers are all examples of
consumer misbehavior
