Chapters 6-8

Question 1

Market

Answer 1

group of people with needs for products

Question 2

To buy a product

Answer 2

must have the ability, willingness and authority to make a purchase

Question 3

Types of markets

Answer 3

Consumer market and business market

Question 4

Consumer market

Answer 4

purchasers who intend to consume or benefit from the product

Question 5

Business market

Answer 5

orgs or groups that profit from products

Question 6

Target market selection process

Answer 6

1. identify target market
2. segmentation
3. market segment profile
4. evaluate
5. select target market

Question 7

Target market

Answer 7

characteristics, product attributes, organization’s objectives

Question 8

Market segmentation

Answer 8

process of dividing a total market into groups with similar needs

Question 9

Undifferentiated approach

Answer 9

try to attract greatest number and variety of customers

Question 10

Concentrated approach

Answer 10

focus on one or a few narrow groups

Question 11

Variables

Answer 11

characteristics of markets used to divide into segments

Question 12

Variables must

Answer 12

relate to customers
be measurable
consider company and product

Question 13

Evaluating market segments

Answer 13

factors:
sales estimates
competition
estimated costs

Question 14

Buying behavior

Answer 14

decision processes of people involved in buying products

what, where, when and how consumers buy

Question 15

Consumer buying decision process

Answer 15

problem recognition
information search
evaluation of alternatives
purchase
postpurchase evaluation

Question 16

Internal search

Answer 16

consumers search their memory for products

Question 17

External search

Answer 17

buyers seek information from sources other than memory

Question 18

Cognitive dissonance

Answer 18

a buyer’s doubts shortly after a purchase

Question 19

Cognitive dissonance

Answer 19

a buyer’s doubts shortly after a purchase

Question 20

High-involvement products

Answer 20

products that are visible to others

ex: home, car, etc

Question 21

Low-involvement product

Answer 21

products that are less expensive or have less social risk

ex: groceries, t-shirt

Question 22

Routinized response behavior

Answer 22

decision-making process used when buying frequently purchased, low cost items that require little search
ex: soft drinks or cereal

Question 23

Limited decision making

Answer 23

decision-making process used when purchasing products occasionally or needing info about an unfamiliar brand
ex: vacation

Question 24

Extended decision making

Answer 24

decision-making process when purchasing unfamiliar, expensive products
ex: car, home, college

Question 25

Impulse buy

Answer 25

unplanned buying behavior

Question 26

Maslow's hierarchy

Answer 26

``` Psychological safety love esteem self-actualization ```

Question 27

B2B markets

Answer 27

consists of individuals, orgs or groups that purchase products for: resale direct use in producing other products use in daily operations

Question 28

Types of business markets

Answer 28

producer government reseller institutional

Question 29

MOST USED IN B2B

Answer 29

PERSONAL SELLING

Question 30

Producer markets

Answer 30

individuals and orgs that purchase products to make profit by making new products includes: buyers of raw materials etc

Question 31

Reseller Markets

Answer 31

intermediaries, such as retailers who buy finished goods and resell for profit

Question 32

Government markets

Answer 32

federal, state and local government that buy goods and services to support their internal operations government spending: 39% of US GDP

Question 33

Institutional markets

Answer 33

consists of orgs with charitable, educational or non-business goals

Question 34

Types of demands

Answer 34

inelastic, joint, derived, elastic

Question 35

Inelastic demand

Answer 35

price increase or decrease will not significantly change demand for a product

Question 36

joint demand

Answer 36

the use of two or more items in combo to produce a product

Question 37

derived demand

Answer 37

stems from demand from the consumer

Question 38

elastic demand

Answer 38

price increases - demand decreases

Question 39

business buying behavior

Answer 39

the purchase of producers, government units, resellers, etc

Question 40

The buying center

Answer 40

people within an organization who make business purchase decisions

Question 41

Users

Answer 41

members who initiate the purchase, use and eval the product

Question 42

influencers

Answer 42

technical personnel who develop specifications and eval product

Question 43

buyers

Answer 43

select suppliers and negotiate terms

Question 44

deciders

Answer 44

actually choose products

Question 45

gatekeepers

Answer 45

control the flow of information to and among people who occupy other roles

Question 46

business buying decision process

Answer 46

``` problem recognition specifications potential products selection evaluation ```

Question 47

problem recognition

Answer 47

step 1: one or more individuals recognize a product

Question 48

specifications

Answer 48

step 2: development of product specifications require the buying center participants to assess problem or need and determine what's necessary to solve it

Question 49

potential products

Answer 49

step 3: searching for and eval potential products and suppliers

Question 50

value analysis

Answer 50

eval of each component of the potential purchase

Question 51

vendor analysis

Answer 51

formal eval of current and potential vendors

Question 52

selection

Answer 52

step 4: select product to be purchased and what supplier

Question 53

multiple sourcing

Answer 53

when the buyer selects and uses several suppliers

Question 54

sole sourcing

Answer 54

when only one supplier is selected

Question 55

evaluation

Answer 55

step 5: performance is evaluated by comparing it with step 2

Question 56

buying situations

Answer 56

new buy, modified buy, straight buy

Question 57

new buy

Answer 57

starting from scratch

Question 58

straight rebuy

Answer 58

ran out of product, asks for more of the same

Question 59

modified rebuy

Answer 59

make product, found errors, make changes, ship again