Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

GEOL > comm 204 m2 > Flashcards

comm 204 m2 Flashcards

1
Q

whats Consumer Behaviour

A

actions a person takes in purchasing and using products and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Model of Buyer Behaviour

A
  • Consumers are irrational
  • Consumer behaviour is perplexing…
  • but critical to marketing
  • Black box approach
  • Consumer behaviour is not an exact science.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Consumer Purchase Decision Process

A

When a person realizes that a difference between what he or she has and what he or she would like to have is big enough to actually do something about it

  1. needs recognition, 2. info search, 3. evaluation of alternatives, 4. purchase decision, 5. post purchase behavior
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what it means to Need Recognition

A

Can be triggered by internal or external stimuli
* Buyer becomes aware of a difference between a
desired state and an actual condition.
* Individual may be unaware of the problem or need.
* Marketers may use sales personnel, advertising and packaging to trigger recognition of needs or problems.
* Recognition speed can be slow or fast.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what does customer satisfaction depend on

A

Customer satisfaction depends on the product’s perceived performance relative to a buyer’s expectations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Consumers and marketers use _____ at every stage of the consumer decision making process.

A

social media

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

situational influence due to behavior

A

purchase task, social surroundings, physical surroundings, temporal effects, antecedent states

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

psychological influences on behavior

A

motivation and personality, perception, learning, values/beliefs/attitudes, lifestyle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

whats motivation

A

energizing force that stimulates behaviour to satisfy a need

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

whats Personality

A

person’s character trails that influence behavioral responses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Self-concept

A

–Actual – how people actually
see themselves
–Ideal – how people would like to see themselves

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Perception

A

Perception – the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Strategies and examples for dealing with perceived risk:

A

– Obtaining seals of approval
– Securing endorsements from influential people – Providing free trials of the product
– Providing illustrations
– Providing warranties and guarantees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Learning

A

Learning – behaviours that result from
repeated experience and reasoning
–continual process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Behavioural
Learning

A

developing automatic responses to
a type of situation built up through repeated
exposure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Cognitive Learning

A

involves making connections between two or more ideas or simply observing the outcomes of others’ behaviours and adjusting your own accordingly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Attitudes

A

A person’s relatively consistently favourable or unfavourable evaluations, feelings & tendencies toward an object or idea.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Psychographics

A

the analysis of consumer lifestyles that offers insight into behaviours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Personal Influence

A
  • Influenced by the views, opinions, or behaviours of others
    1)Opinion Leaders 2)Word of Mouth
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

An____ leader has the ability to influence the consumer choices of large numbers of people.

A

opinion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Reference Group

A

group of people who influence
a person’s attitudes, values, and behaviours
–Membership group – actually belongs –Aspiration group – wishes to be a member
–Dissociative group – wishes to maintain a distance from

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Family influences on consumer behaviour result from:

A
  1. Consumersocialization
  2. Familylifecycle
  3. Decisionmakingwithinthefamily
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Culture

A

set of values, ideas, and attitudes that are learned and shared among the members of a group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Product

A

a good, a service, or an idea, consisting of a bundle of tangible and intangible attributes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Types of Products

A

1)Non-durable good – an item that does not last and that is consumed only once
2)Durable good – product that lasts for an extended period of time
3)Service – intangible activity, benefit, or satisfaction; primary, supplemental & virtual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The Uniqueness of Services

A
  • Inventory – cannot necessarily be stored and accessed when in demand
    – Issues arise due to fluctuating demand
    – Difficulty in assessing the requirements needed to services customers at peak times
    – Idle production capacity – supply of service exceeds demand; expensive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Product Line Decisions Involve

A
  • Product line length
  • Line filling or line stretching
  • Product mix has four dimensions:
    –Width, Length, Depth, Consistency
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Consumer and Business Products

A
  • Consumer Products – purchased for
    personal use by the ultimate consumer
  • Business Products – purchased either to run a business or to be used as a component in another product or service
    –industrial goods or organizational products
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Business Products

A

PRODUCTION
–Raw materials
–Component parts
Derived Demand
* SUPPORT
–Installations
–Accessory equipment
–Supplies –Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Branding

A

A name, phrase, symbol, or design uniquely given by a company to a product to distinguish it from the competition.
–Needs to be developed and nurtured by marketing activity
Brand Strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Protecting Brands

A
  • Patents
  • Copyright
  • Trade marks
32
Q

Brand Equity

A

Is the dollar amount attributed to the value of the brand, based on all the intangible qualities that create that value.
* Basis for strong, profitable customer relationships

33
Q

Elements of Brand Equity

A
  • Brand name awareness * Brand loyalty
  • Perceived brand quality * Brand associations
34
Q

Brand Loyalty

A

“The degree of attachment that consumers have to a particular brand tells a marketer about their brand loyalty”
* Brand Loyalty – favourable attitudes that a consumer has over time toward a brand

35
Q

Degrees of Brand Loyalty

A

Insistence,
Preference ,Recognition

36
Q

Brand Equity Means

A
  • Brand becomes a differential advantage
  • Creates a barrier to entry
  • Can help product survive in its operating environment
37
Q

Brand Personality

A

set of human
characteristics associated with the brand
–often associate particular human personality traits with certain brands and prefer those whose personalities are most appealing
–most successful brands in Canada described as “creative” and “in control”

38
Q

A good brand name should:

A
  • suggest the product benefits
  • be memorable, distinctive, and positive * fit the company or product image
  • have the ability to be legally protected
  • be simple
39
Q

Brand Extension

A

Using a successful brand name to launch a new or modified product in a new category.

40
Q

The Product Life Cycle

A
  • Describes the stages that a new product goes through
  • Products are revamped, retooled, and repositioned to meet evolving consumer needs and competitive challenges
  • “The length of each stage in the product life cycle depends on the product, the category, and how it is being marketed.”
41
Q

whats a fad

A

Fad is a fashion that enters quickly, is adopted quickly and declines very fast

42
Q

Maturity is Characterized by:

A
  • Sales–peak.
  • Costs – low cost per customer. * Profits–high.
  • Marketing objectives – maximize profits while defending market share.
  • Product–diversifybrandand models.
  • Price – match or best competitors.
  • Distribution – build more intensive distribution.
  • Promotion – increase to encourage brand switching
43
Q

New Product Adoption

A

When an organization introduces a new product, people do not begin the adoption process at the same time, nor do they move through it at the same speed.

44
Q

Stages in the Adoption Process

A
  • Awareness * Interest
  • Evaluation * Trial
  • Adoption / Rejection
45
Q

Adopter Categories

A

Different market segments & strategies
* Innovators
* Early Adopters * Early Majority * Late Majority
* Laggards

46
Q

New Product Development

A
  • Expensive undertaking
  • High risk of failure
  • High research costs
  • Time and effort on developing prototypes and marketing materials
  • Expensive product launches
  • Lack of future credibility in the market
47
Q

steps of New Product Development Process

A
  1. new product development strategy
  2. idea generation
  3. screening and evaluation
  4. business analysis
  5. development
  6. test marketing
  7. commerciallization
48
Q

Why Develop New Products?

A
  • Follow changing market demands.
  • Remain competitive.
  • Keep up with changing technology.
  • Replace dying products. Refresh and evolve existing products.
  • Diversify product offering to reduce risk.
49
Q

why products fail

A
  • Poor execution of the marketing mix
  • Bad timing
  • Insignificant point of difference
  • Incomplete new concept definition
  • Insufficientmarket attractiveness
50
Q

how to avoid products fails

A

Poor execution of the marketing mix
* Ensure the 4 Ps—product (including brand name and package), price, promotion, distribution—are aligned and attractive to consumers.
* Focus on gaining sufficient distribution to access consumers.

Bad timing
* Launch products when consumers are eager to purchase. * Monitor market conditions and competitor actions.

Insignificant point of difference
* Determine a distinctive and meaningful point of difference for the target audience.
* Conduct research with consumers and monitor competitors’ products/activities.

Incomplete new concept definition
* Identify consumer insights and clearly define the product’s features and benefits.
* Develop a clear positioning.

Insufficient market attractiveness
* Identify a target market (with a need) that is large enough and has growth potential to support the product.

51
Q

Sources of New Product Ideas

A
  • Taking something out of a product * Adding something to a product
  • Combine something
  • Change format
  • Creating a visible difference
  • Consumer gripes
  • Making a task easier
  • Beg, borrow and steal
  • Product substitutability
  • Don’t be literal – be creative * Look overseas
52
Q

Development

A
  • Developing the product concept into a real working version of the product and subjecting it to a variety of tests
  • Calls for large jump in investment
  • Prototypes are made and tested
  • Prototype must have correct functional features and convey psychological characteristics
  • Technical feasibility * Functionality
  • Usage problems
  • Perceptual and believability problems
53
Q

Price

A

the money or other considerations, including other goods and services, exchanged for the ownership or use of a product
* Narrow definition.
– Price is the amount of money charged for a product or service.
* Broad definition.
– Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service.

54
Q

Barter

A

exchanging goods and services for other goods and services
– Billions of dollars annually in domestic and international trade

55
Q

Price is the element that

A
  • Creates revenue in the marketing mix
  • Is the most flexible in the marketing mix
  • Can create most problems for the marketing personnel if not carried out correctly.
56
Q

Would you rather get:
A. A 50% increase in quantity
B. A 33% discount in price

A

there the same

57
Q

Value Pricing

A

– increasing product or service benefits while maintaining or decreasing price
value=perceived benefits/price

58
Q

Internal Factors Affecting Price Decisions

A
  • Overall marketing strategy, objectives, and the marketing mix:
    – Company must decide its overall product marketing strategy before setting price
    – Pricing helps to accomplish company objectives – Coordinate pricing decisions with packaging,
    promotion, and distribution decisions – Positioning may be based on price
59
Q

Market Penetration

A
  • Setting a low initial price in order to “penetrate” the market quickly and deeply Can attract a large number of buyers quickly and win a large market share
  • Use when:
    – Market is price-sensitive; low price produces market growth – Costs fall as sales volume increases
    – Competition can be kept out of the market with low pricing
  • Market is price-sensitive; low price produces market growth
  • Costs fall as sales volume increases
  • Competition can be kept out of the market with low pricing
60
Q

Prestige Pricing

A
  • Prestige pricing is used to set prices for luxury products.
  • Unlike in the market skimming strategy, the high prices set for the product in the beginning would remain as it is.
61
Q

Loss Leaders

A

A retail pricing strategy in which a popular item is priced below cost to attract customers in hopes that they will buy many others (at normal mark ups)

62
Q

The Importance of Accurate Forecasting

A
  • Creating the correct price for a product begins the process of forecasting
  • Poor estimates can be detrimental
  • Both quantitative and qualitative analysis are used to make projections
  • Various forecasting methods
  • Profit and Loss
    – Accurate statements help organizations measure financial performance; revenues, costs, and expenditures over time
  • Return on Investment (ROI)
63
Q

The Importance of Accurate Forecasting

A
  • Creating the correct price for a product begins the process of forecasting
  • Poor estimates can be detrimental
  • Both quantitative and qualitative analysis are used to make projections
  • Various forecasting methods
  • Profit and Loss
    – Accurate statements help organizations measure financial performance; revenues, costs, and expenditures over time
  • Return on Investment (ROI)
64
Q

Fundamentals of Estimating Demand

A
  • Demand Curve - graph relating quantity sold and price, which shows how many units will be sold at a given price
    want-
     Consumer taste
     Price and availability of similar products
    ability to pay-
     Consumer incomes
65
Q

Elasticity

A

– A way of measuring how sensitive the market is to price changes.
– Inelastic – minimal change in demand as price increases.
– Elastic – significant drop in demand as price increases.

66
Q

Total Revenue Concept

A
  • Total revenue (TR) is the total money received from the sale of a product. If
    – TR = Total revenue
    – P = Unit price of the product
    – Q = Quantity of the product sold
  • Then
    – TR = P × Q
67
Q

Fixed cost (FC)

A

is the sum of the expenses of the firm that are stable and do not change with the quantity of product that is produced and sold. Examples of fixed costs are rent on the building, executive salaries, and insurance.

68
Q

Variable cost (VC)

A

is the sum of the expenses of the firm that vary directly with the quantity of product that is produced and sold. Examples are the direct labour and direct materials used in producing the product. Variable cost expressed on a per unit basis is called unit variable cost (UVC).

69
Q

Total cost (TC)

A

is the total expense incurred by a firm in producing and marketing the product. Total cost is the sum of fixed cost and variable cost.
* TC=FC+VC

70
Q

Break-even Equation

A

Break-even Point (in units)=
Total Fixed Costs/Per-Unit Selling Price AverageVariable Cost

Total Fixed Costs/
Per-Unit Contribution to Fixed Cost

71
Q

Breakeven Point

A

Breakeven Point = fixed costs/ per unit contribution to fixed costs
also
fixed costs/price-variable costs

72
Q

Legal and Ethical Considerations

A
  • Price Fixing – competitors collaborate and conspire
    to set prices
  • Price Discrimination – different customers get different prices
  • Deceptive Pricing – price offers that mislead
  • Predatory Pricing – low price set to drive competitors out of business
73
Q

Price Discrimination

A
  • Illegal practice of offering the same product of like quality and quantity to different business customers at different prices, thus lessening competition
    –Applies only to the sale of goods, competing business purchasers (not end users or consumers) & does not apply to concessions
74
Q

Predatory Pricing

A
  • Selling a product at a loss to drive competitors out of the market
  • It must be shown that prices are unreasonably low and that such prices have the effect of reducing competition
75
Q

Global Pricing Strategy

A
  • Dumping – occurs when a firm sells a product in a foreign country below its domestic price or below its actual cost
  • Grey Market (Parallel Importing) – situations where products are sold through unauthorized channels of distribution
    – Not strictly illegal in Canada or USA – Illegal in the European Union
76
Q

Setting a Final Price

A
  • Step 1: Select an Approximate Price Level
  • Step 2: Set the List or Quoted Price
    –On-price Policy –Flexible-price Policy
    Setting a Final Price
  • Step 3: Make Special Adjustments to the List or Quoted Price

Discounts – reductions from list price that a seller gives a buyer as a reward for some favourable activity
* Quantity Discounts
* Seasonal Discounts
* Trade (Functional) Discounts * Cash Discounts

Allowances – reductions from list or quoted price that a seller gives a buyer for performing some activity
* Trade-in Allowances
* Promotional Allowances

  • Step 4: Monitor and Adjust Prices
77
Q

Discounts & Allowances

A
  • Discounts-Cash, quantity, functional(trade), seasonal
  • Allowances –Trade-In. –Promotional.

GEOL (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions