CONSUMER BEHAVIOR Flashcards
What is marketing research?
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.
What insights does marketing research provide to marketers?
Insights into customer motivations, purchase behavior, and satisfaction.
What are the three categories of research objectives in marketing research?
- Exploratory Research
- Descriptive Research
- Causal Research
What is exploratory research aimed at?
Gathering preliminary data to define the problem and generate hypotheses.
What does descriptive research focus on?
Describing market characteristics, such as demographics and behaviors.
What is causal research used for?
Testing specific hypotheses to understand cause-and-effect relationships.
Why is clear communication between manager and researcher important?
To ensure the research accurately addresses the problem.
What are the key components of developing the research plan?
- Defining Information Needs
- Data Sources
- Research Approaches
- Contact Methods
- Sampling Plan
- Research Instruments
What are the two main types of data sources in marketing research?
- Secondary Data
- Primary Data
What is observational research?
A method involving collecting data by observing people, actions, and situations without direct interaction.
What are the limitations of observational research?
Cannot capture emotions, motives, or private behaviors; interpreting findings can be challenging.
What is survey research?
The most common method for gathering primary data, collecting descriptive information about people’s knowledge, preferences, attitudes, and behaviors.
What are the advantages of telephone interviewing?
Gathers information quickly and provides greater flexibility than mail questionnaires.
Define probability sampling.
Each member of the population has an equal chance of being selected.
What is simple random sampling?
Every individual is chosen purely by chance.
What is stratified random sampling?
The population is divided into subgroups, and samples are taken from each subgroup proportionally.
What is cluster sampling?
The population is divided into clusters, and entire clusters are randomly selected for study.
What is convenience sampling?
Selecting participants who are easiest to reach.
What is judgmental/purposive sampling?
Researchers choose participants based on their expertise or judgment.
What are the two types of research instruments?
- Questionnaires
- Mechanical Instruments
What are closed-end questions?
Questions that include all possible answers for respondents to choose from.
What is the purpose of reinforcement in consumer behavior?
To increase the likelihood of a consumer choosing the same product in the future after a positive experience.
What are the four main groups influencing consumer behavior?
- Cultural Factors
- Social Factors
- Personal Factors
- Psychological Factors
What is Maslow’s Hierarchy of Needs?
A psychological theory that classifies human needs into a hierarchy, from basic physiological needs to self-actualization.
What is complex buying behavior?
High involvement, significant brand differences, often associated with expensive or risky purchases.
What is dissonance-reducing buying behavior?
High involvement, little brand differentiation, where consumers make quick decisions and may experience post-purchase dissonance.
What is habitual buying behavior?
Low involvement, little brand differentiation, characterized by routine purchases with little thought.
What is variety-seeking buying behavior?
Low involvement, significant brand differences, where consumers switch brands frequently for variety.
What is the first stage of the buyer decision process?
Problem Recognition (Need Awareness).
What triggers the problem recognition stage?
A consumer realizing a need or problem that requires a solution.
What drives consumers to switch brands?
Variety rather than dissatisfaction
Consumers often seek different options for the sake of novelty.
What is brand loyalty like according to the text?
Low
Purchases are often impulsive or driven by curiosity.
What is the first stage of the buyer decision process?
Problem Recognition (Need Awareness)
It starts when a consumer realizes a need or problem.
What can trigger problem recognition?
Internal and external stimuli
Examples include hunger, advertisements, or product unavailability.
What is involved in the Information Search stage?
Looking for information about possible solutions
Sources include personal, commercial, public, and experiential sources.
What factors do consumers evaluate in the Evaluation of Alternatives stage?
- Price
- Features
- Quality
- Brand reputation
Criteria depend on personal preferences and needs.
What influences the Purchase Decision?
- Unexpected situational factors
- Social influences
- Perceived risk
Factors such as price changes or peer pressure can affect decisions.
What is Post-Purchase Behavior?
Evaluation of satisfaction or dissatisfaction after a purchase
It can lead to brand loyalty or post-purchase dissonance.
What are the stages in the buyer decision process for new products?
- Awareness
- Interest
- Evaluation
- Trial
- Adoption
These stages can vary in speed and sequence.
Define ‘Relative Advantage’ in the context of product adoption.
The degree to which the innovation is perceived as superior to existing products.
Example: HDTV’s better picture quality increased its adoption rate.
What is ‘Compatibility’ in product adoption?
How well the product fits with the values and experiences of potential consumers.
Example: HDTV’s fit with TV-watching habits.
What does ‘Complexity’ refer to in the adoption of new products?
The degree to which the innovation is difficult to understand or use.
Simpler products tend to have faster adoption rates.
What is ‘Divisibility’ in the context of new product adoption?
The ability to try the innovation on a limited basis.
Limited trials can slow adoption if products are costly.
Define ‘Communicability’ in relation to new products.
The degree to which the results of using the innovation can be observed or described to others.
Visible improvements can accelerate adoption.
What does business buyer behavior refer to?
The buying behavior of organizations that purchase goods and services for production.
This includes retailing and wholesaling firms.
What is a key difference between business and consumer markets?
Market structure: Fewer but larger buyers
Demand in business markets is driven by consumer purchases.
What is the Buying Center?
All individuals involved in the buying decision.
It includes users, influencers, buyers, deciders, and gatekeepers.
Who are Users in the business buying process?
Individuals who will actually use the product or service.
They often initiate the buying process.
Define the role of Influencers in the buying process.
Individuals who help define specifications and provide information for evaluating alternatives.
They offer technical expertise.
What role do Buyers play in the business buying process?
Individuals with formal authority to select suppliers and negotiate terms.
They handle vendor selection and order processing.
Who are Deciders in the buying center?
Individuals who have the power to select or approve the final supplier.
This role may vary based on the complexity of the purchase.
What is the role of Gatekeepers in the buying process?
People who control the flow of information to others in the buying center.
They can prevent or allow access to decision-makers.
What are Environmental Factors in business buying?
- Economic Factors
- Supply Conditions
- Technological Factors
- Political and Regulatory Factors
- Competition
- Culture and Customs
These factors influence business buyers’ decisions.
What do Organizational Factors include in the buying process?
The organization’s objectives, strategies, structure, systems, and procedures.
They significantly influence buying decisions.
What are Interpersonal Factors in the business buying process?
Relationships and dynamics between individuals in the buying center.
Group dynamics can affect decision-making.
What are Individual Factors in the buying process?
Personal motives, preferences, and characteristics of individuals in the buying center.
Factors such as age, income, and personality traits.
What is the first stage of the business buying process?
Problem Recognition
It begins when a company identifies a need that can be solved by acquiring a product.
What occurs in the General Need Description stage?
The buyer creates a broad description of the required product or service.
This includes detailing characteristics and quantities needed.
What is the focus of the Product Specification stage?
Developing technical specifications for the product.
Experts may help define performance, durability, and cost.
What happens during the Supplier Search stage?
The buyer searches for the best suppliers.
This can involve reviews, online searches, and recommendations.
What is Proposal Solicitation?
Inviting qualified suppliers to submit proposals.
Proposals vary from catalogs to detailed written responses.
What factors are evaluated in the Supplier Selection stage?
- Quality
- Price
- Reputation
- Delivery times
- Corporate ethics
Negotiations may occur before final selection.
What is included in the Order-Routine Specification stage?
Finalizing the purchase order with the chosen supplier.
It includes quantity, delivery schedules, and warranties.
What is the Performance Review stage in the buying process?
Reviewing the supplier’s performance after the purchase.
Feedback helps decide on future relationships.
What is E-Procurement?
Buying goods and services online.
It has become standard practice for most companies.
What occurs after the purchase is complete in the buyer-supplier relationship?
The buyer reviews the supplier’s performance.
This includes contacting users to gauge satisfaction and may affect future supplier relationships.
What is e-procurement?
E-procurement refers to buying goods and services online.
It has become standard practice for most companies.
List three methods companies may use to engage in e-procurement.
- Reverse Auctions
- Online Trading Exchanges
- Company-Specific Buying Sites
What are two benefits of e-procurement?
- Cost and Time Efficiency
- Less Paperwork
What is a challenge of e-procurement?
Erosion of Relationships.
The ease of online comparison can harm long-term supplier relationships.
What is the first stage of the business buying process?
Problem Recognition.
This occurs when a company identifies a need that can be solved by acquiring a product or service.
What is involved in the General Need Description stage?
The buyer creates a broad description of the required product or service.
It details characteristics and quantity needed.
What does the Product Specification stage entail?
The organization develops technical specifications for the product.
This may involve input from experts to define performance, durability, and cost.
What happens during the Supplier Search stage?
The buyer searches for the best suppliers.
This can involve reviewing trade directories and online searches.
What is Proposal Solicitation?
The buyer invites qualified suppliers to submit proposals.
Proposals can range from basic catalogs to detailed presentations.
What criteria are used in Supplier Selection?
- Quality
- Price
- Reputation
- Delivery times
- Corporate ethics
What is included in the Order-Routine Specification step?
Finalizing the purchase order with the chosen supplier.
This includes specifications like quantity and delivery schedules.
What is the final stage of the business buying process?
Performance Review.
This involves assessing the supplier’s performance post-purchase.
What is Geographic Segmentation?
Dividing the market into distinct geographical units.
Examples include nations, regions, states, and neighborhoods.
What is Demographic Segmentation?
Dividing the market based on variables like age, gender, and income.
It aligns closely with consumer needs and purchasing behavior.
What is Psychographic Segmentation?
Dividing buyers based on social class, lifestyle, or personality characteristics.
What is Behavioral Segmentation?
Dividing buyers based on their knowledge, attitudes, uses, or responses to a product.
What are the requirements for effective segmentation?
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
What is Undifferentiated Marketing?
A strategy that targets the entire market with one offer.
What does Differentiated Marketing involve?
Targeting multiple market segments with tailored offerings.
What is Concentrated Marketing?
Focusing on a single, highly targeted segment of the market.
Define Micromarketing.
Designing products and marketing programs for specific individuals or local segments.
What is Local Marketing?
Customizing products and promotions for specific towns or neighborhoods.
What is Individual Marketing?
Focusing on customizing products for individual customers.
Also known as mass customization.
What should companies assess when selecting a targeting strategy?
- Resources
- Product Variability
- Product Life Cycle
- Market Variability
- Competitor Strategies
What are ethical concerns regarding targeted marketing?
Targeting vulnerable groups, such as children or low-income populations, with harmful products.
What is the challenge for a company using undifferentiated marketing?
Struggling to stand out against competitors using segmented or differentiated strategies.
What ethical concerns arise from targeted marketing?
Targeting vulnerable populations and privacy and data use.
What is an example of targeting vulnerable populations?
Targeting children with sugary cereals or low-income communities with harmful products.
What should marketers ensure regarding their targeting strategies?
Align with ethical standards and promote products that contribute positively to society.
What is a value proposition?
How a company creates distinct value for targeted segments.
How do consumers define a product’s position?
By how they perceive the product on key attributes compared to competing products.
What is the significance of brand positioning?
It helps consumers organize products and simplifies their buying decisions.
What are positioning maps used for?
To visually represent consumer perceptions of brands relative to competitors.
What does a perceptual positioning map show?
Brand positioning on key buying dimensions like price and quality.
What is a potential advantage of emphasizing multiple differentiations?
To appeal to several segments if competitors claim the same strengths.
What criteria should a differentiator meet?
Important, Distinctive, Superior, Communicable, Preemptive, Affordable, Profitable.
What is the complete positioning of a brand called?
Value proposition.
What is an example of a ‘More for More’ value proposition?
Rolex or Mercedes.
Fill in the blank: The same for less value proposition offers products at _______.
[lower prices].
What is the ideal value proposition?
More for less.
What is the formula for a positioning statement?
To [target segment and need], our [brand] is [concept] that [point of difference].
What must align with the positioning strategy?
All aspects of the marketing mix (product, price, place, promotion).
What is crucial for sustaining a strong market position?
Consistency in delivering and communicating the chosen position.
True or False: Abrupt changes in positioning can confuse consumers.
True.
