Exam 1

Question 1

What is the goal of marketing?

Answer 1

To maximize revenue, to raise revenues, or even at the basic level

Question 2

Market Share

Answer 2

How much of the market we have a foot in

Question 3

How do we raise market share?

Answer 3

More New customers, more business with existing customers, fewer lost customers

Question 4

What three things are marketing strategy a function of?

Answer 4

Segmenting, targeting, positioning

Question 5

Who is a customer?

Answer 5

A person who identifies a need or desire, makes a purchase, and then disposes of a product

Question 6

What are the market segmentation variables?

Answer 6

Geographics, demographics, psychographics, behavior graphics

Question 7

What is consumer behavior?

Answer 7

The set of value seeking activities that take place as people go about addressing realized needs

Question 8

What is consumption?

Answer 8

The process by which goods, services, or ideas are used and transferred into value

Question 9

Who benefits from the study of consumer behavior?

Answer 9

Marketing managers, public policy makers/regulators, academics, consumers, ethicist/advocacy group 

Question 10

Why does consumer behavior matter?

Answer 10

We can influence how customers act, shapes society, aid consumers to become responsible decision makers, helps business/marketing strategy

Question 11

Why do marketers need consumer behavior information?

Answer 11

Helps understand the consumer, “fits” our products to the need and desires of the consumer, develop better marketing strategies, and can create value

Question 12

What is value?

Answer 12

The personal assessment of the net worth obtained from an activity

Question 13

What is the total value concept?

Answer 13

Every products value is made up of the basic benefits, plus the augmented product, plus the “feel” benefits

Question 14

What influences value?

Answer 14

Internal(Psychology and personality) and external (Situation/social)

Question 15

What does value influence?

Answer 15

The quality of the relationship, switching behaviors, customer loyalty, customer share, consumer satisfaction and dissatisfaction

Question 16

What does marketing research help us with?

Answer 16

Helps to develop segmentation strategies, helps target specific segments, and helps understand how those segments act/might act

Question 17

Who can conduct consumer research?

Answer 17

In-house marketing research departments, external marketing research firms, advertising agencies, syndicated data services, retailers, academics and research centers

Question 18

What are the two types of research?

Answer 18

Qualitative and quantitative

Question 19

What are the types of marketing research?

Answer 19

Focus groups, consumer panels, observational research, experiments, and market testing

Question 20

What is a focus group?

Answer 20

A form of in-depth interview involving 6-12 consumers led by a moderator who asks participants to discuss a product, concept, or other marketing stimulus

Question 21

What is observational research?

Answer 21

A technique in which researchers observe how consumers behave in real world surroundings

Question 22

What is an experiment?

Answer 22

Researchers have direct control over every stimuli a subject is exposed to, so they can see how the subjects act what exposed to different stimuli

Question 23

What is a test market (field experiment)?

Answer 23

Studies the effectiveness of one or more elements of the marketing mix evaluating sales of the product in an actual market (e.g., a specific city)

Question 24

What is primary data?

Answer 24

Collected for current purpose, could be internal/external

Question 25

How can primary data be collected?

Answer 25

Through experiments (lab studies), quasi experiments (test-markets), non-experimental (focus groups, projective techniques, and observations)

Question 26

What is secondary data?

Answer 26

Collected for some other purpose

Question 27

What are the different ways secondary data can be collected?

Answer 27

External (census, Gallup, etc) and internal (company records, data)

Question 28

What is the rule of thumb in regards to collecting data?

Answer 28

Collect secondary data first then turn to primary data

Question 29

What are the advantages of secondary data?

Answer 29

Time savings and low cost

Question 30

What are the disadvantages of secondary data?

Answer 30

May be out of date, definitions or categories might not be what you’re looking for, might not be specific enough for your project

Question 31

 What is correlation?

Answer 31

A relationship between two variables

Question 32

What is causation?

Answer 32

One variable produce it affect in another variable

Question 33

What are the three factors necessary for causation?

Answer 33

Correlation, temporal antecedent, no 3rd factor driving both

Question 34

What is spurious correlation?

Answer 34

Artificial or fake relationship

Question 35

What is product differentiation?

Answer 35

A marketplace condition in which consumers do not view all competing products as identical to one another

Question 36

Why do we use perceptual maps?

Answer 36

We can see what people think of us
We can find out what the most important product attributes are
We can see who our competition is
We can make decisions about how our product should be positioned

Question 37

What is perception?

Answer 37

Consumers awareness and interpretation of reality

Question 38

What is value based on?

Answer 38

Perceptions not reality

Question 39

What ways can we enhance attention?

Answer 39

Intensity, movement, size, contrast, surprise, and involvement

Question 40

What can attention be?

Answer 40

Selective, divided, and limited

Question 41

What is preattentive processing?

Answer 41

When we can pay attention when we don’t realize it

Question 42

What is hemispheric lateralization?

Answer 42

The ways our brains process information in real time