Exam 1 Flashcards
What is the goal of marketing?
To maximize revenue, to raise revenues, or even at the basic level
Market Share
How much of the market we have a foot in
How do we raise market share?
More New customers, more business with existing customers, fewer lost customers
What three things are marketing strategy a function of?
Segmenting, targeting, positioning
Who is a customer?
A person who identifies a need or desire, makes a purchase, and then disposes of a product
What are the market segmentation variables?
Geographics, demographics, psychographics, behavior graphics
What is consumer behavior?
The set of value seeking activities that take place as people go about addressing realized needs
What is consumption?
The process by which goods, services, or ideas are used and transferred into value
Who benefits from the study of consumer behavior?
Marketing managers, public policy makers/regulators, academics, consumers, ethicist/advocacy group 
Why does consumer behavior matter?
We can influence how customers act, shapes society, aid consumers to become responsible decision makers, helps business/marketing strategy
Why do marketers need consumer behavior information?
Helps understand the consumer, “fits” our products to the need and desires of the consumer, develop better marketing strategies, and can create value
What is value?
The personal assessment of the net worth obtained from an activity
What is the total value concept?
Every products value is made up of the basic benefits, plus the augmented product, plus the “feel” benefits
What influences value?
Internal(Psychology and personality) and external (Situation/social)
What does value influence?
The quality of the relationship, switching behaviors, customer loyalty, customer share, consumer satisfaction and dissatisfaction
What does marketing research help us with?
Helps to develop segmentation strategies, helps target specific segments, and helps understand how those segments act/might act
Who can conduct consumer research?
In-house marketing research departments, external marketing research firms, advertising agencies, syndicated data services, retailers, academics and research centers
What are the two types of research?
Qualitative and quantitative
What are the types of marketing research?
Focus groups, consumer panels, observational research, experiments, and market testing
What is a focus group?
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
What is observational research?
A technique in which researchers observe how consumers behave in real world surroundings
What is an experiment?
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
What is a test market (field experiment)?
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)
What is primary data?
Collected for current purpose, could be internal/external
How can primary data be collected?
Through experiments (lab studies), quasi experiments (test-markets), non-experimental (focus groups, projective techniques, and observations)
What is secondary data?
Collected for some other purpose
What are the different ways secondary data can be collected?
External (census, Gallup, etc) and internal (company records, data)
What is the rule of thumb in regards to collecting data?
Collect secondary data first then turn to primary data
What are the advantages of secondary data?
Time savings and low cost
What are the disadvantages of secondary data?
May be out of date, definitions or categories might not be what you’re looking for, might not be specific enough for your project
 What is correlation?
A relationship between two variables
What is causation?
One variable produce it affect in another variable
What are the three factors necessary for causation?
Correlation, temporal antecedent, no 3rd factor driving both
What is spurious correlation?
Artificial or fake relationship
What is product differentiation?
A marketplace condition in which consumers do not view all competing products as identical to one another
Why do we use perceptual maps?
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
What is perception?
Consumers awareness and interpretation of reality
What is value based on?
Perceptions not reality
What ways can we enhance attention?
Intensity, movement, size, contrast, surprise, and involvement
What can attention be?
Selective, divided, and limited
What is preattentive processing?
When we can pay attention when we don’t realize it
What is hemispheric lateralization?
The ways our brains process information in real time
