Exam 2 Flashcards
The buying behavior of all final consumers—individuals & households that buy goods and services for personal consumption
Consumer buying behavior
All individuals & households that buy products/services for personal consumption
Consumer market
What 4 factors influence customer behavior? (Characteristics that influence their perception & reaction to stimuli)
-cultural
-social
-personal
-psychological
Groups within a society whose members share a distinctive set of beliefs, characteristics, or common experience
Subcultures
Relatively permanent & ordered divisions in a society whose members share similar values, interests, and behaviors
Social class
What are some examples of cultural factors?
-values
-language
-myths
-behaviors
-cultural customs
-religion
Direct influence, person belongs to
Membership group
A set of people a consumer wants to please or imitate
Reference group
Activities people are expected to perform
Role
Esteem given to a role
Status
What are some examples of social factors?
-groups
-family
-roles
-status
Change of goods or services over lifetime (life changing events like marriage, kids, etc.)
Age/life cycle
Income, savings, interest rates
Economic situation
Pattern of living expressed by activities, interests, opinions
Lifestyle
Choose brand with a similar personality
Personality/self-concept
Effects goods/services bought
Occupation
Need pressing enough to direct a person to seek satisfaction
Motive/motivation
Process where people select, organize, interpret, information to form a meaningful picture of the world
Perception
What are the three perceptual processes?
-selective attention
-selective distortion
-selective retention
The tendency for people to screen out most of the info. To which they’re exposed
Selective attention
The tendency of people to interpret info. in a way that supports what they already believe
Selective distortion
Consumers are likely to remember good points made about a brand they favor & forget good points made about competing brands
Selective retention
Changes in individuals behavior due to experience
Learning
A descriptive thought that a person has about something
Beliefs
Describes a persons relatively consistent evaluation, feelings, and tendencies toward an object or idea
Attitudes
What are the 5 stages of the consumer decision-making process?
- Need recognition
- Information search
- Evaluation of alternatives
- Purchase decision
- Post purchase behavior
What stage of the consumer decision-making process recognizes a problem or need?
Stage 1 (need recognition)
What stage of the consumer decision-making process actively searches for info. revolving around that need?
Stage 2 (information search)
What stage of the consumer decision-making process processes info. to evaluate brand choices?
Stage 3 (evaluation of alternatives)
What stage of the consumer decision-making process is the buyers decision about which brand to purchase?
Stage 4 (purchase decision)
What two factors can come in between the purchase intention and purchase decision?
-attitudes of others
-unexpected situational factors
What stage of the consumer decision-making process depends on how the consumer is feeling AFTER purchasing a good/service?
Stage 5 (postpurchase behavior)
satisfaction is important because it may affect the business
The process of dividing a market into groups of similar consumers and selecting the most appropriate group or groups to serve
Market segmentation
Consists of a group of customers who want to share a similar set of needs and wants
Market segment
What are the 5 steps in market segmentation?
- Determine consumer needs and wants
- Divide markets on relevant dimensions
- Decide target marketing strategy
- Develop product positioning
- Design marketing mix strategy
What are the 4 types of segmentation?
- Geographical
- Demographic
- Psychographic
- Behavioral
Geographical factors:
World region or country, region of country, city, etc.
Demographic factors (most popular segmentation):
Gender, age, cohorts, family size, income, religion, race
Psychographic factors:
Lifestyle, social class, personality-based segmentation
Behavioral factors:
Occasions, benefits, user status, attitude toward product
(Closely related to needs, wants, and usage)
What are the 5 requirements for effective segmentation?
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
Which market segmentation requirement involves size, purchasing power, profile of segment?
Measurable
Which market segmentation requirement involves the ability to be reached and served?
Accessible
Which market segmentation requirement involves being large and profitable enough to serve?
Substantial
Which market segmentation requirement involves the ability to respond differently?
Differentiable
Which market segmentation requirement involves the ability of effective programs to be developed?
Actionable
Evaluating each segment’s attractiveness and selecting one (or more than one) of the market segments to enter
Target marketing
What are market segments evaluated by?
-size & growth
-level of competition
-substitute products
-company objectives & resources
The place the product occupies in consumers minds relative to competing products (typically defined by consumers on the basis of important benefits and/or attributes)
Positioning
What is the key to successful positioning?
Differentiation
To make a unique offering that supports the desired benefit?
Differentiation
What are 5 ways a company can differentiate itself?
- Product differentiation
- Service differentiation
- Channel differentiation
- Personnel differentiation
- Image differentiation
What way of differentiating involves features, performance, style, & design?
Product differentiation
What way of differentiating involves speed & convenience?
Service differentiation
What way of differentiating involves channels coverage, expertise, &performance?
Channel differentiation
What way of differentiating involves selecting customer—contact people carefully, trains well?
Personnel differentiation
What way of differentiating must be supported by everything the company is, says, & does?
Image differentiation
What are the three levels of production?
- Core customer value
- Actual product
- Augmented product
What are the four product types?
- Convenience product
- Shopping product
- Specialty product
- Unsought product
Name, term, sign, symbol, design that identifies the maker/seller of a product/service
Brand
Something that adds value to a purchase and is part of the product. They also provide identification, quality, and consistency
Brand
Group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
Product line
Number of items in the product line
Product line length
Adding more items within the present price range
Product line filling
Adding more products that are higher/lower than existing price range
Product line stretching
Set of all product lines and items that a particular seller offers for sale
Product mix (or product portfolio)
What are the four product mix decisions?
- Width
- Length
- Depth
- Consistency
Which product mix decision deals with the number of different product lines the company carries?
Width
Which product mix decision deals with the total number of items a company carries within its product lines?
Length
Which product mix decision deals with the number of versions offered for each product in the line?
Depth
Which product mix decision deals with how closely related various product lines in end use, production requirements, distribution channels, or some other aspect?
Consistency
When a parent brand launches a new product line in a category already familiar with its customers
Line extension
Using an established brand to sell a new product or new product category
Brand extension
By having a portfolio of brands, a company can offer products with unique features and purposes, provide customers with a diversity of choices and target particular sections of the market
Multibrands
Entirely new brand with entirely new product
New brands
Any activity, benefit, or satisfaction that one party can offer another for sale that is essentially intangible and does not result in the ownership of anything
Services
What are some service characteristics?
-intangibility
-variability
-inseparability
-perishability
The positive differential effect that knowing the brand name has on customer response to the product or service
Brand equity
Strong brand equity has….
Higher consumer awareness, strong loyalty, aided with new products, less susceptible to price competition
What are four brand sponsorships?
- National brands
- Store brands
- Licensing
- Co-branding
Which brand sponsorship is marketed under the manufactures own name?
National brands
Which brand sponsorship is created and owned by a reseller of a product or service?
Store brands
Which brand sponsorship uses names and symbols created by other companies or well-known movie characters or celebrities for a fee?
Licensing
Which brand sponsorship uses the established brand names of two different companies on the same product?
Co-branding
What are the 8 stages of new product development?
- Idea generation
- Idea screening
- Concept development & testing
- Marketing strategy development
- Business analysis
- Product development
- Test marketing
- Commercialization
What stage of new product development involves the systematic search for new product ideas?
Idea generation (stage 1)
What stage of new product development involves screening new product ideas to spot good ones and drop poor ones as soon as possible?
Idea screening (stage 2)
What stage of new product development involves product idea, product concept, & concept testing?
Concept development & testing (stage 3)
What stage of new product development involves initial marketing strategy for a new product?
Marketing strategy development (stage 4)
What stage of new product development involves reviewing sales, costs, and profit projections for a new product?
Business analysis (stage 5)
What stage of new product development involves ensuring a product idea can be turned into a workable market offering?
Product development (stage 6)
What stage of new product development involves the product and its proposed marketing program introduced into realistic market settings?
Test marketing (stage 7)
What stage of new product development involves introducing a new product into the market?
Commercialization (stage 8)
An idea for a possible product that the company can see itself offering to the market
Product idea
A detailed version of the new product idea stated in meaningful consumer terms
Product concept
Testing a new-product concepts with groups of target customers to find out if the concepts have strong customer appeal. Would they buy it…?
Concept testing
