Marketing Flashcards
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
Consumer Behavior
A personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
Value
A value derived from a product or service that helps the consumer solve problems and accomplish tasks
Utilitarian Value
The value a consumer expects to obtain from a purchase
perceived value
A value that acts as an end in itself rather than as a means to an end
Hedonic value
A five-step process consumers use when buying goods or services
Consumer decisions-making process
- Step 1 of decision-making process
- Result of an imbalance between actual and desired states
Need recognition
- Recognition of an unfulfilled need and a product that will satisfy it
- Apart of Need Recognition
Want
- Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing
- Apart of Need Recognition
Stimulus
- Step 2 of decision-making process
- Can be internal or external
Information Search
- The process of recalling information stored in the memory
- Apart of Information Search
Internal information search
- The process of seeking information in the outside environment
- Apart of information search
External information search
A product information source that is not associated with advertising or promotion
non-marketing-controlled information source
- A product information source that originates with marketers promoting the product
Marketing-controlled information source
The extent to which an individual conducts an external search depends on his or her (4 answers)
perceived risk, knowledge, prior experience, level of interest in the good or service
A group of brands resulting from an information search from which a buyer can choose
Evoked set
A small intervention that can change a person’s behavior
nudge
The type of purchase typically made after the consumer has collected a large amount of information
Planned purchase
The type of purchase typically made when the consumer knows the product category but waits until shopping to choose a specific style or brand
Partially planned purchase
The type of purchase often low-prices items or items on sale or purchased with a coupon, sometimes triggered by a nudge
Impulse or unplanned purchase
Anticipation of receiving a highly desirable option only to have it become inaccessible
Jilting effect
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Cognitive dissonance
The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
Involvement
The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time
Routine response behavior
The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
Limited decision making
The most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information
Extensive decision making
Factors determining the level of consumer involvement (4)
previous experience, interest, perceived risk of negative consequences, social visibility
The practice of examining merchandise in a physical retail location without purchasing it and then shopping online for a better deal on the same item
Showrooming
For _____ _____ ____ _____, marketing managers should engage in extensive and informative promotions
High-involvement product purchases
For ____ ____ ____ _____, in-store promotion and targeted mobile ads are important tools
low-involvement product purchases
Offering products on a _____ _____ basis is one way marketers can increase involvement
limited availability
When a significant number of customers are switching brands
churning
The set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
Culture
______ is pervasive, functional, learned, and dynamic
culture
The most defining element of a culture is its ______
values
A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
Subculture
A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms
social class
All of the formal and informal groups in society that influence an individual’s purchasing behavior
reference group
A reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers
Primary membership group
A reference group with which people
associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group
Secondary membership group
A group that someone would like to join
aspirational reference group
A value or attitude deemed acceptable by a group
norm
A group with which an individual does
not want to associate
nonaspirational reference group
An individual who influences the opinions of others
opinion leader
How cultural values and norms are
passed down to children
socialization process
A perspective whereby a consumer
perceives themself as distinct and separate from others
separated self-schema
A perspective whereby a consumer
perceives themself as an integral part of a group
connected self-schema
A way of organizing and grouping the consistencies of an individual’s reactions to situations
personality
How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
self-concept
The way an individual would like to be perceived
ideal self-image
The way an individual actually perceives themself
real self-image
The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
perception
A process whereby a consumer notices certain stimuli and ignores others
selective exposure
A process whereby a consumer changes or distorts information that conflicts with their feelings or beliefs
selective distortion
A process whereby a consumer remembers only the information that supports their personal beliefs
selective retention
marketers must recognize the importance of _____, or signals, in consumers’ perception of products
cues
Marketers must identify the important attributes that the targeted consumers want in a product and then design ______ to communicate these attributes.
signals
Marketers must watch their brand _______ closely to maintain strong links between
perceived brand value and customer loyalty.
identity
Marketers must take care when changing such ______ as:
price,
package size,
product,
or product position or brand.
stimuli
A driving force that causes a person to take action to satisfy specific needs
motive
A method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self- actualization
Maslow’s hierarchy of needs
A process that creates changes in behavior, immediate
or expected, through experience and practice
learning
A form of learning that occurs when one response is extended to a second stimulus similar to the first
stimulus generalization
A learned ability to differentiate among
similar products
stimulus discrimination
A process whereby a consumer notices certain stimuli and ignores
others
selective exposure
People or organizations with needs or wants and the ability and willingness to buy
Market
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
Market segment
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
Market segmentation
- Helps marketers define customer needs and wants more precisely
- Helps understand customers’ lifestyles, values, jobs, need states, and buying occasions
Market Segmentation
Helps decision makers more accurately define marketing objectives and better allocate resources
Market Segmentation
A useful segmentation scheme must produce segments that meet four basic criteria:
Substantiality, Identifiability and measurability, accessibility, responsiveness
Which of the following terms refers to the idea that markets can be segmented using any criteria that seem logical?
a. Accessibility
b. Substantiality
c. Responsiveness
d. Identifiability
e. Measurability
c. Responsiveness
Characteristics of individuals, groups, or organizations
segmentation bases
Segmenting markets by region of a country or the world, market size, market density, or climates
geographic segmentation
segmenting markets by age, gender, income, ethnic background, and household life cycle
demographic segmentation
An individual’s internal perception of their gender and how they label themselves
gender identity
Shared cultural characteristics such as language, ancestry, practices, and beliefs
ethnicity
A series of stages determined by a combination of age, marital status, and the presence or absence of children
Household life cycle (HLC)
Segmenting markets based on personality, motives, lifestyles, and geodemographics
Psychographic segmentation
Segmenting potential customers into
neighborhood lifestyle categories
geodemogrpahic segmentation
The process of grouping customers based on the behaviors they exhibit, including what they buy, where they buy, when they buy, and how they buy
Behavioral segmentation
A principle holding that 20 percent of all customers generate 80 percent of the demand
80/20 principle
The process of grouping customers into market segments according to the benefits they seek from the product
benefit segmentation
Business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
Satisficers
Business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
optimizers
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
Target Market
A marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
undifferentiated targeting strategy
A strategy used to select one segment of a market for targeting marketing efforts
concentrated targeting strategy
One segment of a market
niche
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
Multi-segment targeting strategy
A situation that occurs when sales of a new product cut into sales of a firm’s existing products
Cannibalization
There are at least four trends that will lead to the continued growth of CRM:
Personalization, time saving, loyalty, technology
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
positioning
The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings
position
A positioning strategy that some firms use to distinguish their products from those of competitors
product differentiation
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
perceptual mapping
Firms use a variety of bases for positioning, including the following:
Attribute, price and quality, use or application, product user, product class, competitor, emotion
Changing consumers’ perceptions of a brand in relation to competing brands
repositioning
Everything, both favorable and unfavorable, that a person receives in an exchange
product
A relatively inexpensive item that merits little shopping effort
convenience product
A product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores
shopping product
A particular item for which consumers search extensively and are very reluctant to accept substitutes
speciality product
A product unknown to the potential buyer or a known product that the buyer does not actively seek
unsought product
A specific version of a product that can be designated as a distinct offering among an organization’s products
product item
A group of closely related product items
product line
All products that an organization sells
product mix
Product lines and even entire product mixes often share some marketing strategy components:
Advertising economies, package uniformity, standardized components, efficient sales and distribution, equivalent quality
The number of product lines an organization offers
product mix width
The number of product items in a product line
product line depth
Changing one or more of a product’s characteristics
Product modification
a change in a product’s dependability or durability to lower
the price or help the firm compete with rival firms
quality modification
a change in a product’s versatility, effectiveness,
convenience, or safety
functional modification
A change in how the product looks
style modification
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement
planned obsolescence
Adding additional products to an existing product line to compete more broadly in the industry
Product line extension
Three major benefits are likely when a firm contracts an overextended product line:
− Resources become concentrated on the most important products.
− Managers no longer waste resources trying to improve the sales and profits of poorly performing products.
− New-product items have a greater chance of being successful because more financial and human resources are available to manage them.
A name, term, symbol, design, or combination thereof that
identifies a seller’s products and differentiates them from
competitors’ products
Brand
That part of a brand that can be spoken, including
letters, words, and numbers
brand name
The elements of a brand that cannot be spoken
brand mark
The value of a company or brand name
brand equity
A brand that obtains at least one-third of its earnings
from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data
global brand
Consistent preference for one brand over all others
brand loyalty
consumers identify products they wish to buy again and avoid those they do not
repeat sales
a well-known and respected company and
brand name is extremely useful when introducing new products
new product sales
The brand name of a manufacturer
manufacturers’ brand
A brand name owned by a wholesaler or a retailer
private brand
A brand manufactured by a third party for an exclusive retailer, without evidence of that retailer’s affiliation
captive brand
Using different brand names for different
products
individual branding
Marketing several different products under the same brand name
family branding
Placing two or more
brand names on a product or its
package
co-branding
The exclusive right to use a brand or part of a brand
trademark
A trademark for a service
service mark
Identifies a product by class or type and cannot be trademarked
generic product name
(Circled R) Provides notice that your trademark is register in a given country
registered trademark symbol
(Capital TM) used by entities selling goods/services under a given name
unregistered trademark
(Capital SM) tells the public that you are seeking to protect the services sold under your trademark
service mark symbol
A type of package labeling that focuses on a promotional theme or logo; consumer information is secondary
persuasive labeling
A type of package labeling designed to help consumers make proper product selections and lower their
cognitive dissonance after the purchase
informational labeling
A series of thick and thin vertical lines
(bar codes) readable by computerized optical scanners that represent numbers used to track products
universal product codes
Which of the following is not one of the three aspects of
packaging that is especially important in international marketing?
A. Labeling
B. Size
C. Aesthetics
D. Climate
B. Size
Three aspects of packaging that are especially important in
international marketing:
labeling, aesthetics, climate
A confirmation of the quality or performance of a good or service
warranty
A written guarantee
express warranty
An unwritten guarantee that the good or
service is fit for the purpose for which it was sold
implied warranty
____ _____ are important to sustain growth, increase revenues
and profits, and replace obsolete items.
new products
Some companies choose to introduce a new product even when it will cannibalize sales of an _______ product.
existing
A product new to the world, the market, the producer, the seller, or some combination of these
new product
A plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation
new product strategy
______ wants and needs should be the springboard for product
ideas.
consumers’
Many firms have formal and informal processes in place for _______ to propose new-product ideas.
employees
________ are often more aware of customer needs than
manufacturers, so a well-trained sales force routinely asks distributors about needs that are not being met.
distributors
One purpose of competitive monitoring is to determine which, if any, of the _________’ products should be copied.
competitors
A marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products
product development
______ determine whether a company has a balanced portfolio of
products and, if not, what new product ideas are needed to offset the imbalance.
consultants
The first filter in the product development process, which eliminates ideas that are inconsistent with the organization’s
new-product strategy or are obviously inappropriate for some other reason
screening
A test to evaluate a new-product idea, usually before any prototype has been created
concept test
The second stage of the screening process, where preliminary figures for demand, cost, sales, and profitability
are calculated
business analysis
The stage in the product development process in which a prototype is developed and a marketing strategy is outlined
development
A team-oriented approach
to new-product development
simultaneous product development
The limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation
test marketing
The presentation of advertising and other promotional materials for several products, including a test product, to members of the product’s target market
simulated marketing testing
The decision to market a product
commercialization
A product perceived
as new by a potential adopter
innovation
The process by which
the adoption of an innovation spreads
diffusion
Five categories of adopters
participate in the diffusion process:
Innovators, early adopters, early majority, late majority, laggards
% of innovators
2.5%
% of early adopters
13.5%
% of early majority
34%
% of late majority
34%
% of laggards
16%
A concept that provides a way to trace the stages of a product’s acceptance, from its introduction (birth) to its decline (death)
It is simply a tool to help marketers forecast future events and suggest appropriate strategies
product life cycle (PLC)
All brands that satisfy a particular type of need
product category
Four stages of the product life cycle
introductory stage, growth stage, maturity stage, decline stage
The full-scale launch of a new product into
the marketplace
introductory stage
The second stage of the product life cycle, when sales typically grow at an increasing rate; many competitors enter the market; large companies may start to acquire small pioneering firms; and profits are healthy
growth stage
A period during
which sales increase at a slower rate
maturity stage
A long-run drop in sales
decline stage
