Marketing 327 exam 2 Flashcards
Raw materials
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
segmentation bases, or variables
characteristics of individuals, groups, or organizations
Value
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
stimulus discrimination
a learned ability to differentiate among similar products
routine response behavior
the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time
Supplies
consumable items that do not become part of the final product
market segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
Benefit segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
buying center
all those people in an organization who become involved in the purchase decision
positioning
developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
Self-concept
how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
market segment
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
primary membership group
a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers
Selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
stimulus generalization
a form of learning that occurs when one response is extended to a second stimulus similar to the first
consumer decision-making process
a five-step process used by consumers when buying goods or services
modified rebuy
a situation in which the purchaser wants some change in the original good or service
strategic alliance
a cooperative agreement between business firms
derived demand
the demand for business products
80/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
multiplier effect (or accelerator principle
phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
target market
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
Limited decision making
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
separated self-schema
a perspective whereby a consumer sees himself or herself as distinct and separate from others
social class
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
Content marketing
a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant and consistent.
Geodemographic segmentation
segmenting potential customers into neighborhood lifestyle categories
Geographic segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
connected self-schema
a perspective whereby a consumer sees himself or herself as an integral part of a group
selective exposure
a process whereby a consumer notices certain stimuli and ignores others
concentrated targeting strategy
a strategy used to select one segment of a market for targeting marketing efforts
Business marketing (also called industrial, business-to-business, B-to-B, or B2B marketing)
the marketing of goods and services to individuals and organizations for purposes other than personal consumption
market
people or organizations with needs or wants and the ability and willingness to buy
Processed materials
products used directly in manufacturing other products
original equipment manufacturers, or OEMs
individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
Culture
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
perception
the process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
Utilitarian value
a value derived from a product or service that helps the consumer solve problems and accomplish tasks
niche
one segment of a market
Consumer behavior
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
socialization process
how cultural values and norms are passed down to children
showrooming
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
learning
a process that creates changes in behavior, immediate or expected, through experience and practice
extensive 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
aspirational reference group
a group that someone would like to join
Personality
a way of organizing and grouping the consistencies of an individual’s reactions to situations
Psychographic segmentation
segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
real self-image
the way an individual actually perceives himself or herself
Optimizers
business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one
Position
the place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings
stimulus
any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing
evoked set (or consideration set
a group of brands resulting from an information search from which a buyer can choose
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
North American Industry Classification System (NAICS)
a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes
consumer product
a product bought to satisfy an individual’s personal wants or needs
product differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
undifferentiated targeting strategy
a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix
Selective retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
perceived value
the value a consumer expects to obtain from a purchase
reciprocity
a practice whereby business purchasers choose to buy from their own customers
Major equipment
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
motive
a driving force that causes a person to take action to satisfy specific needs
Trust
the condition that exists when one party has confidence in an exchange partner’s reliability and integrity
opinion leaders
an individual who influences the opinions of others
Nonaspirational reference groups
a group with which an individual does not want to associate
cannibalization
a situation that occurs when sales of a new product cut into sales of a firm’s existing products
marketing-controlled information source
a product information source that originates with marketers promoting the product
want
recognition of an unfulfilled need and a product that will satisfy it
Maslow’s hierarchy of needs
a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization
Accessory equipment
goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
secondary 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
family life cycle (FLC)
a series of stages determined by a combination of age, marital status, and the presence or absence of children
keiretsu
a network of interlocking corporate affiliates
Perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds
Usage-rate segmentation
dividing a market by the amount of product bought or consumed
Business services
expense items that do not become part of a final product
Involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
hedonic value
a value that acts as an end in itself rather than as a means to an end
Need recognition
result of an imbalance between actual and desired states
Component parts
either finished items ready for assembly or products that need very little processing before becoming part of some other product
reference group
all of the formal and informal groups in society that influence an individual’s purchasing behavior
Relationship commitment
a firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
ideal self-image
the way an individual would like to be perceived
nonmarketing-controlled information source
a product information source that is not associated with advertising or promotion
straight rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
Joint demand
the demand for two or more items used together in a final product
multisegment targeting strategy
a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each
Repositioning
changing consumers’ perceptions of a brand in relation to competing brands
business product, or industrial product
a product used to manufacture other goods or services, to facilitate an organization’s operations, or to resell to other customers
demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
Satisficers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
internal information search
the process of recalling past information stored in the memory
business-to-business online exchange
an electronic trading floor that provides companies with integrated links to their customers and suppliers
new buy
a situation requiring the purchase of a product for the first time
external information search
the process of seeking information in the outside environment
subculture
a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
norm
a value or attitude deemed acceptable by a group
What are the five steps in the consumer decision making process?
There are 5 steps in a consumer decision making process a need or a want is recognized, search process, comparison, product or service selection, and evaluation of decision. Most decision making starts with some sort of problem. The consumer develops a need or a want that they want to be satisfied.
