Marketing Exam 2 Study Guide Flashcards
The actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
Consumer Behavior
Step 1: Problem recognition,
Step 2: Information Search
Step 3: Alternative Evaluation
Step 4: Purchase Decision
Step 5: Post-purchase Behavior
Purchase Decision Process
When do consumers recognize problem?
starts with the difference between Consumers ideal situation and Consumer’s actual situation
Two types of information search
Internal search and External Search
Search information from past experience. Personal memory or habit.
Past-experience is insufficient
Perceived risk of wrong decision is high
Cost of getting external information is low
Internal Search
Consumer reports
Personal sources
Public sources
Marketer-dominated sources
External Search
- Suggests criteria for purchase
Evaluative criteria: The factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands. - Yields brands that meet criteria
Consideration set: The group of brands that a consumer would consider acceptable from among all the brands in the product class. - Develops value perception
Alternative evaluation process
The factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.
Evaluative criteria
The group of brands that a consumer would consider acceptable from among all the brands in the product class.
Consideration set
What decisions are made in the purchase decision stage?
Decide from whom to buy
Decide when to buy
The feeling of post-purchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
Cognitive dissonance
Three levels of involvement and their characteristics
Refers to the personal, social, and economic significance of the purchase to the consumer.
High involvement: Extended Problem Solving
Medium involvement: Limited Problem solving
Low Involvement: Routing problem solving
shows the importance of
1. Buying Experience, 2. Satisfaction and 3. Retention
Customer Lifetime Value
Purchase task:.Buying for self or for other
Social surroundings: Shopping with friends or with family.
Physical surroundings:Background music and scent
Temporal effects: How much time you have and when do you shop
Antecedent states: Whether credit card or cash is used. Your mood before the shopping.
Examples of Situational influences
is the energizing force that stimulates behavior to satisfy a need.
Motivation
A person’s consistent behaviors or responses to recurring citations. Ex: Openness to experience. Ex: Extroversion
Personality
refers to the way people see themselves and the way they believe others see them.
-Actual self
-Ideal self
Self-concept
Refers the process by which an individual selects, organizes,and interprets information to create a meaningful picture of the world.
Selective perception
-Selective exposure
-Selective comprehension
-Selective retention
Perception
Perceived risk
The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
-Obtain seals of approval
-Secure endorsements
-Provide free trials/samples
-Give extensive instructions
-Provide warranties/ guarantees.
Personal Influence:
A consumer’s purchases are often influenced by others. Ex: Rolex with Roger Federer
Reduce perceived risk
Companies can build trust through transparency, offer guarantees and clear information, showcase positive testimonials and reviews, and ensure accessibility and responsiveness.
Reference groups:
The people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
-Associative group ( belonging)
-Aspiration group (wish to join)
-Dissociative group (avoid)
B2B Marketing
Involves the marketing of products and services to companies,governments,or not for profit organizations for use in the creation of goods and services that they can produce and market to others.
B2C Marketing
Business to consumer marketing
Reseller Markets
Companies buy physical products and resell them again without any reprocessing. (Wholesalers and Retailers) Ex. Publix,Whole Foods, Aldi
PB is Private Brand
Organizational Buyers
Are those manufacturers,wholesalers,retailers,service companies, non-profit organization,and government agencies that buy products and services for their own use or for resale.
Industrial Markets
Organizations in some way reprocess a product or service they buy before selling/ providing it again to the next buyer/beneficiary.
Physical good: 25%
Ex. Apple purchased OLED panels from Samsung display.
Services: 75%
Ex. Hertz purchasing vehicles from Tesla
Ex. Chase bank purchases ATM machines from NCR
Government Markets
Government units buy goods and services for the constituents they serve. CIA and FBI.
Derived Demand
Refers the demand for industrial products and services that is driven by, or derived from, the demand for consumer products and services. Ex. Whirlpool. Derived demand is based on expectation of future consumer demand.
Size or order or purchase
Between organizational buying and consumer buying, which single purchase size would larger? (Dollar Value)
With so much money at stake, organizations place constraints on buying process in the form of purchasing policies and procedures.
Formal biddings are common in B2B marketing.
Number of potential buyers:
Ex. Goodyear sells products to individual consumers (more) and Car Manufacturers (less)
Personal selling is more effective than TV, Radio Commercials.
Relationship between buyer and supplier
Organization buying involves complex negotiations.
Long term contracts: Supplier development
Reciprocity (restricts free market)
Industrial buying practice in which two organizations agree to purchase each others’ products and services
Buying center (buying committee)
The group of people in an organization who participate in the buying process.
-Share common goals, risk, and knowledge
-Cross-functional group
-Roles in the buying center
Supply Partnership
When a Buyer and a seller adopt mutually beneficial objectives. Milsco and Harley-Davidson are examples
Roles in a buying center
Users- use the product.
Influencers- affect buying decision with knowledge
Buyers- Authority to negotiate and responsibility to select
Deciders- approve suppliers.
Gatekeepers- COntrol flow of information.
Buy classes
Similar role of Involvement level in Individual Consumer Decision Making.
New Buy
First-time purchase, greater risk
Straight Buy
Reorders an existing products or services
Modified Buy
When the organization wants to make a change in the product specifications, pricer, or schedule.
E-Marketplaces
Online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.
Countertrade
Refers the practice of using barter rather than money for making global sales (10-15% of world trade).
Trade Feedback Effect
A global perspective on world trade views exports and imports as complementary economic flows.
Reason of Bartering
Because of the lack of convertible currencies or lack sufficient cash or credit for imports.
Globalization
Is the focus on creating economic, cultural, political, and technological interdependence among individual national institutions and economies.
Balance of Trade
The difference between the monetary values of a nation’s exports and imports.
Economic Protectionism
Is the practice of shielding one or more industries within a country’s economy from foreign competition
Tariffs
Government tax on products or services entering a country.
Quota
Restriction placed on the amount of a product allowed to enter or leave a country.
United States-Mexico-Canada Agreement
Lifted Trade Barriers between Canada,Mexico, and U.S
Global Competition
It exists when companies originate, produce, and market their products and services worldwide.
International Firms
Engage in trade and marketing in different countries as an extension of the marketing strategy in its home country. Ex. Avon
Multinational Firms
View the world as consisting of unique parts and market to each country differently. Ex: Mr.Clean
Transnational Firms
View the world as one market and emphasizes cultural similarities across countries. Ex: McDonald’s
Multidomestic marketing strategy
A company comes up with as many different product variations, brand names, and advertising programs as countries in which they do business.
Global consumers
refer to consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.
Global marketing strategy
employ the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.
Cultural Diversity
Cultural Ethnocentricity
Belief that one’s culture is superior to another.
Cross Cultural Analysis
Involves the study of similarities and differences among consumers in two or more nations or societies
Societal values: preferable modes of conduct that persist over time
Customs: Considered normal in a country.
Symbols: Represent ideas and concepts in a culture
Language: Impacts how companies communicate in their ads.
Ex: Mcdonalds chicken replacement for Big Mac in India.
Marketing Research
The process of defining a marketing problem and opportunity, systematically collecting, analyzing information, and recommending actions.
Marketing Dashboard
Is the visual computer display of the essential information related to achieving a marketing objective.
Predictive modeling
Statistical models that use data mining and probability analysis to foretell outcomes.
Data mining
The practice of examining large databases to find statistical relationships between customer purchase patterns.
Constraints
refers to the restrictions placed on potential solutions to a problem.
Methods
are the approaches that can be used to collect data to solve all or a part of a problem.
Measures of Success
Criteria or standards used in evaluating proposed solutions to the problem.
