MKTG 361 Exam 2 Flashcards
1
Q
Consumer Behavior
A
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
2
Q
Consumer Decision-Making Process
A
a five-step process used by consumers when buying goods or services
3
Q
Need Recognition
A
result of an imbalance between actual and desired states
4
Q
Want
A
recognition of an unfulfilled need and a product that will satisfy it
5
Q
Stimulus
A
any unit of input affecting one or more of the five senses; sight, smell, taste, touch, hearing
6
Q
Internal Information Search
A
the process of recalling past information stored in the memory
7
Q
External Information Search
A
the process of seeking information in the outside environment
8
Q
Nonmarketing-controlled information source
A
a product information source that is not associated with advertising or promotion
9
Q
Marketing-Controlled Information Source
A
a product information source that originates with marketers promoting the product
10
Q
Evoked Set (consideration set)
A
a group of brands, resulting from an information search, from which a buyer can choose
11
Q
Cognitive Dissonance
A
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
12
Q
Involvement
A
the amount of time and effort a buyer invests in the search, evaluation, and decision process of consumer behavior
13
Q
Routine Response Behavior
A
consumers buying frequently purchased, low-cost goods and services; requires little search and decision time
14
Q
Limited Decision Making
A
requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
15
Q
Extensive Decision Making
A
used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluation options and much time for seeking information
16
Q
Culture
A
the set of values, norms, and attitudes that shape human behavior
17
Q
Value
A
the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
18
Q
Subculture
A
a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
19
Q
Social Class
A
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
20
Q
Reference Group
A
all of the formal and informal groups in society that influence an individual’s purchasing behavior
21
Q
Primary Membership Group
A
a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers
22
Q
Secondary Membership Group
A
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
23
Q
Aspirational Reference Group
A
a group that someone would like to join
24
Q
Norm
A
a value or attitude deemed acceptable by a group
25
Nonaspirational Reference Group
A group with which an individual does not want to associate
26
Opinion leader
an individual who influences the opinions of others
27
Socialization Process
how cultural values and norms are passed down to children
28
Personality
a way of organizing and grouping the consistencies of an individual's reactions to situations
29
Self-Concept
how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
30
Ideal Self-Image
the way an individual would like to be perceived
31
Real Self-Image
the way an individual actually perceives himself or herself
32
Perception
the process by which people select, organize, and interpret stimuli into a meaningful coherent picture
33
Selective Exposure
the process whereby a consumer notices certain stimuli and ignores others
34
Selective Distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
35
Selective Retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
36
Motive
a driving force that causes a person to take action to satisfy specific needs
37
Maslow's Hierarchy of Needs
```
Physiological
Safety
Social
Esteem
Self-Actualization
```
38
Learning
a process that creates changes in behavior, immediate or expected, through experience and practice
39
Stimulus Generalization
a form of learning that occurs when one response is extended to a second stimulus similar to the first
40
Stimulus Discrimination
a learned ability to differentiate among similar products
41
Belief
an organized pattern of knowledge that an individual holds as true about his or her world
42
Attitude
a learned tendency to respond consistently toward a given object
43
Business Marketing (industrial marketing)
the marketing of goods and services to individuals and organizations for purposes other than personal consumption
44
B2B Electronic Commerce
the use of the internet to facilitate the exchange of goods, services, and information between organizations
45
Stickiness
a measure of a Website's effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit (site reach)
46
Disintermediation
the elimination of intermediaries such as wholesalers or distributors from a marketing channel
47
Reintermediation
the reintroduction of an intermediary between producers and users
48
Strategic Alliance (strategic partnership)
a cooperative agreement between business firms
49
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
50
Trust
the condition that exists when on party has confidence in an exchange partner's reliability and integrity
51
Keiretsu
a network of interlocking corporate affiliates
52
Original Equipment Manufacturers (OEM)
individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or consumers
53
North American Industry Classification Systems (NAICS)
a detailed numbering system developed by the US, Canada, and Mexico to classify North American business establishments by their main production processes
54
Derived Demand
the demand for business products
55
Joint Demand
the demand for two or more items used together in a final product
56
Multiplier Effect (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
57
B2B Online Exchange
an electronic trading floor that provides companies with integrated links to their customers and suppliers
58
Reciprocity
a practice whereby business purchasers choose to buy from their own customers
59
Major Equipment (installations)
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
60
Accessory Equipment
goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
61
Raw Materials
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
62
Component Parts
either finished items ready for assembly or products that need very little processing before becoming part of some other product
63
Processed Materials
products used directly in manufacturing other products
64
Supplies
consumable items that do not become part of the final product
65
Business Services
expense items that do not become part of the final product
66
Buying Center
all those people in an organization who become involved in the purchase decision
67
New Buy
requiring the purchase of a product for the first time
68
Modified Rebuy
the purchaser wants some change in the original good or service
69
Straight Rebuy
the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
70
Market
people or organizations with needs or wants and the ability and willingness to buy
71
Market Segment
a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
72
Market Segmentation
the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
73
Segmentation Bias (variables)
characteristics of individuals, groups, or organizations
74
Geographic Segmentation
segmenting markets by region of a country or the world, market size, market density, or climate
75
Demographic Segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle
76
Family Life Cycle (FLC)
a series of stages determined by a combination of age, martial status, and the pretense of absence of children
77
Psychographic Segmentation
segmenting markets on the basis of personality, motives, lifestyles, and geodemographics
78
Geodemographic Segmentation
segmenting potential customers into neighborhood lifestyle categories
79
Benefit Segmentation
the process of grouping customers into market segments according to the benefits they seek from the product
80
Usage-rate segmentation
dividing a market by the amount of product bought or consumed
81
80/20 principle
a principle holding that 20 percent of all customers generate 80 percent of the demand
82
Satisfiers
business customers who place an order with the first familiar supplier to satisfy product and delivery requirements
83
Optimizers
business customers who consider numerous suppliers (both familiar and unfamiliar) solicit bids, and study all proposals carefully before selecting one
84
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
85
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
86
concentrated targeting strategy
a strategy used to select one segment of a market for targeting marketing efforts
87
Niche
one segment of a market
88
Multisegment Targeting Strategy
chooses two or more well-defined market segments and develops a distinct marketing mix for each of them
89
Cannibalization
a situation that occurs when sales of a new product cut into sales of a firm's existing product
90
Positioning
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
91
Position
the place of a product, brand, or group of products occupies in consumers' minds relative to competing offerings
92
Product Differentiation
a positioning strategy that some firms use to distinguish their products from those of competitors
93
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
94
Repositioning
changing consumers' perceptions of a brand in relation to competing brands
95
Largest Ethnic markets
Hispanic Americans
African Americans
Asian Americans
96
Motives
Marketers might appeal to emotional, rational, or status motives, among others
97
Personality
Reflects a person's traits, attitudes and habits
98
Bases for Segmenting Business Markets
Producers
Resellers
Government
Institutions
99
Buyer Characteristics
```
Demographic characteristics
Decision style
Tolerance for risk
Confidence level
Job responsibilities
```
100
Positioning Bases
```
Attribute
Price and Quality
Use or Application
Product User
Product Class
Competitor
Emotion
```
101
Marketing Intelligence
publicly available information
102
Marketing Decision Support System
an interactive, flexible computerized information system that enables managers to obtain and manipulate information
103
Database Marketing
the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns
104
Data Mining
...
105
The Role of Marketing Research
Descriptive
Diagnostic
Predictive
106
Descriptive
gathering and presenting factual statements
107
Diagnostic
Explaining data
108
Predictive
Address "what if" questions
109
Management Uses of marketing Research
- improve the quality of decision making
- Trace problems
- focus on keeping existing customers
- understand the marketplace
- alert them to marketplace trends
- gauge the value of goods and services, and level of customer satisfaction
110
The Marketing Research Process
```
Define Problem
Plan Design/Primary Data
Specify Sampling Procedure
Collect Data
Analyze Data
Prepare/Present Report
Follow Up
```
111
The Marketing Research Project
Problem
Objective
Management Decision Problem
112
Marketing Research Problem
determining what info is needed and how that info can be obtained efficiently and effectively
113
Marketing Research Objective
the specific info needed to solve a marketing research problem; the objective should be to provide....
114
Primary Data
info collected for the specific purpose at hand
115
Secondary Data
- information that already exists somewhere
positive: obtained more quickly, lower cost
negative: might not be usable data
116
Sources of Secondary Data
```
Internal corporate information
government agencies
trade and industry associations
business periodicals
news media
```
117
Secondary Data Pros
cheap
fast
pinpoints people to approach
serves as a basis of comparison for other data
118
Secondary Data Cons
may be old
may be different questions
quality and accuracy of data may pose a problem
119
Market Research Aggregators
Acquire, catalog, reformat, segment, and resell reports already published by large and small marketing research firm.
120
Planning the Research Design
Which research questions must be answered?
How and when will data be gathered?
How will the data be analyzed?
121
Primary Data Advantages
- answers a specific research question
- data are current
- source of data is known
- secrecy can be maintained
122
Primary Data Disadvantages
-Primary data can be very expensive.
123
Forms of Survey Research
- In-Home Interviews
- Mall Intercept Interviews
- Telephone Interviews
- Mail Surveys
- Executive Interviews
- Focus Groups
124
Questionnaire Design
- Clear and concise
- No ambiguous language
- Avoid leading questions
- Avoid two questions in one
125
Observational Situations
- People watching people
- People watching phenomena
- Machines watching people
- Machines watching phenomena
126
Research Alternatives
Observational: mystery shopping & behavioral
Ethnographic
Virtual Shopping:
Experiments
127
Experiments
...
128
Types of Samples
Probability Samples
| Non-Probability Samples
129
Probability Samples
..
130
Non-Probability Samples
..
131
Types of Errors
Measurement
Sampling
Frame
Random
132
Measurement Error
error when there is a difference between the information desired and the information provided by the process
133
Sampling Error
Error when a sample somehow does not represent the target population
134
Frame Error
Error when a sample drawn from a population differs from the target population
135
Random Error
Error because the selected sample is an imperfect representation of the overall population
136
Field Service Firms provide
- Focus groups facilities
- Mall intercept locations
- Test product storage
- Kitchen facilities
137
Cross Tabulation
A method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions
138
Preparing and Presenting the Report
- Concise statement of the research objectives
- Explanation of research design
- Summary of major findings
- Conclusion with recommendations
139
Text Message-Based Research
- quick follow-up to responders
- Wide demographic reach
- High feedback rates
140
Behavior Scan
research program that tracks the purchases of 3,000 households through store scanners in each research market
141
InfoScan
Sales-tracking service for the consumer packaged-goods industry
142
When should marketing research be conducted
- before launching product
- during launch
- after launch
143
Augmented Product
- Delivery and Credit
- After-Sale Service
- Installation
- Warranty
144
Actual Product
- Brand Name
- Quality Level
- Packaging
- Design
- Features
145
Product
everything, both favorable and unfavorable, that a person receives in an exchange.
- Tangible
- Service
- Idea
146
3 Levels of Distribution
Intensive
Selective
Exclusive
147
Business Product
a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers
148
Consumer Product
A product bought to satisfy an individual's personal wants
149
Types of Consumer Products
- Convenience Products
- Shopping Products
- -more involvement
- Specialty Products
- -roses?
- Unsought Products
- -nonprofit
150
Product Item
A specific version of a product that can be designated as a distinct offering among an organization's products
151
Product Line
A group of closely-related product items
152
Product Mix
All products that an organization sells
153
Benefits of Product Lines
```
Advertising Economics
Package Uniformity
Standardized Components
Efficient Sales and Distribution
Equivalent Quality
```
154
Adjustments to product items, lines, and mixes
Product Modification
Product Repositioning
Product Line Extension (addition) or Contraction (discontinue)
155
Planned Obsolescence:
The practice of modifying products so those that have already been sold become obsolete before they actually need replacement
156
Types of Product Modifications
Functional
Style
Quality
157
Product Line Extension
adding additional products to an existing product line in order to compete more broadly in the industry
158
Symptoms of Overextension
- some products have low sales or cannibalize sales of other items
- resources are disproportionately allocated to slow-moving products
- items have become obsolete because of new product entries
159
Branding
Brand name
Brand Mark
Brand Equity
Global Brand
160
Brand Name
That part of a brand that can be spoken, including letters, words, and numbers
161
Brand Mark
The elements of a brand that cannot be spoken
| logo, can be stolen if not used
162
Brand Equity
The value of the company and brand names
163
Global Brand
A brand where at least a third of the earnings come from outside its home country
164
Benefits of Branding
Product Identification
Repeat Sales
New Product Sales
165
Manufacturer's Brand
Brand name of manufacturer
166
Private Brand
Brand name owned by a wholesaler or a retailer. Also known as a private label or store brand
167
Captive Brand
brand manufactured by a third party for an exclusive retailer with no evidence of retailer's affiliation
168
Advantages of Manufacturers' Brands
- Heavy consumer ads by manufacturers
- Attract new customers
- Enhance dealer's prestige
- Rapid delivery, carry less inventory
- If dealer carries poor quality brand, customer may simply switch brands and remain loyal to dealer
169
Advantages of Private Brands
- earn higher profits on own brand
- less pressure to mark down price
- manufacturer can become a direct competitor or drop a brand/reseller
- ties customer to wholesaler or retailer
- wholesalers and retailers have no control over the intensity of distribution of manufacturers' products
170
Individual Brand
using different brand names for different products
171
Family Brand
marketing several different products under the same brand name
172
Advantages of Captive Brands
.
173
Types of Co-Branding
Ingredient Branding
Cooperative Branding
Complementary Branding
174
Trademark
exclusive right to use a brand
175
Functions of Packaging
```
Contain & Protect
Promote
Facilitate Storage, use and convenience
facilitate recycling
Greenwashing
```
176
Functions of Labeling
```
persuasive
informational
focuses on promotional theme
consumer information
helps make proper selections
lower cognitive dissonance
```
177
Universal Product Codes (1974)
A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.
178
Global Issues
```
Branding
-one brand name everywhere
-adaptations and modifications
-different brand names in different markets
Packaging
-Labeling
-Aesthetics
-Climate Considerations
```
179
Product Warranties
Warranty
Express Warranty
Implied Warranty
180
Warranty
A confirmation of the quality or performance of a good or service
181
Express Warranty
A written guarantee
182
Implied Warranty
An unwritten
