module 6 Flashcards
Identify all the five steps in consumer decision-making process?
Problem recognition Information search Alternative evaluation Purchase decision Post-purchase behavior
Why is it important for marketers to understand “problem recognition” step in the consumer decision-making process?
Because that is when consumers are realizing they have a need, and drives the decision making process.
Minimal information search
no extensive research I.e. remembering there is a store near by
Limited information search
consumer makes a purchase decision based on incomplete info and/or lack of personal knowledge.
What are two basic sources of information?
Internal information sources: are all info stored in memory and accessed by the individual.
External info sources: seeking info outside. i.e. family, internet etc.
What are the three perspectives based on which consumers make product choices
Emotional, attitude-beliefs that dictate purchases, attribute-produce features or benefits considered relevant to the specific problem addressed.
Under what situations are consumers most likely to experience post-purchase dissonance?
High involvement, large purchases often lead to a level of doubt or anxiety.
What is segmentation?
Dividing a market into meaningful small markets or submarkets based on common characteristics.
What are the criteria for effective segmentation?
Sufficient size, readily identifiable/can be measured, clearly differentiated on one or more important dimensions when communicating the value of the product. Can be reached to deliver the value of the product.
What are four commonly used segmentation strategies.
Geographic: physical location
demographic: age, generational, gender, family, race etc,
psychographic: personality, lifestyle
behavioral: similarities in benefits sought or product usage patterns.
What are the three steps in target marketing?
Analyze market segments
Develop profiles of each potential target market
Select a target marketing approach
Identify different Target marketing approaches
undifferentiated, differentiated, concentrated, customized
undifferentiated target
mass marketing
differentiated target
different market segments
customized target
developing a relationship with each customer and then connect that knowledge with the firm’s production
