Quiz 2: Ch. 5,6,7 Flashcards
What are the INTERNAL factors that effect consumer choices?
Personal characteristics
Psychological attributes
What is the Consumer Decision Process?
- Problem recognition
- Search for information
- Evaluation of alternatives
- Product choice decision
- Post purchase assessment
What are the EXTERNAL factors that effect consumer choices?
Cultural, situational, social
What is high consumer involvement?
The entire consumer process takes longer.
Greater motivation= greater involvement results + more active and committed decision process
High levels of satisfaction
What is low consumer involvement?
Little time comparing product attributes and frequently identifies very few differences across brands.
Little or no brand loyalty
Uses or little no thought at all
What is the business buying process?
- Problem recognition
- Define the need and product specifications
- Search for suppliers
- Seek sales proposals
- Make a purchase decision
- Post purchase evaluation of product and vendor
What are the major differences between the business buying process and the consumer buying process?
The middle steps.
Consumer- search for information, evaluation of alternatives
Business- define the need and product specifications, search for suppliers, seek sales proposals
What are the three types of buying decisions?
New purchase- first time purchase of product or service
Modified rebuy- familiar with the product or supplier, but still seek additional information
Straight rebuy- reorder products that are used on a consistent basis
What is segmentation?
Dividing a market into meaningful smaller markets or sub markets based on characteristics
What are the different ways of segmenting?
Geographic, demographic, psychographic, behavioral
What is target marketing?
Evaluating market segments and making a decision about which among them shows the most promise for development
What is undifferentiated target marketing?
Involves offering a product or service that can be perceived as valuable to a very generalized group of consumers. (Mass Marketing)
What is differentiated target marketing?
Developing different value offerings for different targeted segments
What is concentrated target marketing?
Involves targeting a large portion of a small market. (Focus or niche strategy)
What is positioning?
The communication of sources of value to customers so they can easily make the connection between their needs and wants and what the product has to offer
