review

Question 1

marketing

Answer 1

marketing is the activities, institutions, processes that allow an organisation to understand, create, communicate, deliver and exchange an offering that is of value to consumers, clients and society at large

Question 2

Trade 


Answer 2

Exchange process
Two or more parties give something of value to each other
Satisfy needs

Question 3

sociocultural

Answer 3

social and cultural factors that affect people’s attitudes, beliefs, behaviours, preferences, customs and lifestyles 


Question 4

economic forces

Answer 4

Economic forces are the factors that help to determine the competitiveness of the environment in which the firm operates.

Question 5

political

Answer 5

Political forces describe the influence of politics on marketing decisions

Question 6

Marketing information system

Answer 6

system in which marketing data is formally gathered, stored, analysed and distributed to managers in accordance with their informational needs on a regular basis

Question 7

quantitative

Answer 7

Focuses on collecting data that can be represented numerically and analysed statistically.

Question 8

qualitative

Answer 8

focuses on obtaining rich, deep and detailed information

identify the attitudes and emotions that underlie the behaviour

Question 9

what type of research should you collect:

quantitative data
qualitative data

Answer 9

quantitative data: casual and descriptive

qualitative: exploratory

Question 10

Situational influences

Answer 10

on consumer behaviour are the circumstances consumers find themselves in when they are making purchasing decisions and/or consuming the product

Question 11

physical

Answer 11

the characteristics of the location in which the purchase decision is made (e.g. fashion 
retailers should install flattering lighting in the fitting rooms)

Question 12

social

Answer 12

the interactions with others at the time the purchase decision is made (e.g. the product 
knowledge and/or persuasiveness of a salesperson or ‘competition’ with other shoppers during post‐ Christmas sales); not to be confused with social influences on consumer behaviour, discussed later in this chapter 


Question 13

time

Answer 13

time — the time available for a purchase decision (e.g. a person who has left all of their Christmas shopping until Christmas Eve may not have the time to contemplate many options)

Question 14

motivational —

Answer 14

the reasons for the purchase (e.g. a person choosing a bottle of wine to bring to a dinner party is likely make a different decision based on different criteria than when choosing a bottle to consume at home over the evening meal)

Question 15

mood

Answer 15

the mood of a person at the time of the purchase decision (e.g. a person in a tired or emotional state may make a more impulsive decision).



Question 16

Group Factors

social and cultural

Answer 16

the influence of the values, beliefs and customs of the person’s community

the influence of other people

concerned with developing an understanding of the behaviour of the individual within the wider group

focused on understanding how the group influences the behaviour of its individual members, typically through group pressures on the individual to conform with group norms.

Question 17

Reference Groups

Answer 17

any group to which an individual looks for guidance as to what are appropriate values, attitudes or behaviours.

Question 18

opinion leader

Answer 18

An opinion leader is a reference group member who provides relevant and influential advice about a specific topic of interest to group members

The theory suggests that the influence of social groups on the decisions made by individuals determines the way and the rate at which new products and ideas are adopted and spread

Question 19

individual factors

Answer 19

demographic: describes the general makeup of the population in terms of measurable characteristics that are related to the purchase or consumption of goods
lifestyle: how they spend their time and how they interact with others
personality: individuals often choose to purchase products that reflect their personality

Question 20

Psychological

-motivation

Answer 20

Psychological characteristics describe internal factors that shape the thinking, aspirations, expectations and behaviours of the individual

Motivation: the individual’s internal drive to act to satisfy unfulfilled needs or achieve unmet goals.
While motivation is often specific to the individual and situation, some motives are consistent over time and across the population eg hunger at breakfast time

Perception: Perception is the psychological process that filters, organises and attributes meaning to external stimuli 

Beliefs and Attitudes: Beliefs and attitudes make up the ‘mental map’ that a consumer relies upon when making judgements about problems that require solutions and products

Learning: Learning is the process by which individuals acquire new knowledge and experience that they can apply to future problems, opportunities and behaviour.

Question 21

Branding

Answer 21

A collection of symbols, name, logos, slogan, design
Importance:
creates and image in the customer’s mind
differentiates products

Question 22

price

Answer 22

Concept of price
Price is a measure of value to both buyers and sellers.

Buyers judge price as a measure of the benefits they derive from the consumption of a product.

Price also serves as a means for buyers to allocate their scarce financial resources between purchases.

Question 23

Merchant wholesalers 


Answer 23

Merchant wholesalers are independently owned (i.e. not owned by the producer). They take ownership of the product from producers and sell it on to retailers.