Test 1: Chap 1-3

Question 1

Whats is the essential concept in marketing ?

Answer 1

To satisfy customer needs in order to make a profit.

Question 2

What marketing research tools do we have today, what we didn’t have 20-30 years ago ?

Answer 2

Technology has improved –> tracking consumers, better knowledge about marketing research

Question 3

What is the definiton of consumer behaviour?

Answer 3

The dynamic interaction of affect and cognition, behavior, and the environment by which human beings conduct the exchange aspects of their lives.

Question 4

What is consumer behaviour?

Answer 4

Consumer behaviour is the thoughts and feelings people experience and the actions they perform when purchasing products or services

Question 5

Mention 3 factors in the environment that affects thought, feelings actions

Answer 5

1. Advertisements
2. Comments from other consumers
3. Price information
4. Packaging
5. Product appearance

Question 6

Explain in short why consumer behaviour is thought to be dynamic and which consequences it has for a marketing company

Answer 6

Thinking, feelings, and actions of individual consumers, targeted consumer groups, and society at large are constantly changing.

• Company has to adapt marketing strategy more often
• Requires ongoing consumer research and analysis of important trends.
• Makes development of marketing strategies difficult and exciting.
• Shorter product life-cycle increases importance of constant innovation.

Question 7

What is important to understand about interactions as a marketer?

Answer 7

1. What products and brands mean to consumers?
2. What consumers must do to purchase and use them?
3. What influences shopping, purchase, and consumption?

(Interactions among people’s thinking, feelings and actions, and the environment)

Question 8

What is understood by “exchanges” in marketing?

Answer 8

Exchange between people involves giving up of something of value and receiving something in return.

Question 9

List the 3 approaches to studying marketing behaviour?

Answer 9

1. Interpretive
2. Traditional
3. Marketing Science

Question 10

Explain the basic concept of the “interpretive” approach.

Answer 10

Based on theories and methods from cultural anthropology.

Objective is to understand consumption and its meanings.

Methods of study involve:

1. Long interviews
2. Focus groups

Question 11

Explain the basic concept of the “Traditional” approach.

Answer 11

Based on theories and methods from cognitive, social, and behavioral psychology, and sociology.

Objective is to develop theories and methods to explain consumer decision making and behavior.

Methods of study involve:

1. Experiments
2. Surveys

Question 12

Explain the basic concept of the “Marketing Science” approach.

Answer 12

Based on theories and methods from economics and statistics.

Objective is to develop and test mathematical models to predict the impact of marketing strategies on consumer choice and behavior.

Methods of study involve:
1. Math-Modeling
2. Simulations
* Popular in consumer packaged goods industry
handles large scanner data sets

Question 13

List the 3 groups that use knowledge about consumer behaviour and how or why they use the information about consumer behaviour.

Answer 13

Marketing organizations

• Businesses attempting to sell products.
• Organizations that seek exchanges with consumers.

Government and political organizations
*Major concern is monitoring and regulating exchanges between marketing organizations and consumers.

Consumers

• Consumers and organizational buyers who exchange resources for various goods and services.
• Interest in making exchanges that help them achieve goals and the understanding of their own behavior.

Question 14

What is consumer “affect” ?

Answer 14

Affect refers to feelings about stimuli and events.

• Responses can be favorable or unfavorable.
• Responses can vary in intensity.

Question 15

What is consumer “cognition” ?

Answer 15

Cognition refers to thinking.

• Mental structures and processes involved in thinking, understanding, and interpreting stimuli and events.
• Aspects of cognition are conscious and automatic.

Question 16

What is consumer “behaviour” ?

Answer 16

Behavior refers to the physical actions of consumers that can be directly observed and measured by others.

• Also called overt behavior (out in the open)
• Critical for marketing strategy because only through behavior can sales be made and profits earned.

Question 17

What is consumer “enviroment” ? And why is it important for us as marketers

Answer 17

Environment refers to everything external to consumers that influences what they think, feel, and do.

1. Social stimuli
   * Cultures, subcultures, social classes, reference groups
2. Physical stimuli
   * Stores, products, advertisements, and signs

NB:
Important to marketing because it is the medium in which stimuli are placed to influence consumers. (Bonus question: How can we influence the environment as marketers?)

Question 18

Explain the concept of a “reciprocal system”

Answer 18

All three elements and their relationships must be considered in a comprehensive analysis.

Any of the three elements may be the starting point for consumer analysis.

This view is dynamic; recognizes that consumers can continuously change.

Consumer analysis can be applied at several levels.

Highlights the importance of consumer research and analysis in developing marketing strategies.

(Unsure about this?!)

Question 19

Illustrate the “The Role of Consumer Research and Analysis in Marketing Strategy” 2.2

Answer 19

(Unsure about this?!)

Question 20

Give 5 examples of possible stimuli

Answer 20

1. Products
2. Brands
3. Packaging
4. Advertisements
5. Coupons
6. Stores
7. Credit Cards
8. Price Tags
9. Salespeople’s Communication

Question 21

What is the Wheel of Consumer Analysis used to understand ?

Answer 21

Societies

Industries

Market segments

Individual consumers

Question 22

What is affect?

Answer 22

Feeling responses

• The affective system is largely reactive.
• People have little direct control over their affective responses.
• Affective responses are felt physically in the body.
• The system can respond to virtually any type of stimulus.
• Most affective responses are learned.

Question 23

What is cognition ?

Answer 23

Mental (thinking) responses

NB: Cognition broadly refers to the thoughts and meanings produced by the cognitive system, as well as to mental processes of:

• Understanding
• Evaluating
• Planning
• Deciding
• Thinking

Question 24

What is a Metaphors? Exemplify

Answer 24

Represent one thing in terms of something else.

• Time is like money
• I felt like I was frozen in time

Michelin showing a baby inside an automobile tire?

• Safety
• Responsibility
• Confidence

Question 25

How does Information-processing models work ?

Answer 25

Identify a sequence of cognitive processes where each process transforms or modifies information and passes it on to the next process, where additional operations take place.

Question 26

List the 3 types of cognitive learning

Answer 26

Accretion, Tuning and Restructuring

Question 27

Explain cognitive learning process named “Accretion”

Answer 27

As consumers interpret information about products and services, they
add new knowledge, meanings, and beliefs to their existing knowledge structures;
more complex types of cognitive learning that involve changes to the structure of
the associative knowledge network can also occur.

Question 28

Explain cognitive learning process named “Tuning”

Answer 28

Occurs when parts of a knowledge structure are combined and given a
new overall meaning; consumers may adjust their knowledge structures to make
them more accurate and more generalizable.

Question 29

Explain cognitive learning process named “Restructuring”

Answer 29

involves the revision of the entire associative network of
knowledge, which might include creation of entirely new meaning structures
and/or reorganization of an old knowledge structure; usually involves extensive
cognitive effort and substantial thinking and reasoning processes.