Term
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Definition
| processes a customer 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 |
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Term
| Stages of Consumer Decision Making |
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Definition
Need Recognition
information search
evaluate alternatives
purchase
post purchase |
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Term
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Definition
| Occurs whenever a consumer recognizes a difference between the current state and the ideal or desired state (internal/external cues/stimuli) |
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Term
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Definition
External: Additional info seeked from outside sources because they dont have enough from memory
Internal: buyers search their memories for info about products that might solve their
problem |
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Term
| Evaluation of alternatives |
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Definition
| to evaluate products in the consideration set buyers establish certain criteria by which to compare, rate and rank different products |
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Term
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Definition
-comparing outcomes to expected results
-cognitive dissonance: post purchase doubt. have we made it to the preferred state? |
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Term
| Factors that determine the level of consumer involvement |
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Definition
1. previous experience
2. interest
3. perceived risk
4. situation
5. social visibility |
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Term
| 3 categories of consumer buying decisions |
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Definition
routine response behavior
limited decision making
extensive decision making |
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Term
| routine response behavior |
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Definition
| the type of decision making exhibited by consumers buying frequently purchased low cost good and services recquires little search and decision time |
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Term
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Definition
-previous experience
-unfamiliar with current brands
-low/mid level of involvement |
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Term
| extensive decision making |
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Definition
| the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information |
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Term
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Definition
| group of people who share elements of the overall culture as well as cultural elements of their own group |
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Term
Social class
How is it measured? |
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Definition
A number of people who occupy the same relative economic rank in the stratification system.
income, status, occupation,education, social networks, political connections |
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Term
| Reference groups' 3 important implications |
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Definition
1. They serve as information sources and influence perceptions
2. They affect an individual's aspiration levels
3. Their norms either constrain or stimulate consumer behavior |
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Term
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Definition
-a person who is frequently able to influence others' attitudes or behaviors
-1st to try new products due to curiosity
-tend to possess more accurate knowledge |
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Term
| family roles in decision making |
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Definition
| 1.initiator, 2.influencer3.decision maker 4.purchaser, 5.user |
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Term
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Definition
| orderly series of stages through which consumers attitudes and behavior tendencies evolve through maturity, experience, and changing income and status. ex. young singles, young married, middle aged married |
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Term
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Definition
| how people view their own skills, interests, and competence level |
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Term
| how self concept and lifestyle influence behavior |
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Definition
| people have a concept of themselves and are not likely to purchase items that dont line up with that concept or dont fit in their lifestyle. |
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Term
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Definition
| an individual's changing or twisiting of information that is inconsistant with personal feelings or beliefs |
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Term
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Definition
| Remembering only information that confirms our beliefs |
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Term
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Definition
| people only expose themselves or attend to messages that are consistent with their own attitudes & beliefs |
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Term
| threshold level of perception |
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Definition
minimum difference in a stimulus that the consumer will notice
AKA "Just noticeable difference"
-- how much of a price change needs to occur for the customer to recognize it as a bargain? |
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Term
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Definition
| tendency for the conditioned stimulus to evoke similar responses after the response has been conditioned. For example, if a child has been conditioned to fear a stuffed white rabbit, it will exhibit fear of objects similar to the conditioned stimulus such as a white toy rat. |
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Term
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Definition
| a learned ability to tell the difference between similar things |
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Term
| How can attitudes be changed based on multi-attribute models? |
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Definition
-Changing beliefs
-Changing attribute importance
-adding new beliefs |
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Term
| What is business to business marketing? |
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Definition
| the marketing of goods and services to individuals and organizations for purposes other than personal consumption |
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Term
| consumer product vs business product |
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Definition
| a product that is purchased for personal or family consumption or as a gift is consumer good. if same product, such as pc is bought for use in a business, it is a business product. |
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Term
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Definition
| strategy that entails development and maintenance of long-term, cost-effective relationships with individual customers, suppliers, employees, and other partners for mutual benefit. |
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Term
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Definition
agreements among two or more independent firms to cooperate to achieve common goals
-ex: licensing agreement, joint ventures, partnerships |
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Term
| Types of business customers (4) |
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Definition
-producers
-resellers
-Gov't
-institutions |
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Term
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Definition
| use what they purchase to make other products |
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Term
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Definition
| Organizations that buy finished goods and resell them again without any reprocessing. |
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Term
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Definition
| demand for business products |
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Term
| business market characteristics that differ from consumer characteristics |
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Definition
1. derived demand
2. inelastic demand
3. increase purchasing volume
4. fewer customers
5. use of direct chanels ie: skip the middle man
6. reciprocity-purhcasing form you own customers
7.businesses lease where most consumers do not |
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Term
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Definition
| machinery, furniture, office furnishings, vehicles and other items used more than 1 year |
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Term
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Definition
goods, such as portable tools and office equipment that are less expensive and shorter-lived
ex: power drills, fax machines |
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Term
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Definition
| enter or become part of the finished product with little or no further change in form. ex: tires, engines, spark plugs |
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Term
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Definition
all people in an organization that become invovlved in the purchasing process
initiators
users
gatekeepers
influencers
buyers
deciders
approvers |
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Term
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Definition
New buy
Straight buy
modified rebuy |
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Term
| the characteristics of the market |
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Definition
1. people and organization
2. with needs or wants
3. with the ability
4. and willingness to buy
**if you lack any of these it is not a market |
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Term
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Definition
| consists of individuals, groups, or organizations sharing one or more similar characteristics that cause them to have similar product needs |
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Term
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Definition
identifying distinct groups of consumers whose purchasing behavior differs from others in important ways
-based on criteria such as:
--geography
--demographics
--sociocultural factors
--psychological factors |
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Term
| marketers segment for 3 important reasons |
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Definition
1. enables marketers to identify groups of customers with similar needs and to analyze the characteristics and buying behavior
2. provides them with info to help design marketing mixes
3. concept of satisfying customer wants and needs |
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Term
| Segmentation Bases (Variable) |
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Definition
characteristic of individual used to segment the market
1. Geographical Segmentation
2. Demographic Segmentation
3. Psychographic Segmentation- Personality, Motives (Babied),Lifestyle (Free Time), Geodemographic (All in one)
4.Benifit Segmentation
5. Usage Rate |
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Term
| (4) Reasons to Use Regional Approach to Marketing |
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Definition
1. New ways to generate sales b/c of sluggish and competitive markets
2. Computerized checkout w/ scanners show what products sell best in a region
3. New regional brands serve local preferences
4. Regional approach allows for quicker reaction to competition
Ex: Macy's |
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Term
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Definition
| Generally accepted rule that 80 percent of a product’s revenues come from 20 percent of its customers. |
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Term
| steps in a segmenting a market |
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Definition
1: select a market for study
2: choose bases for segmentation
3: select descriptors
4: profile and analyze segments
5: select target markets
6: design , implement, and maintain marketing mix |
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Term
| What are the Target Marketing Strategies? |
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Definition
1. Undifferentiated
2. concentrated
3. multisegmented |
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Term
| Advantages/Disadvantages of undifferentiated targeting strategy |
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Definition
Potential savings on production and marketing costs.
Disadvantages:
Unimaginative product offerings
Company more susceptible to competion |
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Term
| Advantages/Disadvantages of Concentrated Targeting Strategy |
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Definition
Advantage:
Concentration of resources
Meets narrowly defined segment
Small firms can compete
Strong positioning
Disadvantages
Segments too small, or changing
Large competitors may market to niche segment. |
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Term
| advantages/ disadvantages of multisegmented tageting |
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Definition
advantages: greater financial success, economies of scale in producing, marketing
disadvantages:high costs, cannibalization |
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Term
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Definition
deveoping a specific marketing mix to influence customers overall perception of the brand, product line, or organization in general
products position
the place a product occupies in consumers minds relative to competing offerings |
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Term
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Definition
| Changing consumers' perceptions of a brand in relation to competing brands (ex. Dr. Pepper 10) |
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