Advertising Quiz 2

Utility

a product’s ability to satisfy both functional needs and symbolic or psychological wants

Exchange

a transaction in which a person or organization trades something of value for something valuable in return

Market Segmentation

involves two steps: identifying groups of people (or organizations) with shared needs and characteristics and aggregating (combining) these groups into larger market segments according to their interest in the product’s utility

Target Market

the market segment or group within the market segment toward which all marketing activities will be directed

Target Audience

the specific group of individuals to whom the advertising message is directed

Consumers

people who buy products and services for their own, or someone else’s, personal use

Business Advertising

advertising directed at people who buy goods and services for resale, for use in a business or organization, or for manufacturing other products

Behavioristic Segmentation

method of segmenting consumers based on the benefits being sought; most important variables are user status, usage rate, purchase occasion, and benefits sought

Usage Rates

the extent to which consumers use a product: light, medium, or heavy

User Status

six categories into which consumers can be placed, which reflect varying degrees of loyalty to certain brands and products

Sole Users

the most brand loyal and require the least amount of advertising and promotion

Semisole Users

typically use brand A but have an alternative selection if it is not available or if an alternative is promoted with a discount

Discount Users

semisole users of competing brand B; they won’t buy brand A at full price but might be tempted to buy it at a discount

Aware Nontriers

use competitive products in the category but haven’t taken a liking to brand A

Trial/rejectors

tried brand A but did not like it

Repertoire Users

perceive two or more brands to have superior attributes and will pay full price

Purchase Occasion

a method of segmenting markets on the basis of when consumers buy and use a good or service

Benefits

the particular product attributes offered to customers, such as high quality, low price, status, speed, sex appeal, good taste, and so on

Benefit Segmentation

method of segmenting consumers based on the benefits being sought

Geographic Segmentation

a method of segmenting markets by geographic regions based on the shared characteristics, needs, or wants of people within a region

Demographic Segmentation

based on a population’s statistical characteristics such as gender, age, ethnicity, education, occupation, income, or other quantifiable factors

Geodemographic Segmentation

combining demographics with geographic segmentation to select target markets in advertising

Psychographic Segmentation

method of defining consumer markets based on psychological variables including values, attitudes, personality, and lifestyle

Psychographics

the grouping of consumers into market segments on the basis of psychological makeup—values, attitudes, personality, and lifestyle

VALs (values, attitudes, lifestyles)

measures primary motivation and resources

Source

the party that formulates the idea, encodes it as a message, and sends it via some channel to the receiver; the source of a marketing message is the organization that has information it wishes to share with others

Message

in oral communication, the idea formulated and encoded by the source and sent to the receiver

Encoded

translating an idea or message into words, symbols, and illustrations

Semiotics

the study of how humans use words, gestures, signs, and symbols to convey feelings, thoughts, ideas, and ideologies

Channel

any medium through which an encoded message is sent to a receiver, including oral communication, print media, television, and the Internet

Personal Channels

means of communication that involve direct contact between the parties, such as personal selling

Nonpersonal Channels

means of communication that don’t involve interpersonal contact between the sender and the receiver; examples would include advertising, publicity, and sales promotion

Receiver

in oral communication, this party decodes the message to understand it; in advertising, the receiver is usually the consumer who receives the advertiser’s message

Decode

to interpret a message by the receiver

Noise

the sender’s advertising message competing daily with hundreds of other commercial and noncommercial messages

Feedback

a message that acknowledges or responds to an initial message

Interactive Media

media such as the Internet and interactive television that permit consumers to give instantaneous, real-time feedback on the same channel used by the original message sender

Consumer Behavior

the activities, actions, and influences of people who purchase and use goods and services to satisfy their personal or household needs and wants

Sentiment Analysis

identifying and analyzing written opinions, typically on the web, to assess attitudes and emotions towards a particular topic

Topic Modeling

an unsupervised machine learning technique that identifies word clusters within documents

Consumer Decision Process

Problem Recognition

Information Search

Evaluation and Selection

Store Choice and Purchase

Postpurchase Behavior

Personal Processes

perception, learning and persuasion, and motivation

Interpersonal Influences

social influences on the consumer decision-making process, including family, society, and cultural environment

Nonpersonal Influences

factors influencing the consumer decision-making process that are often out of the consumer’s control, such as time, place, and environment

Evaluation of Alternatives

choosing among brands, sizes, styles, and colors

Postpurchase Evaluation

determining whether a purchase has been a satisfactory or unsatisfactory one

Perception

our personalized way of sensing and comprehending stimuli

Stimulus

physical data that can be received through the senses

Perceptual Screens

the physiological or psychological filters that messages must pass through

Physiological Screens

the perceptual screens that use the five senses—sight, hearing, touch, taste, and smell—to detect incoming data and measure the dimension and intensity of the physical stimulus

Cognition

drawing on pre-existing knowledge for help in comprehending a stimulus

Self-Concept

the images we carry in our minds of the type of person we are and who we desire to be

Short-Term Memory

temporary repository for things a person is thinking about at any given moment

Long-Term Memory

a seemingly limitless storage area for what a person knows or has learned

Learning

a relatively permanent change in thought processes or behavior that occurs as a result of reinforced experience; information that is learned is stored in long-term memory

Cognitive Theory

an approach that views learning as a mental process of memory, thinking, and the rational application of knowledge to practical problem solving

Conditioning Theory

the theory that learning is a trial-and-error process; also known as stimulus response theory

Consumer Involvement

how important or relevant a decision is to a consumer

Persuasion

a change in thought process or behavior that occurs when the change in belief, attitude, or behavioral intention is caused by promotion communication (such as advertising or personal selling)

Central Route to Persuasion

One of two ways communication can persuade consumers. When a consumer’s level of involvement is high, the central route to persuasion is more likely. In the central route to persuasion, consumers are motivated to pay attention to product-related information, such as product attributes and benefits. Because of their high involvement, they tend to learn cognitively and comprehend the ad-delivered information at deeper, more elaborate levels.

Peripheral Route to Persuasion

When consumers have low involvement with a product or message, they have little reason to pay attention to or comprehend the central message of the ad. However, these consumers might attend to some peripheral aspects of an ad for its entertainment value. Consistent with stimulus-response theory, consumers may respond to the message at a later date, when a purchase occasion arises.

Attitude

the acquired mental position—positive or negative—regarding some idea or object

Brand Interest

an individual’s openness or curiosity about a brand

Habit

an acquired or developed behavior pattern that has become nearly or completely automatic

Brand Loyalty

the consumer’s conscious or unconscious decision—expressed through intention or behavior—to repurchase a brand continually; this occurs because the consumer perceives that the brand has the right product features, image, quality, or relationship at the right price