mktg 409 exam 2

consumer feedback technology

retailers let customers post ratings and reviews, then monitor that feedback to decide which product features to promote or modify — and to respond to complaints directly.

ethical research

protects participants and the integrity of the data

market segment profile

describes the shared characteristics of customers within a segment and how they differ from other segments

• Building detailed data-driven clusters and using them to predict and select promising segments

buildup approach

figuring out how much a typical buyer in one geographic area will purchase, multiplying by the number of buyers in that area, then ADDING the totals across all areas. 

• Micro → macro (bottom-up)

• Estimates demand in a small area 

breakdown approach

• Macro → micro (big to small)

• Uses overall economic/industry data first 

regression analysis

uses historical data to find the relationship between a dependent variable one or more independent variables

market density analysis

A method that evaluates market potential based on the concentration (density) of customers or demand in a specific area. 

• Ex: more store locations in high-population urban areas than rural ones

consumer misbehavior

• behavior that violates the generally accepted norms of a society — shoplifting, fraud, piracy, and abusive conduct toward employees

net promoter score (NPS)

asks how likely you are to recommend a product to a friend, usually on a 0–10 scale — then subtracts the percentage of detractors from the percentage of promoters to produce a single score

reference group

a group whose attitudes or behavior a person uses as a guide

• Shaping buying behavior

types of research

exploratory, conclusive, quantitative, experimental, secondary

Exploratory - general and flexible 

1. Generates early insights about a fuzzy situation

2. Informal convos

3. exploratory comes first to understand the problem:

Conclusive - specific and structures 

1. Videos insights and helps select a course of action 

2. Usually though large formal, well-defined studies 

3. Clear data needs, well defined sources 

4. Findings are more final 

5. conclusive comes later to confirm and decide.

Quantitative - uses numbers & stats 

1. Answers questions like how much/many

2. describe/find patterns using numbers 

3. Ex: surveys, polls, measurements 

Experimental - test something by changing one thing to see what happens. 

1. control/experimental group 

2. Change one variable and see 

3. Cause and effect 

Secondary research - process of collecting and analyzing information that has already been gathered by other people or organizations

1. Books and textbooks

2. Academic journals and research papers

3. government reports or trade publications 

Marketing research process

1. locate and define the issue

2. design the research project 

3. collect data 

   1. Use secondary data 

4. interpret findings

5. report findings

International issues in marketing research 

1. May face sociocultural, language & regional differences 

2. Firms often hire local researchers 

   1. Improves quality & validity of primary data 

Ethical marketing research

1. instruct researchers to introduce themselves and the study honestly, 

2. clarify that no sale is involved,

3. state how long it will take, 

4. assure respondents that their answers are anonymous and confidential 

5. there are no right or wrong answers.

Four conditions to be a market 

1. the desire for the product

2. The willingness to buy

   1. Actually be ready to spend money on something

3. the ability (money) to buy

   1. Must have the money to buy something  

4. the authority to buy

   1. people must be allowed or legally able to buy it.

Targeting strategies

Concentrated, Differentiated, Undifferentiated, Psychographic

Concentrated - a company focuses on just one small group of customers. 

1. One product → ONE specific market

2. Example: A brand that only sells luxury watches for wealthy customers

3. Lets a firm specialize and compete even with limited resources

   1. it is risky: if that one segment's demand falls, so does the company.

Differentiated - a company targets many different groups with different products.

1. Aims at TWO OR MORE segments each with its OWN marketing mix tailored to that group 

2. Same company, but different versions for different people

3. Example: A car company selling cheap cars, family cars, and luxury cars

Undifferentiated - a company targets everyone with the same product and same marketing.

1. Assumes most people are similar 

2. Example: Same salt brand sold to all customers 

Psychographic - company targets people based on their lifestyle, personality, values, or interests. 

1. Not age or income, but how people think and live

2. Example: Ads for eco-friendly products for people who care about the environment

Segmentation variables 

Demographic, Geographic, Psychographic, and Behavioral, and benefit

Demographic - dividing people based on who they are. 

Age, gender, income, education, job, family size 

Geographic - dividing people based on where they live. 

1. Country, city, climate, region

2. Example: Selling warm jackets in cold countries and light clothes in hot places

Psychographic - divides a market market by personality, motives, or lifestyle

1. How people spend their time, what they value, activities/interests

2. Adventure, wellness, hustle 

Behavioral - dividing people based on how they act as customers.

1. Buying habits, usage rate, loyalty, response to products

2. Example: Rewards for frequent shoppers or discounts for first-time buyers

Benefit - divides a market by the specific benefits customers want from a product

1. Focuses on what benefit the customer wants 

2. Different types of toothpastes (whitening, sensitive teeth, cavity protection)

Evaluating market segments (steps) 

1. Identify the appropriate targeting strategy

2. Identify market segments

3. Develop market segment profiles

4. Evaluate relevant market segments

5. Select specific target markets

Step 1 — Identify the appropriate targeting strategy

How to target market 

Step 2 — Identify market segments 

1. splits the whole market into smaller groups

   1. Based on demographics, behavior, geography, etc. 

Step 3 — Develop market segment profiles 

1. The company describes each group in detail. 

   1. Understand each group 

Step 4 — Evaluate relevant market segments

1. Compare sales estimates, costs, and competitors presence 

2. Analytical comparison 

Step 5 — Select specific target markets

1. Final decision on who to serve

Consumer buying decision process 

1. problem recognition

2. Information search 

3. evaluation of alternatives 

4. purchase 

5. postpurchase evaluation

   1. Sometimes might skip information search or evaluation stages 

Situational influences

Physical surroundings, Reason for purchase, Time perspective

Physical surroundings

1. location, atmosphere, scent, lighting, layout

   1. Comfortable, inviting environments = keep customers around longer 

Reason for purchase

people buy differently depending on who its for 

Time perspective

1. how the amount of time available and the timing of a purchase affect consumer decisions. 

   1. Some purchases are tied to important life events (car, house, wedding)

Psychological influences 

Cognitive, affective, behavioral, and social

Cognitive

1. knowledge and belief

   1. When customers gain NEW INFO that shifts their beliefs about a product 

Affective

feelings & emotions 

Behavioral

actions 

Social

influence of family, friends, reference groups, culture, and society 

Types of decision making 

Routinized, limited, and extended

Routinized

behavior applies to frequently purchased, low-cost items a buyer chooses almost automatically with little thought.

Limited

involves some effort for occasional purchases;

Extended

applies to expensive, unfamiliar, high-risk purchases