Studied by 15 people
This contains the key terms and concepts in the notes for MRKT 341 Chapt 5-8
consumer buyer behavior
the buying behavior of final customers
consumer market
all individuals and households that buy goods and services for personal consumption
opinion leader
exerts social influence on people in the reference group because of special skills, knowledge, personality, etc.
social networks
online social communities where people exchange information and opinions (ex. Instagram)
perception
the process by which people select, organize and interpret information to form a meaningful picture of the world
learning
changes in individuals behavior arising from experience
need recognition
first stage of buyer decision process; customer recognizes a problem or need
info search
second stage of the buyer decision process; customer is motivated to search for more information
alternative evaluation
third stage of the buyer decision process; the customer uses information to compare brands in the choice set
purchase decision
fourth stage of the buyer decision process; the customer purchases the product/service
post purchase behavior
fifth stage of the buyer decision process; consumer take further action based on their satisfaction or dissatisfaction
cognitive dissonance
buyer discomfort caused by post purchase conflict
customer journey
sum of ongoing experiences consumers have with a brand that affect their buying behavior, engagement, and brand advocacy over time
high involvement
takes more time to plan, more decisions need to be made, usually more expensive; ex) dream vacation
low involvement
inexpensive, few attributes, and short purchase decision time; ex) can of beans
prospect theory
losses loom larger than gains; ex) a product that is marketed to work 95% of the time will attract more buyers than a product that is marketed to fail 5% of the time
anchoring
consumers use reference points when making judgements
Why is consumer behavior important?
Allows marketers to understand, appreciate and predict/influence potential customers
Factors that influence consumer purchase decisions/buying behavior
personal, situational, psychological, and social
How do marketers use the levels of customer involvement to make business descions?
To determine how to sell the product to customers; For instance, it would take more convincing for a customer to buy their dream vacation compared to a can of beans. So more money would need to be put into ads for the dream vacation.
Stages of the consumer buying process
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post Purchase Behavior
reciprocity theory
people feel obliged to give back to others; ex) if the server provides the table with a mint along with the bill, their tip will most likely increase
scarcity theory
people feel the need to get their share before the product is all gone; ex) toilet paper at the beginning of COVID
likeability theory
people prefer to say yes to people they like; ex) if the author of a book includes a personal message, youāll be more likely to recommend the book and maybe buy more copies to give out to people
consensus theory
people will look to the behavior of others to determine their own actions; ex) if you go into an empty drive thru, youāll likely see cars enter in behind you
Why do marketers use segmentation?
To determine who the market is and how to sell the product so itās appealing to their target market
segmentation
dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
target market
a set of buyers who share common needs that a company decided to serve
What are characteristics of a great target market?
size/growth, structural attraction, and skills/strength
How do marketers segment a market?
Understand the benefits the customers seek
Partition the market and develop prototypical customer profiles based on those benefits
Find observable variables that discriminate among the benefit segments
Categories of the Segmentation Library
benefits sought, behavioral, demographic, geographic, psychographic, and business to business
Benefits sought segments
dividing the market into segments according to different benefits that the customer seeks from the product
geographic segments
demographic segments
dividing the market into segments according to observable variables like age, gender, religion, etc.
psychographic segments
divides the market into segments according to personality and lifestyle
behavioral segments
divides the market according to usage, occasion, user status, usage rate or loyalty status
postioning
arranging the market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers
positioning statement
To (target segment and need) our (brand) is (concept) that (point of difference); summarizes company/brand positioning
value proposition
the full positioning of a brand - the full mix of benefits on which it is positioned
competitive advantage
gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices
mass marketing
undifferentiated; whole market in one offer
niche marketing
concentrated; large share of one or a few segments
micromarketing
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; local and individual marketing
local marketing
form of micro-marketing that tailors to cities, neighborhoods and even specific stores
What is a differentiated offering?
What a company does to make their product/service unique and better than competing offerings
Why does great marketing need differentiation?
It gives the customer a reason to buy the offering over all other offerings
product
anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
service
activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership if anything
core value
basic benefits gained from buying the product/service
actual product
the features the product/service offers
augmented product
peripherals for the product; ex) warranty, delivery, manual, etc
consumer product
bought by the final consumer for personal consumption
convenience product
bought frequently, immediately, and with minimal comparison and buying effort
shopping product
product that is usually compared on attributes like suitability, quality, price and style
specialty product
unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
service intangibility
services cannot be seen, tasted, felt, heard, or smelled before they are bought
service inconsistency
a.k.a. variability; ex) Shawn Mendesā concerts vary from night to night
service inventory
the services perish
brand equity
differential effect that knowing the brand name has on customer response to the product or itās marketing
brand value
total financial value of a brand
private label
a brand created and owned by the reseller of the product; ex) Cheerios
co-branding
practice of using an established brand names of two different companies on the same product
line extension
extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category
category extension
applying an existing brand name to a new product in a different product category; a.k.a. brand extension
new product development cycle
introduction ā growth ā maturity ā decline
introduction (PDC)
new product is first distributed and made available for purchase
growth (PDC)
sales start climbing quickly
maturity (PDC)
sales growth slows or levels off
decline (PDC)
sales fade away
7Ps
product, price, place, promotion, people, process, physical space and productivity
Note 
Flashcard (22)