Learn: Marketing Exam 2

Consumer buyer behavior

The buying behavior of final consumers who purchase goods and services for personal consumption.

Consumer market

All individuals and households that buy goods and services for personal consumption.

Business market

Organizations that buy goods and services for use in business operations or production.

Reseller market

Organizations that buy products to resell them for a profit.

Model of consumer behavior

A model showing how marketing and environmental stimuli enter the buyer's black box and produce consumer responses.

Buyer's black box

The consumer's characteristics and decision-making process that influence buying behavior.

Culture

The basic values, perceptions, wants, and behaviors learned from family and other institutions.

Subculture

A group of people who share common life experiences and situations within a larger culture.

Social class

Relatively permanent divisions in society whose members share similar values, interests, and behaviors.

Reference group

A group that serves as a point of comparison or influences a person's attitudes and behavior.

Opinion leader

A person whose knowledge or influence affects other people's purchasing decisions.

Word-of-mouth influence

Personal recommendations and conversations that influence consumer buying decisions.

Influencer marketing

Using influential people to promote products or brands to their audiences.

Roles and status

A role is expected behavior associated with a position in a group; status is the respect or rank associated with that position.

Lifestyle

A person's pattern of living expressed through activities, interests, and opinions.

Personality

The unique psychological characteristics that distinguish one person from another.

Self-concept

The way a person views themselves.

Brand personality

A set of human characteristics associated with a particular brand.

Motive

A need that is sufficiently pressing to direct a person to seek satisfaction.

Maslow's Hierarchy of Needs

A theory arranging human needs from physiological needs to safety, social, esteem, and self-actualization.

Perception

The process of selecting, organizing, and interpreting information to create a meaningful understanding of the world.

Learning

Changes in an individual's behavior resulting from experience.

Beliefs

Descriptive thoughts a person holds about something.

Attitudes

A person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Buyer decision process

The five stages consumers typically go through when deciding whether to purchase a product.

Need recognition

The stage when a consumer recognizes a problem or need.

Internal stimuli

Needs originating within a person, such as hunger or thirst.

External stimuli

Outside influences that trigger a need, such as advertising or seeing someone else's product.

Information search

The stage when a consumer looks for information about ways to satisfy a need.

Personal information sources

Information from friends, family, acquaintances, and other people.

Commercial information sources

Information from advertising, salespeople, company websites, and packaging.

Public information sources

Information from independent reviews, news reports, and consumer-rating organizations.

Experiential information sources

Information gained by examining, testing, or using a product.

Evaluation of alternatives

The stage when consumers compare products or brands based on important criteria.

Purchase decision

The stage when a consumer decides which product or brand to buy.

Postpurchase behavior

The consumer's reactions and actions after buying a product.

Cognitive dissonance

Doubt or discomfort a consumer experiences after a purchase when questioning whether the right choice was made.

Adoption process

The mental process an individual goes through from first learning about an innovation to adopting it.

Awareness

The consumer learns about a new product but lacks detailed information.

Interest

The consumer seeks more information about a new product.

Evaluation

The consumer considers whether trying a new product makes sense.

Trial

The consumer tries a new product on a limited basis.

Adoption

The consumer decides to use a new product regularly.

Innovators

The first consumers to adopt new products; they tend to be adventurous and willing to take risks.

Early adopters

Consumers who adopt innovations early and often influence others.

Early mainstream

Consumers who adopt new products after early adopters but before the average consumer.

Late mainstream

Consumers who adopt innovations after most people have tried them, often because of skepticism or practical constraints.

Lagging adopters

The last consumers to adopt innovations; they tend to be cautious and tradition-oriented.

Relative advantage

The degree to which a new product is perceived as better than existing alternatives.

Compatibility

The degree to which a new product fits consumers' existing values, experiences, and needs.

Complexity

The degree to which a new product is perceived as difficult to understand or use.

Divisibility

The degree to which a new product can be tried on a limited basis.

Communicability

The degree to which the results or benefits of a new product can be observed or described to others.

Market segmentation

Dividing a market into distinct groups of consumers with different needs, characteristics, or behaviors.

Market targeting

Evaluating market segments and selecting which ones to serve.

Differentiation

Creating meaningful differences between a company's offering and competitors' offerings.

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place in consumers' minds relative to competitors.

Geographic segmentation

Dividing a market according to location, such as country, region, city, or climate.

Demographic segmentation

Dividing a market using characteristics such as age, gender, income, education, or family size.

Age and life-cycle segmentation

Dividing consumers according to their age or stage of life.

Gender segmentation

Dividing a market based on gender-related needs or preferences.

Income segmentation

Dividing consumers according to their income levels.

Psychographic segmentation

Dividing consumers according to lifestyle, social class, or personality.

Behavioral segmentation

Dividing consumers according to their knowledge, attitudes, uses, or responses to a product.

Occasion segmentation

Dividing consumers according to when they purchase, use, or think about a product.

Benefit segmentation

Dividing consumers according to the specific benefits they seek from a product.

User status

Classifying consumers as nonusers, former users, potential users, first-time users, or regular users.

Usage rate

Classifying consumers according to how much they use a product, such as light, medium, or heavy use.

Loyalty status

Classifying consumers according to how loyal they are to a brand, store, or company.

Multiple segmentation bases

Using two or more segmentation variables together to identify specific consumer groups.

Intermarket segmentation

Identifying groups of consumers with similar needs and buying behaviors across different countries or markets.

Measurable

A segmentation requirement meaning the size, purchasing power, and characteristics of a segment can be measured.

Accessible

A segmentation requirement meaning the segment can be effectively reached and served.

Substantial

A segmentation requirement meaning the segment is large or profitable enough to serve.

Differentiable

A segmentation requirement meaning segments are distinct and respond differently to marketing programs.

Actionable

A segmentation requirement meaning the company can design and implement effective programs to serve the segment.

Segment size and growth

The current size of a market segment and how quickly it is expected to grow.

Structural attractiveness

How attractive a market segment is based on competition and forces affecting long-term profitability.

Competitors

Existing businesses competing for the same customers.

New entrants

New businesses that may enter a market and increase competition.

Substitute products

Different products or services that satisfy the same basic need.

Power of buyers

The ability of customers to influence prices, demand better quality, or negotiate favorable terms.

Power of suppliers

The ability of suppliers to influence prices, availability, or quality of resources.

Company objectives and resources

The company's goals and capabilities that determine whether a market segment is appropriate to serve.

Target market

The group of consumers a company decides to serve.

Undifferentiated marketing

Using one marketing offer for the entire market.

Differentiated marketing

Targeting multiple market segments with separate offers or marketing programs.

Concentrated marketing

Focusing on a large share of one or a few market segments.

Micromarketing

Tailoring products and marketing programs to specific local groups or individual customers.

Local marketing

Tailoring products and marketing programs to the needs of local customer groups or areas.

Individual marketing

Tailoring products and marketing programs to individual customers; also called one-to-one marketing.

Socially responsible target marketing

Targeting consumers ethically without exploiting vulnerable groups.

Product position

The way consumers define a product based on important attributes and perceive it relative to competing products.

Perceptual positioning map

A visual representation of how consumers perceive competing brands using attributes such as price and quality.

Competitive advantage

An advantage over competitors gained by providing greater customer value through lower prices or superior benefits.

Product differentiation

Distinguishing a product through features, performance, design, quality, or style.

Services differentiation

Distinguishing an offering through services such as delivery, installation, customer support, or repair.

Channels differentiation

Gaining an advantage through effective and efficient distribution and delivery to customers.

People differentiation

Gaining an advantage by hiring and training employees who provide superior service and performance.