Mktg 300 Exam 2 CSULB

What is marketing research?

the process of defining a marketing problem and opportunity, systematically collecting and analyzing data, and recommending actions

What are the three roles of marketing research?

Descriptive (gathering and presenting facts), Diagnostic (explaining data), Predictive (making predictions).

What are the steps in conducting market research?

1. define the problem/opportunity (what do you want to find out?)

2. collect primary data

3. analyze the data

4. choose the best solution

What is the difference between primary and secondary data?

Primary data is specifically gathered for the current research, while secondary data is already readily available.

What is qualitative research?

Research that deals with non-numerical data and is exploratory in nature.

What is quantitative research?

Research that is confirmatory in nature, hypothesis-based, and requires a significant sample size.

What is ethnographic research?

A form of observation research conducted in consumers' natural habitat.

What are some forms of research design for primary data.

Surveys, executive interviews, and focus groups.

What are probability samples?

random samples

What are nonprobability samples?

Convenience samples

What are measurement errors in market research?

Errors that occur when respondents are not truthful or do not understand the questions.

What are sampling errors?

Errors that occur when the sample does not represent the target population.

What are random errors?

Differences between the sample's mean and the population mean.

What are the pros of internet surveys?

Quick, easy, convenient, inexpensive, and improved participation rates.

What are the cons of internet surveys?

Self-selection bias (sampling error), lack of truthfulness (measurement error), and inattentiveness (random error).

What are the four types of consumer products?

Convenience, shopping, specialty, and unsought products.

What are convenience products?

Products bought frequently and immediately. (ex: toilet paper)

What are shopping products?

Products bought less frequently and with more research effort. (ex: fridge)

What are specialty products?

Products with special purchase effort and unique characteristics. (ex: Rolex)

What are unsought products?

Products consumers don't want to think about or don't know exist. (ex: life insurance)

Jasmine stopped by a gas station and bought a pack of donuts. What type of product?

Convenience

Product Item

Singular product (ex: can of Coke)

Product Line

A group of closely related products (ex: diet coke, cherry coke, coke zero)

Product Mix

Includes all the products sold by the company (ex: coke, Fanta, hi-c, Sprite)

Product Mix Width

Number of product lines a company offers (ex: Campbell's makes soups, sauces, frozen items, and beverages)

Product Line Depth

Number of product items in a product line (ex: Mushroom soup, vegetable soup, tomato soup)

What are the product adjustment strategies?

Product modification, product line extension, and product line contraction

Product Modification

Changes in quality, functionality, or style

Product Line Extension

Add new products to an existing product line

Product Line Contractions

Terminate unsuccessful line extensions

What is design thinking?

Consumer-centered approach bridging gap between designers thinking and consumers needs.

Brand Name

that part of a brand that can be spoken, including letters, words, and numbers

Brand Mark

the elements of a brand that cannot be spoken

Brand Equity

The value of a brand

What are the benefits of branding?

Product identification, repeat sales, new product sales.

What are the two branding strategies?

Manufacturer's brands and private brands

Family Branding

All products have the same branding (ex: Apple)

Individual Branding

Different products have different branding (ex: P&G makes Pampers, Oral-B, Olay, Gillette)

Co-Branding

Collaboration product with multiple branding

Trade Marks

The exclusive right to use a brand or part of a brand

What are the functions of packaging?

Contains and protects product; promotes product; facilitates storage & convenience

Types of labeling

Informational labeling (back label) and persuasive labeling (front label)

Express Warranty

A written guarantee (ex: mattresses, cars)

Implied Warranty

An unwritten guarantee that the good/service works as promised

What are the categories of new products?

New-to-the-world products (ex: drones), New product lines (ex: electric cars), Line extensions, Improvements/revisions, Repositioned products (company promotes the product in a new way).

What are the stages in the New Product Development Process?

1. New Product Strategy, 2. Idea Generation, 3. Idea Screening, 4. Business Analysis, 5. Development, 6. Test Marketing, 7. Commercialization (national launch).

Who are the INNOVATORS (diffusion of innovation)?

The first segment to buy a new product (typically younger nonconformists)

Who are EARLY ADOPTERS (diffusion of innovation)?

second segment to get a product, prime market for marketers (similar to innovators except they spread word-of-mouth)

What is "The Chasm"?

Gap between early market and mainstream market.

Who are the EARLY MAJORITY (diffusion of innovation)?

3rd segment, Waits for more info before buying. (typically older)

Who are the LATE MAJORITY (diffusion of innovation)?

4th segment, Buys product long after launch, often due to peer pressure.

Who are the LAGGARDS (diffusion of innovation)?

Last segment, may never purchase new product (typically older or low income)

What factors affect the adoption rate of new products?

Complexity (ease of use), Relative Advantage (how much better the product is than existing ones), Observability (visibility of benefits), Trialability (ability to test the product risk-free), and Compatibility (alignment with consumer lifestyles)

What is the Product Life Cycle?

introduction (first launch), growth, maturity (market is saturated), decline

What are the two options for a product in the Decline Stage?

1. Divesting: discontinuing the product, 2. Harvesting: maintaining the technology but marketing it as a niche product.

What are the four unique characteristics of services?

Perishability, intangibility, heterogeneity, and inseparability.

What are the five dimensions of service quality?

Reliability, responsiveness, assurance, empathy, tangibles.

What is the Service Gap Model?

It identifies the root causes of service problems by comparing customer expectations with management's understanding and actual service delivery.

What are the core and supplementary services?

Core Services are the fundamental offerings customers seek (ex: a hotel provides a bed), while Supplementary Services enhance the customer experience (ex: valet service).

What is the difference between customization and standardization?

Customization tailors to individual needs; standardization aims for consistency.

What are the four levels of relationship marketing in services?

Financial (points/cash-back), social (birthday rewards), customization, and structural (hardest to walk away from).

What are the classifications of retail operations based on ownership?

Independent, chain, franchise.

What are the classifications of retail operations based on level of service?

Full service, self service.

What are the classifications of retail operations based on product assortment?

Specialty stores vs full line (Walmart)

What are the classifications of retail operations based on price?

Full price vs discounters/outlets

Types of in-store retail operations

-department stores

-specialty stores

-supermarkets

-drugstores

-convenience stores

-discount stores

Types of nonstore retailing

-vending machines

-direct mail & catalogs

-TV home shopping,

-online shopping

What are the components of the Retail Mix?

1. Product, 2. Promotion, 3. Place (Location), 4. Price, 5. Presentation, 6. Personnel.

Benefits to e-tailing (online) vs. brick-n-mortar (physical) retailing

E-tailing: convenience, global reach

Brick-n-mortar: physical experience, immediate gratification