Marketing Exam 2 Study Guide: Chapters 6, 7, and 8

Comprehensive vocabulary flashcards covering Consumer Behavior, B2B Marketing, and Global Marketing based on Chapters 6, 7, and 8 study materials.

Consumer Decision Process

The five-stage process consumers follow: 1. Need Recognition, 2. Information Search, 3. Alternative Evaluation, 4. Purchase and Consumption, and 5. Post-Purchase.

Functional Needs

Needs that pertain to the performance of a product or service, such as a BMW motorcycle providing transportation.

Psychological Needs

Needs related to personal gratification and the image consumers seek from a product or service, exemplified by Jimmy Choo shoes.

Internal Search

A type of information search where the buyer examines their own memory and knowledge about the product or service, gathered through past experiences.

External Search

A type of information search occurring when the buyer seeks information outside their personal knowledge base to help make the buying decision, such as reviews or recommendations.

Performance Risk

The perceived danger inherent in a poorly performing product or service.

Financial Risk

Risk associated with a monetary outlay and includes the initial cost of the purchase as well as the costs of using the item or service.

Social Risk

The fears that consumers suffer when they worry others might not regard their purchases positively.

Physiological Risk

Also known as safety risk; the fear of actual physical harm should a product not perform properly.

Psychological Risk

Risks associated with the way people will feel if the product or service does not convey the right image.

Attribute Sets (Universal, Retrieval, Evoked)

Universal sets include all possible choices for a product category; Retrieval sets are brands easily recalled from memory; Evoked sets are the brands a customer would actually consider purchasing.

Determinant Attributes

Product features that are important to the buyer and on which competing brands or stores are perceived to differ; often known as "must-have" features.

Compensatory Decision Rule

A rule at work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones.

Conversion Rate

A measure used by retailers to determine how well they convert purchase intentions into actual purchases.

Post-Purchase Cognitive Dissonance

The internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior, commonly known as buyer's remorse.

Maslow's Hierarchy of Needs

A paradigm for classifying people's motives into five categories: Physiological, Safety, Love, Esteem, and Self-actualization.

Elaboration Likelihood Model

A model that distinguishes between high-involvement (deep processing and strong attitudes) and low-involvement (peripheral processing and weak attitudes) consumers.

Extended Problem Solving

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives, typically used for high-involvement products like cars.

Habitual Decision Making

A purchase decision process in which consumers engage with little conscious effort, such as the $78\%$ of Americans who automatically turn right upon entering a grocery store.

Resellers

Marketing intermediaries that resell manufactured products without significantly altering their form, such as wholesalers and distributors.

Request for Proposals (RFP)

A common process in Stage $3$ of B2B buying through which organizations invite alternative suppliers to bid on supplying their required components or specifications.

Buying Center

The group of people typically responsible for the buying decisions in a large organization, including the Initiator, Influencer, Decider, Buyer, User, and Gatekeeper.

Gatekeeper

The buying center participant who controls information or access to decision makers and influencers, such as administrative assistants or secretaries.

Organizational Culture Types

The set of values and traditions guiding behavior: Autocratic (one person decides), Democratic (majority rules), Consultative (one decides after input), and Consensus (everyone must agree).

New Buy

A B2B buying situation where a customer purchases a product or service for the first time, requiring the completion of all $6$ stages of the buying process.

Modified Rebuy

A B2B buying situation where the buyer has purchased a similar product in the past but has decided to change specifications such as price, quality, or features.

Straight Rebuy

A B2B buying situation where the buyer simply buys additional units of products previously purchased, often skipping to Stage $5$ (Order Specification).

Gross National Income (GNI)

A metric consisting of GDP plus the net income earned from investments abroad; it is considered more accurate for global trade assessment than GDP alone.

Purchasing Power Parity (PPP)

A theory that states that if the exchange rates of two countries are in equilibrium, a product purchased in one will cost the same in the other when expressed in the same currency.

Bottom of the Pyramid

A term for the market of consumers who earn very low wages and require specially adapted, lower-priced products.

Tariff (Duty)

A tax levied on a good imported into a country which artificially raises prices to protect domestic products.

Quota

A limit on the maximum quantity of a product that may be brought into a country during a specified time period.

Hofstede's Cultural Dimensions

A framework for sociocultural analysis including Power Distance, Uncertainty Avoidance, Individualism, Masculinity, Time Orientation, and Indulgence.

BRICS Countries

The five countries with the greatest potential for global expansion: Brazil, Russia, India, China, and South Africa.

Exporting

A global entry strategy that involves the least risk and least control by producing goods in one country and selling them in another.

Strategic Alliance

A collaborative relationship between independent firms that do not create an equity partnership or invest in one another.

Joint Venture

A global entry strategy where a firm entering a new market pools its resources with a local firm to form a new company with shared ownership and profits.

Direct Investment

A global entry strategy that requires the highest risk and highest control, where a firm maintains $100\%$ ownership of its facilities in a foreign country.

Glocalization

A strategy where firms standardize their products globally but adapt them slightly for local markets, or use different promotional campaigns.