Test 2 MKT 300, Jim Karrh, University of Alabama, Fall 2023

What are the five (potential) steps of the consumer's decision-making process?

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase

Post purchase evaluation

What are the three major categories of influence on the decision-making process?

Situational

Psychological

Social

What happens when a customer decides to conduct a Information Search

They will decide to either use a Internal Search or External Search

Internal Search

An information search in which buyers search their

memories for information about products that might solve their problem

External Search

An information search in which buyers seek information from sources other than their memories

Evoked Set

the brands or products that first come to mind, in response to some prompt or need

Consideration set

A group of brands within a product category that a buyer views as alternatives for possible purchase

Evaluative criteria

Objective and subjective product characteristics that are important to a buyer

What is buyer's remorse?

Feeling regret or concern after making a large purchase

What are the three types of consumer decision making?

Routinized Response Behavior

Limited Decision Making

Extended Decision Making

Perception

The process of selecting, organizing, and interpreting information inputs to produce meaning

Information inputs

Sensations received through sight, taste, hearing, smell, and touch

Selective exposure

The process by which some inputs are selected to reach awareness and others are not

The selective nature of perception may result in two conditions:

Selective distortion and Selective retention

Selective distortion

An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs

Selective retention

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

What are the three steps to the election process?

Selection

Perceptual Organization

Interpretation

Motivation

The inner driving forces or reasons behind an individual's actions and behaviors

Maslow's hierarchy of needs

The five levels of needs that humans seek to satisfy, from most to least important

What are Maslow's 5 levels hierarchy of needs

Self-actualization needs

Esteem needs

Social needs

Safety needs

Physiological needs

Social Proof

What two elements that must be present with social proof to make it really powerful?

Multiple and Similar others

Business Market

also called a business-to- business market or B2B market

What are three purposes a business market serve

Resale

Direct use in using other products

Use in general daily operations

Buying center

The people within an organization who make business purchase decisions

Users(Buying center)

Organizational members who frequently initiate the purchase process and/or generate purchase specifications, use the product, and evaluate performance relative to specifications

Influencers(Buying center)

Technical personnel who help develop product specifications and evaluate alternatives

Buyers

Select suppliers and negotiate terms of purchase and may also be involved in developing

specifications ("initiators")

Deciders

Actually choose the products

Gatekeepers

Control the flow of information to and among the different roles in the buying center

Why is it a good choice for US-brands to expand their markets overseas?

96% of the world's population and two-thirds of total purchasing power are outside the US - big

opportunities to export goods and services

What are three benefits of going global

Expand the customer base

Reduce risks and dependencies

Extend product life cycles

Import Tariff

A duty levied by a nation on goods bought outside its borders and brought

into the country

Quota

A limit on the amount of goods an importing country will accept for certain product

categories in a specific period of time

Embargo

A government's suspension of trade in a particular product or with a given

country

What are some risks of going global?

Technology to support international expansion

Cultural and language differences

International financing, tariffs, embargoes

Foreign Corrupt Practices Act (FCPA) of 1977

Makes it illegal for U.S. firms to attempt to make large payments or bribes to influence policy decisions of foreign governments

What are the main trade alliances?

United States-Canada-Mexico Agreement

European Union

MERCOSUR

APEC

Southern Common Market (MERCOSUR)

An alliance that promotes the free circulation of goods,

services, and production factors, and has a common external tariff and commercial policy among

member nations in South America

Asia-Pacific Economic Cooperation (APEC)

An alliance that promotes open trade and economic

and technical cooperation among member nations throughout the world

Trading Companies

Put buyers and sellers from different countries together and handle export/import arrangements, documentation and transportation.

Contract Manufacturing

Having a foreign firm produce some specific volume of your product, according to your specifications

Joint Ventures

are deeper partnerships between a domestic firm and a foreign firm or government

Globalization or Standardization:

The development of marketing strategies that treat the entire

world (or its major regions) as a single entity

What are the benefits and opportunities in digital marketing?

New opportunities to interact with consumers

Target more precisely

Shorten the purchase cycle

First-party cookies

created by the same website the user is visiting. They collect data such as language and payment method preferences, form information like username and password, products stored in the cart, etc.

Third-party cookies

created by a domain other than the one the user is visiting. They are generally used for marketing and advertising purposes

Digital media

Electronic media that function using digital codes; media available via computers, cellular phones, smartphones, and other digital devices that have been released in recent years

Digital marketing

Using all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers

Electronic marketing (e-marketing)

The strategic process of pricing, distributing, and promoting products, and discovering the desires of customers using digital media and digital marketing

Addressability

The ability of the marketer to identify customers before they make a purchase

What is an example of Addressability?

Amazon installs cookies on a user's computer that allow the company to identify the user when the user returns to the website

Interactivity

The ability of customers to express their needs and wants directly to the firm in response to its communications

What is an example of Interactivity?

Texas Instruments interacts with its customers on its Facebook page by answering concerns and posting updates

Accessibility

The ability for marketers to obtain digital information

What is an example of Accessibility?

Google can use web searches done through its search engine to learn about customer interests

Connectivity

The ability for consumers to be connected with marketers along with other consumers

What is an example of Connectivity?

Mary Kay offers users the opportunity to sign up for MyMK, a system that connects customers with beauty consultants and allows them to develop their own personalized space

Control

The customer's ability to regulate the information they view as well as the rate and exposure to that information

What is an example of Control?

Consumers use Kayak.com to discover the best travel deals

What are the two primary reasons that "consumer-generated" digital information is increasingly important

Consumers want to be "publishers" too

Consumers tend to trust other consumers over corporations

Programmatic Ad Buying

the use of software to buy digital advertising

Cross-Device Targeting

delivering advertising to consumers across their multiple platforms and devices

Deterministic approach

uses unique identifier to determine that two or more devices are being used by the same person (email, login credential, etc.)

Probabilistic approach

Hypothesis that a certain individual is probably using specific devices

Which of the following is the least accurate between deterministic and probabilistic approach?

Propbabilitic

What are the three components of the total value of a product

core

supplemental beliefs

symbolic/experiential

product line

a group of closely related product items

product mix

The total group of products that an organization makes available to customers

width of product mix

how many product lines to offer

depth of product mix

how many individual product items to offer within each line

product line extension

New product, same category, the "extension" is typically quite similar existing products under the same brand (variant of original product)

What are the four stages of the product life cycle?

Intro

Growth

Maturity

Decline

What are the five categories of "product adopters"

innovators

early adopters

early majority

late majority

laggards

Brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

Trademark

A brand that has exclusive legal protection for both its brand name and its design

What are the 3 major types of product modifications that managers consider

Quality

Functional

Aesthetic

Quality Modifications

Changes relating to a product's dependability and durabilitySmartphones are being made waterproof in case of accidents

Functional Modifications

Changes affecting a product's versatility, effectiveness, convenience, or safetyKraft begins changing the packaging of its snack foods to make them easier for elderly customers to open

Aesthetic Modifications

Changes to the sensory appeal of a productGap introduces a popular summer T-shirt in a new color

Factors in a test market

Test marketing is expensive, and competitors may try to interfere ("jam") by:-Increasing their own advertising or promotions-Lowering prices-Offering special incentives-Copying the product in the testing stage and rushing to introduce a similar product

Product Deletion

Eliminating a product from the product mix

cross-functional "venture teams"

groups consisting of people from different functional areas of the company