MKT 300 Exam 2 Complete Easy Study Guide

A complete study guide for MKT 300 Exam 2 covering the marketing environment, consumer behavior, and marketing research.

Marketing Environment

Everything affecting a company’s ability to market and sell products, consisting of microenvironment and macroenvironment factors.

Microenvironment

Factors close to the company that directly affect daily business operations, such as customers, suppliers, competitors, employees, and distributors.

Macroenvironment

Larger outside forces affecting all businesses, including the economy, technology, politics/laws, culture, demographics, and the environment.

Porter’s Five Forces

A model that measures how competitive and profitable an industry is; the stronger the forces, the harder it is to make a profit.

Generic Competitors

Different products that solve the same problem, such as a movie theater versus a bowling alley.

Form Competitors

Competitors that provide the same product form, such as Pepsi versus Coke.

Industry Competitors

Companies within the same industry, such as all fast-food chains.

Brand Competitors

Very similar brands that compete directly, such as Nike versus Adidas.

Ideals-Oriented

A VALS orientation where consumers buy based on their beliefs and values.

Achievement-Oriented

A VALS orientation where consumers buy to show success or status.

Self-Expression-Oriented

A VALS orientation where consumers buy for individuality or adventure.

Positioning

How customers view a brand, such as Volvo being associated with safety.

Perceptual Maps

Charts showing how consumers compare brands, usually based on factors like price, quality, luxury, and performance.

Value Proposition

The core reason why customers should choose a product, such as "affordable high-quality coffee."

Positioning Statement

A statement that explains the target customer, market/category, benefit, and competitive advantage.

Derived Demand

Business demand that depends on consumer demand, such as more car sales leading to more tire demand.

Joint Demand

Demand for products that are used together, such as hot dogs and hot dog buns.

Straight Rebuy

A routine repeat purchase in a business market.

Modified Rebuy

A repeat business purchase with some changes.

New Task Buy

A completely new purchase for a business.

Installations

A type of business product consisting of major equipment or buildings.

Accessory Equipment

Smaller equipment or tools used in business operations.

Raw Materials

Natural or basic products used in business production.

Component Parts

Finished parts that are used within other products.

Supplies

Everyday operating items for a business.

Business Services

Maintenance and support services for businesses.

Culture

The shared values and beliefs of a society that influence consumer behavior.

Subculture

A smaller group within a larger culture.

Acculturation

The process of adapting to a new culture.

Enculturation

The process of learning one's own culture.

Reverse Acculturation

When the younger generation influences the older generation's cultural habits.

Corporate Social Responsibility (CSR)

Businesses acting ethically and socially responsible, including fair wages, donations, and sustainability efforts.

Sustainability

Meeting current needs without harming the ability of future generations to meet their needs.

Preconventional Level

An ethical development level focused on punishment and reward.

Conventional Level

An ethical development level focused on following rules and social expectations.

Postconventional Level

An ethical development level guided by personal ethics and principles.

Global Market Standardization

Using similar products and marketing strategies worldwide, such as McDonald’s global branding.

Awareness Set

The set of all brands a consumer is aware of.

Evoked / Consideration Set

The brands a consumer seriously considers during the decision process.

Acceptable Set

Brands a customer would consider.

Unacceptable Set

Brands a customer rejects.

Overlooked Set

Brands that are ignored or not noticed by the consumer.

Compensatory Model

A decision-making model where good features make up for bad features.

Non-Compensatory Model

A decision-making model where one bad feature eliminates an option.

Conjunctive Model

A model where a product must meet minimum standards to be considered.

Lexicographic Model

Selecting a product based on the most important feature.

Multi-Attribute Model

A model used to compare several features together across different options.

Primary Groups

Social groups involving close, direct relationships, such as family and close friends.

Secondary Groups

More formal and less personal social groups, such as coworkers or clubs.

Aspirational Groups

Groups that consumers want to join.

Non-Aspirational Groups

Groups that consumers actively avoid.

Selective Exposure

When consumers notice information they care about.

Selective Distortion

When consumers interpret information to fit their existing beliefs.

Selective Retention

When consumers only remember information they agree with or like.

Image-Congruence Hypothesis

The theory that consumers prefer brands that match their self-image.

Belief

What a consumer thinks is true.

Attitude

An overall feeling toward a product or brand.

Theory of Reasoned Action (TORA)

A theory stating behavioral intention ($BI$) is influenced by attitudes towards the act ($A_{act}$) and social norms ($SN$), represented by the formula $BI = A_{act} + SN$.

Central Route Processing

When a consumer carefully analyzes information during the decision-making process.

Peripheral Route Processing

When a consumer is influenced by simple cues, such as celebrity endorsements, music, or appearance.

Descriptive Research

Marketing research that describes what is currently happening.

Diagnostic Research

Marketing research that explains why something happened.

Consumer Insight

A deep understanding of customer behavior and motivation.

Reliability

The consistency of measurements or results.

Validity

The accuracy of measurements.

Representativeness

The degree to which a sample accurately reflects the population.

Primary Data

Data collected firsthand through surveys, interviews, or focus groups.

Secondary Data

Data that already exists, such as census data, reports, or articles.

Exploratory Research

Research conducted to learn about a problem.

Explanatory Research

Research conducted to explain why something happens.

Ethnographic Research

A method where researchers observe consumers in real-life settings, such as watching shoppers in stores.

Ordinal Scale

A measurement scale used for rank or order only, such as 1st place and 2nd place.

Ratio Scale

A measurement scale consisting of true numbers with a meaningful zero, such as age, income, or weight.

Likert Scale

A closed-ended question format ranging from "strongly agree" to "strongly disagree."

Semantic Differential

A measurement scale using opposite adjectives, such as good/bad or easy/hard.

Cluster Sampling

A sampling plan where random groups are selected.

Stratified Sampling

A sampling plan where the population is divided into groups first.

Quota Sampling

A sampling plan utilizing a fixed amount from specific categories.

Snowball Sampling

A sampling plan where participants recruit others.

Judgment Sampling

A sampling plan where the researcher handpicks participants.

Key Performance Indicators (KPIs)

Metrics used to measure success, such as sales, profit, and market share.

Brand Development Index (BDI) / Category Development Index (CDI)

Indices used to compare the percentage of population versus the percentage of product consumption, where a value of $100$ is expected.

Contract Manufacturing

When one company makes a product for another company.