Comprehensive Marketing and Consumer Behavior: 4Ps, SWOT, Growth Strategies, Segmentation, and Research

In the marketing mix, which of the 4Ps is responsible for creating value?

Product.

Which of the 4Ps in the marketing mix focuses on capturing value?

Price.

The 'Place' component of the marketing mix is responsible for what function?

Delivering value.

Communicating value to the customer is the primary function of which element of the marketing mix?

Promotion.

What is a sustainable competitive advantage (SCA)?

An advantage over the competition that is not easily copied and can be maintained over a long period of time.

Providing outstanding customer service is a strategy to maintain SCA known as _____ excellence.

customer

What is operational excellence as a strategy for maintaining a sustainable competitive advantage?

It is achieved through efficient operations.

Developing products with high perceived value is the core of which SCA maintenance strategy?

Product excellence.

Having a strong physical location and/or internet presence is known as _____ excellence.

locational

In a SWOT analysis, which two components are considered internal factors?

Strengths and Weaknesses.

In a SWOT analysis, Opportunities and Threats are classified as what type of factors?

External.

Which growth strategy involves an existing product or service in current markets?

Market Penetration.

The growth strategy of offering an existing product or service to new markets is called what?

Market Development.

What growth strategy introduces a new product or service to a firm's current markets?

Product Development.

Which growth strategy, considered the riskiest, involves a new product or service in a new market?

Diversification.

What is related diversification?

A diversification strategy where the new opportunity shares something in common with the current target market and/or marketing mix.

In the immediate environment, what are 'company capabilities'?

The core competencies of a firm that it leans into for successful marketing.

What is the first step in the Consumer Decision Process?

Need Recognition.

After recognizing a need, what is the second step a consumer takes in the decision process?

Information Search.

What is the third stage of the Consumer Decision Process, following the information search?

Alternative Evaluation.

What is the fourth step of the Consumer Decision Process?

Purchase & Consumption.

The final stage of the Consumer Decision Process, occurring after the purchase, is known as _____.

Post Purchase

What type of consumer risk involves the fear that a product or service will not perform as expected?

Performance risk.

The risk associated with a monetary outlay, including the initial cost and costs of using the item, is known as _____ risk.

financial

What is social risk in the context of consumer decisions?

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

The risk associated with the fear of an actual harm should a product not perform properly is called _____ risk.

physiological

What consumer risk involves the fear that a product or service will not convey the right image?

Psychological risk.

A consumer who trades off good and bad characteristics of alternatives is using a _____ decision rule.

compensatory

What is a non-compensatory decision rule?

A rule where a consumer chooses a product or service based on one characteristic, regardless of the values of other attributes.

_____ segmentation groups consumers according to easily measured, objective characteristics like age, gender, and income.

Demographic

Why is demographic segmentation the most common method for defining segments?

Because the characteristics are easy to identify.

Which type of segmentation organizes customers into groups based on where they live?

Geographic segmentation.

What is the term for the strategy of creating groups of repeat customers to encourage repeat purchasing?

Loyalty segmentation.

To be attractive, a market segment must be _____, meaning the firm can identify who is within their market.

identifiable

What does it mean for an attractive market segment to be 'substantial'?

It must be large enough to be worth pursuing.

The 'reachable' criterion for segment attractiveness means the market can be reached or accessed through what?

Persuasive communications and product distribution.

What does the 'responsive' criterion for segment attractiveness mean?

The customers in the segment must react similarly and positively to the firm's offering.

For a segment to be attractive, it must be _____, meaning it can generate sufficient profits.

profitable

What is secondary data in market research?

Data collected prior to the start of the research project, sourced both internally and externally.

What is a primary advantage of using secondary data for research?

It is readily accessible.

A major disadvantage of _____ data is that it may not be specific or timely enough to meet research objectives.

secondary

What is primary data in market research?

Data collected to address specific research needs through methods like focus groups and surveys.

What is the main advantage of using primary data?

It is designed to specifically address the research questions.

What are the main disadvantages of collecting primary data?

It is expensive and time-consuming.

Research that involves structured responses that can be statistically tested is known as _____ research.

quantitative

What type of research uses broad, open-ended questions to understand a phenomenon of interest?

Qualitative research.

In product complexity, what is the 'actual product'?

The literal and tangible aspect of the product.

What are 'associated services' in the context of product complexity?

The intangible and supportive services of the actual product.

A firm's product mix _____ is the number of different product lines it offers.

breadth

What does the 'depth' of a product mix refer to?

The number of different offerings within a single product line.

Brands that are owned and managed by manufacturers are known as what?

National brands.

What are private label brands?

Products developed by and sold by retailers, also known as store brands.

What is the 'diffusion of innovation'?

The process by which the use of an innovation spreads throughout a market group over time.

The diffusion of innovation curve typically follows what shape?

A bell-shaped curve.

What tool defines the stages products move through as they enter, get established in, and leave the marketplace?

The product life cycle.

What are the five stages of the product life cycle, based on sales over time?

Development, introduction, growth, maturity, and decline.

What is a 'service' in a marketing context?

An intangible offering that involves a deed, performance, or effort that cannot be physically possessed.

One of the defining attributes of a service is that it is _____, meaning it cannot be touched, tasted, or seen.

intangible

What does the 'inseparable' attribute of a service mean?

It is produced and consumed at the same time.

The _____ attribute of a service refers to the variability in the service's quality.

heterogeneous

What does it mean for a service to be 'perishable'?

It cannot be stored for use in the future.

In service recovery, what is distributive fairness?

A customer’s perception of the benefits he or she received compared with the costs or loss.

What is procedural fairness in service recovery?

The perceived fairness of the process used to resolve customer complaints.

For complementary products, how is demand correlated?

Demand is positively correlated.

How is the demand for substitute products related?

Demand is inversely related.

What is the sequence of the communication process model?

Sender â†' Transmitter â†' Communication Channel â†' Receiver.

What do the letters in the AIDA model stand for?

Awareness, Interest, Desire, Action.

When a consumer recognizes a brand only after its name is presented to them, it is known as _____ recall.

aided

What is top-of-mind awareness?

A high level of awareness where a consumer mentions a specific brand before all others for a product or service.

In marketing communications, what is 'lift'?

The incremental increase in sales.

Advertisements that inform, persuade, or remind consumers about a specific good or service are known as _____ advertisements.

product-focused

What is the purpose of an institutional advertisement?

To promote a company, corporation, business, or institution to improve public perception.

A public service advertisement (PSA) is designed to achieve what goal?

To raise awareness of public welfare issues.

Appeals that are cognitive and persuade using rational thought and factual information are known as _____ appeals.

informational

What is the focus of an emotional appeal in advertising?

It persuades by triggering an emotional response and focuses on feelings about the self.

Which marketing communication method offers full control over the message and its placement?

Advertising.

Compared to advertising, public relations is generally seen as more _____ because the message is often delivered by a third party.

credible

What is personal selling?

A two-way flow of communication between a buyer and a seller, designed to influence a buyer’s purchase decision.

What is the first step in the personal selling process?

Generate & qualify leads.

After generating leads, what is the second stage in the personal selling process?

Pre-approach.

The third step in the personal selling process is the sales presentation and ____ ____.

overcoming reservations

After the sales presentation, what is the fourth step in the personal selling process?

Closing the sale.

What is the final step in the personal selling process?

Follow-up.

What type of marketing channel has no intermediaries between the buyer and seller?

A direct marketing channel.

A(n) _____ marketing channel is one where one or more intermediaries work with manufacturers to provide goods to customers.

indirect

What is reward power in a marketing channel?

The power to offer rewards, like a monetary incentive, for compliance.

Coercive power in a marketing channel arises when a business threatens to do what?

Punish channel members for noncompliance.

When a supplier wants to be associated with a business to attract other retailers, the business is exercising _____ power.

referent

What is expertise power in a marketing channel context?

Power that relies on a firm's vast experience and knowledge.

A business that possesses a vast amount of data about consumers is said to have _____ power.

information

What is legitimate power in a marketing channel?

The power to get a channel member to behave in a certain way because of a contractual agreement.

What is franchising as a global entry strategy?

A contractual agreement between a franchisor and a franchisee.

What is Gross Domestic Product (GDP)?

The market value of the goods and services produced by a country in a year.

How is Gross National Income (GNI) calculated?

It is the GDP plus the net income earned from investments abroad.