Marketing Exam 2 Melissa Moore

consumer buyer behavior

buying behavior of final consumers

consumer market

all the individuals and households that buy or acquire goods and services for personal consumption

buyer decision process

need recognition

information search

evaluation of alternatives

purchase decision

postpurchase behavior

need recognition

when a buyer becomes aware of a difference between a desired state and an actual condition

information search internal

buyers search memories for information about products that might solve the problem

information search external

when an internal search is not sufficient, consumers seek additional information from outside sources

consideration set

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

purchase stage

chooses the product, selects seller, negotiates terms, makes actual purchase or terminates process

post-purchase evaluation

after purchase the buyer evaluates the product

cognitive dissonance

a buyer's doubts shortly after a purchase about whether the decision was the right one

stages in the adoption process

1. awareness

2. interest

3. evaluation

4. trial

5. adoption

awareness

buyer becomes aware of product

interest

buyer seeks info

evaluation

considers products benefits

trial

examines and tests product

adoption

buyer buys product with expectations to use it again

characteristics influencing rate of adoption

relative advantage

compatibility

complexity

divisibility

communicability

culture

set of basic values perceptions wants and behaviors learned by an individual from family and other important institutions

culture stems from

values

language

myths

customs

rituals

laws

material artifacts

subculture

group of people with shared value systems based on common life experiences and situations

cross cultural marketing

including ethnic themes and cross-cultural perspectives within a brands mainstream marketing

social class

relatively permanent and ordered divisions in society whose members share similar values, interests, and behaviors

upper class

3 percent social elite

middle class

44 percent professionals and average pay

working class

38 percent

lower class

16 percent poor

social factors

groups

word of mouth

opinion leader

social networks

family

roles and status

personal factors

age and life cycle stage

occupation

economic situation

lifestyle

personality

lifestyle

individuals pattern of living expressed through activities interests and opinions

psychological factors

motivation

perception

learning

beliefs and attitudes

perception

selecting organizing and interpreting information to product meaning

selective exposure

an individual selects inputs usually relating to strongest needs will reach awareness

selective distortion

changing or twisting received info

selective retention

remembering info inputs that support person feelings and beliefs and forgetting inputs that do not

learning

changes in an individuals though processes and behavior cause by info and experience

attitudes

an individuals enduring evaluation of feelings about and behavioral tendencies toward an object or idea

business buying process

determining which products and services an organization needs to purchase

supplier development

systematic development of networks of supplier-partners

straight rebuy

buyer routinely reorders something without any modifications

modified rebuy

buyer wants to modify product specifications prices terms or suppliers

new task

buying situation where the buyer purchases a product or service for the first time

buying cent

all the individuals and units that play a role in the purchase decision making process

marketing segmentation

dividing a market into distinct groups of buyers who have different needs characteristics or behaviors and who might require separate products or marketing programs

market segment

group of consumers who respond in a similar way to a given set of marketing efforts

geographic segementation

nations regions states

demographic segmentation

age, life cycle, gender, income

psychographic segmentation

social class, lifestyle, personality

behavioral segmentation

occasions, benefits, user status, loyalty status

baby boomers

78 million

generation x

49 million

generation y

83 million

generation z

born after 2000

values attitudes and lifestyles

VALS- classifies consumers based on psychological characteristics that are correlated with purchase behavior and key demographics

occasion segmentation

divided according to occasions

benefit segmentation

divided according to benefits

user status

markets can be segmented into nonusers, ex-users, potential users, and regular users

usage rate

light medium and heavy users

loyalty status

consumers loyal to brands, stores, and companies

effective segmentation

measurable, accessible, substantial, differentiable, actionable

concentrated targeting

Targeting a single market segment using one marketing mix

competitive advantage

an advantage over competitors gained by offering greater customer value

product posistion

How a product is defined by consumers on important attributes—the place a product occupies in consumers' minds relative to competing products.

perceptual map

created by questioning a sample of consumers about their perception of products, brands, and organizations with respect to two or more dimensions

positioning statement

summarizes company or brand posistioning

market offering

both tangible goods and services

consumer products

bought by consumers for personal consumption

industrial products

bought by individuals and organizations for further processing or for use in conducting a business

brand

A name, term, design, symbol, or other feature that identifies the marketer's product as distinct from those of other marketers

brand name

the name of the brand that can be spoken

brand mark

the part of the brand that is not made up of words

trademark

a legal designation of exclusive use of the brand

packaging and labeling

very important when catching a consumers eye

5 determinants of service quality

reliability, responsiveness, assurance, empathy, tangibles

CREST method

C: calm the customer

R: repeat the problem

E: empathy statements

S: solve the problem

T: timely response

product line

closely related products that have similar functions, sold to similar groups or outlets, or are in a given price range

product line length

# of items in the product line

filling (present range)

stretching (beyond the range)

product mix

set of all product lines and items that a particular seller offers for sell

width- number of diff lines

length- total number of lines

depth-number of versions for each product in the line

intangibility

services that cant be seen, tasted, felt, or heard before purchase

inseperability

services cant be separated from their providers

variability

quality depends on who where when and how

perishability

services can not be stored for later sale or use

brand equity

The differential effect that knowing the brand name has on customer response to the product or its marketing

brand positioning

Marketers should establish a mission and vision for the brand when positioning it.

brand name selection

Desirable qualities for a brand name should:

Be based on the product's benefits and qualities

Be easy to pronounce, recognize, and remember

Be distinctive and extendable

Translate easily into foreign languages

Be capable of registration and legal protection

national brand sponsorship

marketed under manufacturers own name

store brand sponsorship

created and owned by a reseller of a product or service

licensing

use names and symbols created by other companies or well known movie characters or celebrities for a fee

co-branding

use the established brand names of two different companies on the same product

line extension

existing brand name and product category

brand extension

existing brand name new product

mulitbrands

new brand name same product

new brands

new brand name new product

crowdsourcing

Inviting broad communities of people into the new product innovation process

idea screening

screening new ideas and keeping only the good ones

product idea

idea for a possible product that company can see itself offering

product concept

detailed version of product idea

product image

way product is perceived by customers

concept development

Developing a new product into alternative product concepts

concept testing

Testing a group of target consumers to find out the degree of consumer appeal toward the concepts

business analysis

Review of the sales, costs, and profit projections for a new product