Marketing CE Test #2

Consumer behavior

the decision-making process used to select, purchase, use, and dispose of items that fit their wants and needs

Consideration set

the smaller number of products that the customer seriously considers for purchase

Evaluative criteria

important attributes or features that customers use to choose between products

Heuristic

a mental shortcut or "rule of thumb"

Compensatory decision rules

carefully compare and contrast options in the consideration set using various evaluative criteria

Cognitive dissonance

the emotional distress that buyers feel after making a purchase (buyer's remorse)

Motivation

internal drive to satisfy needs that are important at the time

Maslow's Hierarchy of Needs

all humans are motivated by a hierarchy of needs from more basic ones to more complex ones

Perception

the process by which individuals interpret stimuli into a meaningful picture of the world

Selective attention

screening out information

Selective distortion

interpreting of information in ways that support prior beliefs

Selective retention

retaining points that support pre-existing attitudes

Personality

individual differences in consistent patterns of thinking, feeling, and behaving

Situational influences

sensory cues in the environment that impact our consumption choices

Reference groups

groups of people whose presumed beliefs and values impact our own beliefs and values

Direct groups

groups that you are a member of

Aspirational groups

groups that you are not a part of, but aspire to be like

Dissociative groups

groups that you are not part of and try to distance yourself from

Culture

groups of people that share beliefs, values, norms, etc.

Rituals

patterns of behavior tied to events that we consider important in our lives

Special ritual

happens usually only once in a person's lifetime

Common ritual

a ritual that is repeated by someone many times

Core product

the benefits that the buyer wants

Actual product

tangible, physical product

Augmented product

additional services and benefits that are not part of the actual product

Convenience good

frequently purchased, inexpensive item that is widely distributed

Shopping good

relatively infrequently purchased, usually more expensive and requires some comparison

Specialty good

infrequently purchased and requires extensive search and decision time

Unsought good

products that consumers do not seek out and sometimes don't know about

Product concept development

refining initial ideas, describing features and benefits

Technical development

producing a prototype of the product

Test marketing

test the complete product and marketing strategy in a smaller geographic area

Product line

a group of closely related products sold by the same company

Product mix

the total set of products a firm offers for sale

Line stretching

add more or less expensive versions of what you already offer

Line filling

adding more items for variety

Bidirectional stretch

consists of both a downward and upward stretch

Cannibalization

introduction of a new product eats into the sales of an existing product

Consolidated

very few players in the market

Fragmented

lots of players in the market

Brand

a unique element of a product that identifies one firm's product and sets it apart from the competition

Distinctive brand assets

elements that trigger the memory of a brand without mentioning the brand name

National/Manufacturer's Brand

brand name is owned by the company that makes the product

Store/Private Brand

brand name is owned by a wholesaler or retailer; they contract to make the product

Brand equity

the value of a brand over and above the value of the generic version of the product

Brand architecture

the way a firm's brands are organized and how they relate to each other

Brand extension

taking an existing brand into a new product category

Prototypical brand

closely related to a product category