Principles of Marketing Test 2- msstate- Melissa Moore

consumer buying behavior

buying behavior of final customers

model of buying behavior

the environment, buyer's black box, buyer responses

model of buying behavior is a _______________ response model

stimulus

buyers black box

buyers characteristics and buyers decision process

factors influencing consumer behavior

1. cultural
2. societal
3. personal
4. psychiological

culture

set of basic values and behaviors learned by individuals from experience

culture stems from

values, language, myths, customs, rituals, laws, material artifacts

subculture

group of people with shared values and common life situations

social class

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

upper class

wealth

middle class

education

working class

occupation

lower class

income

societal factors

groups, roles and status, opinion leader, word of mouth, online social network, and family (most important)

personal factors

age and life-cycle stage, occupation, economic situation, lifestyle, personality and self-concept

AIO

activities, interest, opinions

psychological factors

motivation, perception, learning, beliefs and attitudes

perception process

selective exposure, selective distortion, selective retention

perception

selecting, organizing, and interrupting information to produce meaning

just noticeable difference (JND)

associated with perception

motive

reason for doing something

maslow's hierarchy of needs

physiological, safety, love/belonging, esteem, self-actualization

attitude components

cognitive (knowledge), effective (emotions), behavior (intentions)

reference groups

groups with whom buyers identify and whose values or attitudes they adopt

opinion leader

a person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

influencer marketing

a series of personalized marketing techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth in a broader and salient segment of the population

Subliminal communication

using symbols that convey meaning but are below the threshold of normal perception

steps in buyer decision process

1. need recognition
2. information search
3. evaluation of alternatives
4. purchase decision
5. post-purchase behavior

need recognition stage

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

external information search stage

when consumers seek additional information from outside sources

internal information search stage

buyers search their memories for information about products

evaluation of alternatives

choosing among brands, sizes, styles, and colors

universal set

everything

retrieval set

everything you can remember

consideration/evoked set

group of brands within a category that you view as a good alternative

purchase consideration

buyer intends to purchase the most preferred branded based on evaluation

two things that get in the way of purchase decision

situational factors and attitudes of others

post purchase customer satisfaction

is key to building profitable customer relationships

three levels of product

core customer value, actual product, augmented product

cognitive dissonance

buyer's remorse

stages of adoption process

1. awareness
2. interest
3. evaluation
4. trial
5. adoption

innovators

first adopters of new products. 2.5%

early adopters

people who adopt new products early. they respect opinion leaders. 13.5%

early mainstream

adopt new ideas before the average person. 34%

late mainstream

skeptical, they adopt an innovation only after a majority of people have tried it. 34%

lagging adopters

tradition bound, they are suspicious of changes and adopt the innovation only when it has become something of a tradition itself. 16%

intended USE of product determines

if product is consumer or business product

difference in market structure and demand
(business vs. consumer products)

1. fewer but larger buyers
2. derived demand (from consumers)
3. inelastic demand

difference in nature of buying unit
(business vs. consumer products)

1. more decision participants
2. more professional purchasing efforts

difference in purchases and types of decisions
(business vs. consumer products)

1. more complex buying decisions
2. buyer and seller are more independent
3. longer, more formalized procedures

straight rebuy

a business buying situation in which the buyer routinely reorders something without any modifications

modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

new task

a business buying situation in which the buyer purchases a product or service for the first time

participants in buying process

users, influencers, buyers, deciders, gatekeepers

gatekeepers

people who influence buying decisions

steps in buying decision process

1. problem recognition
2. general need description
3. product specification
4. supplier search
5. proposal solicitation
6. supplier selection
7. older routine specification
8. performance review

select customers to serve

segmentation and targeting

segmentation

divide total market into smaller segments

targeting

select segments to enter

decide to value propositions

differentiation and positioning

differentiation

making a product unique to create superior customer value

positioning

arranging market offering in minds of target companies

market 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

major segmentation variables

geographic, demographic, psychographic, behavioral

geographic

factors relating to location

demographic

having certain characteristics in common, such as age, race, or gender

psychographic

characteristics such as hobbies, interests, and lifestyle choices.

behavioral

occasions, benefits, user status, usage rate, loyalty status

requirements for an effective segentation

1. measurable
2. accessible
3. substantial
4. differential
5. actionable

marketing targeting strategies

1. undifferentiated (mass) marketing
2. differentiated (segmented) marketing
3. concentrated (niche) marketing
4. micro marketing (local or individual)

product position

how product is defined by consumers on important attributes

value proposition

the full positioning of a brand - the full mix of benefits on which it is positioned

perceptual map

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

selecting decision strategy

1. identifying a set of differentiating competitive advantage
2. choosing the right competitive advantage
3. selecting an overall positioning strategy

figure 6.4

winning and losing value propositions

product

Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. includes goods and services!

four types of consumer products

1. convenience product
2. shopping product
3. specialty product
4. unsought product

convenience product

frequent purchase, little planning and buying effort, low price, low customer involvement (example: toothpaste)

shopping product

less frequent purchase, lots of planning, lots of comparison (example: TV)

specialty product

strong brand preference and loyalty, special purchase effort, little comparison, low price sensitivity (example: luxury goods)

unsought products

little product awareness or knowledge

product decisions

1. product attributes
2. branding
3. packaging
4. labeling
5. product support services

product quality

related to dependability and durability

product features

the specific characteristics of a product

product design

improves usefulness

product style

surface level

branding

a name, logo, slogan, and/or ad campaign associated with a product or service

package

protect and promote product by assigning a design to product

labeling

identifies, describes, and promotes product through interrelated packaging

product line

closely related products that have similar functions and customer groups and are sold through similar outlets or fall within given price ranges

line stretching

adding products that are higher or lower priced than the existing line

line filing

adding more items within the present range of the line

product mix decisions

1. width
2. length
3. depth

width

number of different product lines the company carries

length

total number of items a company carries within its product lines

depth

the number of categories within a product line

four service characteristics

1. intangibility
2. inseparability
3. variability
4. perishability

intangibility

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

variability

quality of services depends on who provides them and when, where, and how

inseparability

services cannot be separated from their providers