MKTG 14e Chapters 5–9 Comprehensive Vocabulary Study Guide

Comprehensive vocabulary flashcards covering key concepts, frameworks, and definitions from Chapters 5 through 9 of MKTG 14e, including Global Vision, Consumer Decision Making, Business Marketing (B2B), Market Segmentation and Targeting, and Marketing Research.

Global vision

The ability to recognize and respond to international marketing opportunities while monitoring foreign competitors and threats.

Corporate catalyst

An organizational structure that supports an ongoing internal flow of fresh, localized ideas across a company.

Free trade

The buying and selling of goods and services across national borders without protectionist operating limits, framed as potential mutual gain.

Absolute advantage

A condition where a country produces a good or service at a lower absolute production cost than another country, or acts as the exclusive supplier.

Comparative advantage

The principle of specializing in goods and services with the lowest relative opportunity cost and trading for others.

Outsourcing

Transferring business processes or organizational roles to independent overseas operators, often to reduce labor costs.

Inshoring

Returning production or manufacturing operations back to the domestic country.

Exporting

Selling domestic output abroad; export buyers take title and risk, brokers connect counterparts, and agents represent manufacturers in foreign markets.

Licensing & franchising

A foreign market entry strategy that permits a foreign firm to use intellectual property, trademarks, or a business model under an agreement.

Contract manufacturing

An arrangement where an overseas partner manufactures products, allowing a company to avoid investing directly in foreign factories.

Joint venture

A cross-border partnership combining assets to create a distinct venture; provides local knowledge and distribution but may face decision-making conflicts.

Direct investment

Owning foreign production facilities or branch operations, involving the highest capital exposure and operational control.

Need recognition

The first stage of the consumer decision journey, in which a consumer recognizes a gap between current reality and a desired state.

Information search

The second stage of the consumer decision journey, where consumers seek purchase options using memory (internal) or outside sources (external).

Evaluation of alternatives

The third stage of the consumer decision journey, where candidate brands are compared using desired attributes like price, quality, and features.

Purchase execution

The fourth stage of the consumer decision journey, involving decisions on whether, when, where, and how to buy, as well as brand, vendor, and payment terms.

Postpurchase behavior

The fifth stage of the consumer decision journey, where the consumer evaluates whether the product met expectations by comparing actual performance with expectations.

Internal search

The process of retrieving information directly from personal memory when considering purchase options.

External search

The process of seeking purchase information from outside sources, such as reviews, friends, advertising, or other public sources.

Evoked set

The specific group of brands that a consumer seriously considers when making a purchase decision.

Cognitive dissonance

Mental discomfort or doubt experienced after making a decision, especially following a significant or expensive purchase.

Post-sale reassurance

Follow-up communication utilized by marketers to help consumers reduce postpurchase doubt and cognitive dissonance.

Routine behavior

A consumer decision style characterized by low involvement, short decision time, low cost, internal memory search only, and consideration of a single alternative.

Limited evaluation

A consumer decision style characterized by low to moderate involvement, short to moderate time, low to moderate cost, mostly internal search, and evaluating a few select brands.

Extensive analysis

A consumer decision style characterized by high involvement, extended time, high cost, both internal and external search, and evaluating many diverse brands.

Intended use

The key criterion that distinguishes a business product from a consumer product, rather than the physical design of the product.

Derived demand

The principle that demand for industrial business components depends directly on consumer demand for final goods.

Inelastic demand

A market condition where price changes in a specific component cause little to no change in total demand for the broader finished product.

Joint demand

A demand dynamic occurring when two or more input goods are required together to produce a single final output.

Fluctuating demand / multiplier effect

A phenomenon where small shifts in consumer demand produce disproportionately larger shifts in demand for industrial plants and equipment.

Major equipment (installations)

Long-lived capital assets purchased by businesses, such as blast furnaces, vehicle fleets, and mainframe computers.

Accessory equipment

Shorter-lived operational instruments utilized in business operations, such as hand tools and desktop computers.

Raw materials

Unprocessed agricultural or extractive resources utilized in business production, such as grain and iron ore.

Component parts

Finished, assembly-ready items incorporated into a product with minimal transformation that retain their distinct identity in the final assembly.

Processed materials

Materials used in blending or fabrication that lose their separate, independent identity within the final compound or mixture.

Supplies (MRO)

Consumable items required for maintenance, repair, and operations, such as industrial lubricants and cleaning solutions.

Business services

External support services contracted by firms, such as legal counsel, financial auditing, and IT maintenance.

Initiator

The member of a business buying center who first identifies the need for a purchase.

Influencer

The member of a business buying center who provides relevant information or affects the final buying decision.

Decider

The member of a business buying center who makes or approves the final selection and purchase choice.

Buyer

The member of a business buying center who manages formal purchase arrangements and logistics.

Gatekeeper

The member of a business buying center who controls the flow of information and regulates vendor access to decision-makers.

Substantiality

The segmentation filter assessing whether a potential customer segment is large or profitable enough to justify developing a separate marketing mix.

Identifiability & measurability

The segmentation filter assessing whether a segment can be identified and evaluated with verifiable, concrete metrics.

Accessibility

The segmentation filter assessing whether a targeted customer group can be reached effectively via promotion and distribution channels.

Responsiveness

The segmentation filter assessing whether a customer segment exhibits a distinctly different reaction to a customized marketing mix compared to other groups.

Undifferentiated targeting strategy

A targeting approach that applies one general marketing mix to the entire overall market, achieving lower costs through standardization.

Concentrated (niche) targeting strategy

A targeting strategy that focuses organizational resources entirely on a single segment, creating strong niche positioning but carrying risk if the niche contracts.

Multisegment targeting strategy

A targeting approach that serves multiple distinct market segments with tailored offers, growing revenue potential and spreading risk at the cost of higher expenses.

Satisficers

B2B procurement buyers who choose the first familiar, accessible supplier meeting baseline requirements, prioritizing efficiency and speed.

Optimizers

B2B procurement buyers who thoroughly evaluate available vendors, bids, performance metrics, and financial proposals to maximize strategic value.

Brand cannibalization

A market situation where a company's own products compete directly against each other for the same customers or sales volume.

Descriptive research role

The marketing research role focused on answering 'what happened?' by gathering and summarizing historical or factual data.

Diagnostic research role

The marketing research role focused on answering 'why did it happen?' by investigating underlying causes and effects.

Predictive research role

The marketing research role focused on answering 'what might happen next?' by forecasting future outcomes and demand patterns under varying scenarios.

Probability sample

A sample in which every element of the target population has a known, nonzero likelihood of being selected.

Nonprobability sample

A sample derived through nonrandom selection techniques based on convenience, judgment, quotas, or referrals.

Simple random sampling

A probability sampling technique where every individual within the population is chosen purely at random.

Stratified sampling

A probability sampling method in which the target population is separated into distinct strata and samples are collected from each stratum.

Cluster sampling

A probability sampling method where the researcher divides the population into groups or clusters and analyzes the selected clusters.

Systematic sampling

A probability sampling method where a researcher chooses a random starting point and selects every $k$-th member from a sampling frame.

Convenience sampling

A nonprobability sampling approach where respondents are selected solely because they are the easiest to access.

Judgment sampling

A nonprobability sampling method where the researcher selects study participants based on their personal professional judgment.

Quota sampling

A nonprobability sampling method where participants are recruited to satisfy predetermined subgroup quotas without random selection.

Snowball sampling

A nonprobability sampling technique in which initial research participants refer and recruit additional participants.

Sampling error

An error that occurs when a selected sample does not accurately mirror the characteristics of the overall target population.

Frame error

An error that occurs when the sampling list or database used to draw participants differs from or omits members of the actual target population.

Measurement error

An error that occurs when collected survey data differs from the intended objective information due to factors like misleading or confusing questions.