Marketing: Know Your Customer - Unit 2 Part 1 Notes

Fill-in-the-blank practice flashcards covering marketing fundamentals, the 4 P's, segmentation, customer acquisition, data risks, Cialdini's principles of influence, and consumer decision-making factors.

__________ refers to the activities done to identify customers' problems, needs, and wants, and to promote, sell, and deliver products.

Marketing

In the marketing mix (the $4$ P's), __________ is the good or service a business offers to customers.

product

In the marketing mix, __________ represents the amount a business charges for a product.

price

In the marketing mix, __________ refers to where and how customers access products.

place

In the marketing mix, __________ is how businesses communicate value, differentiate products, and influence customer decisions.

promotion

Measurable qualities that are basically numbers, such as race, gender, ethnicity, and height, are __________ characteristics.

demographic

Cognitive and behavioral factors such as interests, activities, and lifestyles are __________ characteristics.

psychographic

Grouping customers based on shared characteristics to better understand their needs, wants, and problem-solution-fit is called __________.

market segmentation

A single group formed from market segmentation is referred to as a __________.

market segment

A buyer most likely to purchase a specific product because of their wants, needs, and preferences is a __________.

target customer

A fictional description of a specific sample customer's demographic and psychographic data, wants, needs, and preferences is a __________.

customer profile

Businesses target specific customers because doing so is

More effective and less expensive

__________ occurs when customer demand in the market is sufficient to generate profit.

Product-market-fit

Service tailored to the needs or preferences of specific customers is

Personalized service

Programs that provide incentives for frequent buyers are known as __________.

rewards programs

INFO COLLECTED FROM CUSTOMERS THROUGH TOOLS (LIKE SURVEYS)

Customer feedback

Using social media and the internet to connect with customers

Digital relationships

The average cost of gaining 1 customer is represented by

CAC, customer acquisition cost

Customers' tendency to continue purchasing from a particular brand is termed __________.

brand loyalty

The estimated amount of money a customer will spend on a business's products over time is the __________.

Lifetime Value (LTV)

The data collection risk that happens when data is collected, compiled, or stored without customers knowing or understanding how it's used is __________.

privacy infringement

When improperly secured customer data is accessed or exposed, it is called a __________.

data breach

The unauthorized use of someone's personal information is termed __________.

identity theft

Deception used to gain money, property, or another benefit is defined as __________.

fraud

Systematically evaluating alternative products to identify which best addresses a customer's needs and wants is called __________.

rational decision making

The time and other costs consumers incur when using a rational decision-making process are referred to as __________ costs.

information-gathering

According to Cialdini's principles of influence, the principle stating that people tend to want something more when it seems rare or limited is __________.

scarcity

Under Cialdini's principles of influence, the principle that people tend to follow or obey authority figures is __________.

authority

Under Cialdini's principles of influence, the principle that people tend to follow social-group norms is __________.

consensus

According to Cialdini, the principle stating that people feel obligated to return something when given something of value is __________.

reciprocity

Under Cialdini's principles of influence, the principle that people tend to repeat behavior that aligns with their self-image is __________.

consistency

According to Cialdini, the principle where people are more likely to be influenced when they perceive themselves as part of a group is __________.

unity

Age, gender, education, income, budget, occupation, and lifestyle are categorized as __________ factors influencing decisions.

personal

Values, beliefs, perceptions, learning from prior experiences, and individual motivations are categorized as __________ factors influencing decisions.

psychological

Peers, family, social status, cultural norms, and media are categorized as __________ factors influencing consumer decisions.

social

Temporary conditions such as store design, noise, lighting, organization, timing, and product availability are known as __________ influences.

situational

A consumer's typical routine for making purchases, including timing, frequency, and quantity, is their __________.

purchasing pattern

Laws designed to help consumers avoid fraudulent or unsafe purchases are known as __________.

consumer protection laws

Products that customers use when existing products become more difficult to obtain are called __________.

substitute products