Marketing Exam 2

Market Segmentation

The process of taking a heterogeneous market and breaking it down into smaller homogeneous markets.

Targeting Strategies

Approaches used to select specific segments of the market to serve.

Requirements of a Market

Must need a product, have the ability to purchase it, be willing to use buying power, and have the authority to buy.

Differentiated Targeting Strategy

A targeting strategy that involves serving multiple market segments with different offerings.

Demographic Segmentation

Segmentation based on observable characteristics, such as physical traits, occupation, and location.

Geographic Segmentation

Segmentation based on the geographical location of consumers.

Psychographic Segmentation

Segmentation that uses personality characteristics, motives, and lifestyle to group consumers.

Consumer Behavior

The complex process by which individuals acquire, use, and dispose of products or services.

Cognitive Dissonance

The feeling of regret after a purchase when one wishes they bought something else.

Product Life Cycle

The progression of a product through four stages: introduction, growth, maturity, and decline.

Brand Loyalty

The tendency of consumers to continuously purchase a specific brand.

Perceived Risk

The potential negative consequences consumers believe they may face when making a purchase.

Product Mix

The total group of products that an organization makes available to customers.

Operating Conditioning

Learning where responses are learned or strengthened based on certain consequences.

Brand Extension

Using an existing brand name to launch a new product in a different category.

Maslow's Hierarchy of Needs

A theory that categorizes human needs into five levels, from basic to complex. The levels include physiological, safety, love and belonging, esteem, and self-actualization.

Involvement

The personal relevance or importance of a purchase decision to the consumer.

Peripheral Route

A low-involvement process in consumer decision making where beliefs influence behavior first and then attitude.