Marketing Test 3

Problem Recognition

It is the result of a discrepancy between a desired state and an actual state that activates the decision process.

Actual state

The way an individual perceives their feelings and situation at the present time.

Desired state `

The way an individual wants to feel or be at the present time.

Factors that influence Problem Recognition

The magnitude of the discrepancy between the desired state and the actual state, and the relative importance of the problem.

Active Problem

A problem the consumer is aware of or will become aware of in the normal course of events.

Marketing strategies for Active Problems

Marketers need to convince consumers that their brand is the superior solution.

Inactive Problem

A problem of which the consumer is not aware.

Marketing strategies for Inactive Problems

Marketers must convince consumers that they have the problem and that their brand is a superior solution.

Approaches to activating Problem Recognition

Influencing the actual state, influencing the desired state, and increasing the importance and magnitude of the discrepancy.

Difference between Internal and External Search in the consumer decision process

Internal search involves searching long-term memory for solutions, while external search involves seeking relevant external information.

Evaluative Criteria

The various dimensions, features, or benefits a consumer looks for in response to a specific problem.

Conjunctive Decision Rule

A decision-making process where consumers choose by brand based on meeting all cutoffs

Disjunctive Decision Rule

A decision-making process where consumers set their decision based on whether an attribute is higher than minimal cut-off.

Elimination-by-Aspects Decision Rule

A decision-making process where specific attribute cut-offs imposed

Lexicographic Decision Rule

A decision-making process where decision is based off the best brand for most important attribute

Classical Conditioning

Learning that occurs through repetitive pairing and association of two stimuli.

Operant Conditioning

Learning that occurs as individuals learn to perform behaviors that produce positive outcomes and avoid those that yield negative outcomes.

Iconic Rote Learning

Learning that involves the association between two or more concepts in the absence of conditioning.

Product

Anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.

The main purposes of Branding

Product identification, repeat sales, and new-product sales.

The difference between Manufacturers' Brands and Private Brands

Manufacturers' brands are owned by the manufacturer, while private brands are owned by a wholesaler or retailer.

Greenwashing

When a product or company attempts to give the impression of environmental friendliness, regardless of its actual environmental impact.

Packaging

Packaging serves to protect the product, provide information, and promote the product through labeling.

The two forms of labeling

Persuasive labeling, which focuses on promotional themes, and informational labeling, which helps consumers make proper product selections.

Brand Equity

The value of a company or brand name, influenced by awareness, perceived quality, and brand loyalty.

Brand Identity

Essential for developing brand loyalty and distinguishing products in the market.

The Major Stages in New Product Development

The systematic process that includes idea generation, screening, concept development, and market testing.

Services

A form of product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.

Brand Equity

The value of a company or brand name.

Global brand

A brand that obtains at least one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data  

Brand Loyalty

Consistent preference for one brand over all others, brand identity is essentially to developing brand loyalty

Manufacturer’s brand

The name of a manufacturer

Private brand

A brand brand name owned by a wholesaler or retailer. Consumers more accepting of private brands; Low overhead and no marketing costs yield higher profit margins

Persuasive labeling

A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.

Positive Reinforcement

Something pleasant is added in order to increase behaviour

Negative Reinforcement

Something unpleasant is taken away in order to increase behaviour

Positive Punishment

Something unpleasant is added in order to decrease behaviour

Negative Punishment

Something pleasant is taken away in order to decrease behaviour