MKT 301 Exam #2 UD

Consumer Behavior

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

value

a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

perceived value

the value a consumer expects to obtain from a purchase

utilitarian value

a value derived from a product or service that helps the consumer solve problems and accomplish tasks

hedonic value

a value that acts as an end in itself rather than as a means to an end

Consumer Decision Making Process

a five-step process used by consumers when buying goods or services

need recognition

result of an imbalance between actual and desired states

want

recognition of an unfulfilled need and a product that will satisfy it

Stimulus

any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing

internal information search

the process of recalling past information stored in the memory

external information search

the process of seeking information in the outside environment

non-marketing controlled information source

a product information source that is not associated with advertising or promotion

marketing-controlled information source

a product information source that originates with marketers promoting the product

evoked set

a group of brands resulting from an information search from which a buyer can choose

nudge

a small intervention that can change a person's behavior

jilting effect

anticipation of receiving a highly desirable option only to have it become inaccessible

cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

involvement

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

routine response behavior

the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time

limited decision making

the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

extensive decision making

the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

Showrooming

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

churning

when a significant number of customers are switching brands

Culture

the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next

Subculture

a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group

social class

a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

reference group

all of the formal and informal groups in society that influence an individual's purchasing behavior

primary membership group

a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers

secondary membership group

a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

aspirational reference group

a group that someone would like to join

norm

a value or attitude deemed acceptable by a group

nonaspirational reference group

a group with which an individual does not want to associate

opinion leaders

an individual who influences the opinions of others

socialization process

how cultural values and norms are passed down to children

separated self-schema

a perspective whereby a consumer sees himself or herself as distinct and separate from others

connected self-schema

a perspective whereby a consumer sees himself or herself as an integral part of a group

Personality

a way of organizing and grouping the consistencies of an individual's reactions to situations

self-concept

how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations

ideal self-image

the way an individual would like to be perceived

real self-image

the way an individual actually perceives himself or herself

Perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

selective exposure

the process whereby a consumer notices certain stimuli and ignores others

selective distortion

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

selective retention

a process whereby a consumer remembers only that information that supports his or her personal beliefs

motive

a driving force that causes a person to take action to satisfy specific needs

Maslow's Hierarchy of Needs

a method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization

learning

a process that creates changes in behavior, immediate or expected, through experience and practice

stimulus generalization

a form of learning that occurs when one response is extended to a second stimulus similar to the first

stimulus discrimination

a learned ability to differentiate among similar products

Business Marketing

the marketing of goods and services to individuals and organizations for purposes other than personal consumption

business product (industrial product)

a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers

consumer product

a product bought to satisfy an individual's personal wants

content marketing

a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant and consistent

strategic alliance

a cooperative agreement between business firms

relationship commitment

a firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely

trust

the condition that exists when one party has confidence in an exchange partner's reliability and integrity

keiretsu

a network of interlocking corporate affiliates

original equipment manufacturers (OEMs)

individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers

North American Industry Classification System (NAICS)

a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes

derived demand

the demand for business products

joint demand

the demand for two or more items used together in a final product

multiplier effect

phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product

business-to-business online exchange

an electronic trading floor that provides companies with integrated links to their customers and suppliers

Reciprocity

a practice whereby business purchasers choose to buy from their own customers

major equipment (installations)

capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

accessory equipment

goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

raw materials

Unprocessed natural products used in production

component parts

either finished items ready for assembly or products that need very little processing before becoming part of some other product

processed materials

products used directly in manufacturing other products

supplies

consumable items that do not become part of the final product

business services

expense items that do not become part of a final product

buying center

all the people in an organization who become involved in the purchase decision

new buy

a situation requiring the purchase of a product for the first time

modified rebuy

a situation in which the purchaser wants some change in the original good or service

straight rebuy

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers

market

people or organizations with needs or wants and the ability and willingness to buy

market segment

a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups

segmentation bases (variables)

characteristics of individuals, groups, or organizations

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

family life cycle (FLC)

a series of stages determined by a combination of age, marital status, and the presence or absence of children

psychographic segmentation

segmenting markets on the basis of personality, motives, lifestyles, and geodemographics

geodemographic segmentation

segmenting potential customers into neighborhood lifestyle categories

benefit segmentation

the process of grouping customers into market segments according to the benefits they seek from the product

usage-rate segmentation

dividing a market by the amount of product bought or consumed

80/20 principle

a principle holding that 20 percent of all customers generate 80 percent of the demand

satisficers

business customers who place an order with the first familiar supplier to satisfy product and delivery requirements

optimizers

business customers who consider numerous suppliers (both familiar and unfamiliar), solicit bids, and study all proposals carefully before selecting one

Target Market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

undifferentiated targeting strategy

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

concentrated targeting strategy

a strategy used to select one segment of a market for targeting marketing efforts

Niche

one segment of a market

multisegment targeting strategy

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

Cannabilization

a situation that occurs when sales of a new product cut into sales of a firm's existing products

Positioning

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general

position

the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings

product differentiation

a positioning strategy that some firms use to distinguish their products from those of competitors

perceptual mapping

a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds

Repositioning

changing consumers' perceptions of a brand in relation to competing brands