Marketing and Consumer Decision Making Review

Practice questions covering marketing fundamentals, the marketing mix, situational analysis (5 C's), and the consumer decision-making process.

In marketing, what is required for an exchange to be facilitated regarding value?

The customer needs to perceive the value of the offer as greater than or equal to ($\ge$) its actual price or cost.

What are the three steps sequence for growth in marketing?

Growth comes from gaining new consumers, then eventually retaining and developing those consumers.

What are the three core ways to accomplish marketing management goals?

1. Understand what consumers value; 2. Create and offer that value; 3. Take some of the value for profit.

What are the components of the '4 p's' in the marketing mix?

Place, Promotion, Product, and Price.

In the '4 p's' framework, what does 'Place' refer to?

The distribution channel and how the product will be distributed, including retail locations, home deliveries, and country limitations.

What is the focus of 'Product' within the 4 p's?

Determining what the product is going to be based on who the target customer is and what they value.

What factors are considered under 'Price' in the marketing mix?

The cost of the product, the cost to make/supply it, and the pricing structure (e.g., full price, rent, financing plans).

List the '5 c's' that guide or influence marketing decisions.

Company, Customers, Competition, Context, and Collaborators.

What aspects are analyzed under the 'Company' category of the 5 c's?

Goals (profit, volume, market share, proof of concept), assets and liabilities, skillsets, core competencies, and company values (e.g., Chick-fil-A being closed on Sundays).

What does the 'Context' category of the 5 c's analyze?

External factors over which the company has no control, identified as opportunities and threats.

What does the acronym 'PEETS' stand for within the context of marketing analysis?

Political/legal, Environmental, Economic, Technological, and Social.

How did the development of GLP-1 for diabetes impact different industries as a contextual factor?

It acted as a threat to food consumption, plastic surgery, and older diabetes treatments, while presenting an opportunity for the fitness industry, airlines (lower fuel due to less weight), and the wedding dress industry.

What do the letters in 'STP' represent regarding customer outcomes?

Segmenting (identifying groups), Targeting (choosing the best segment), and Positioning.

What are the five stages of the Consumer Decision Making Process (DMP)?

1. Trigger; 2. Info search; 3. Info processing & evaluation; 4. Purchase decision; 5. Post purchase evaluation.

How can a 'trigger' be built into a consumer product?

By including an indicator, such as the change light on a water filter.

What characterizes 'Low involvement' decisions?

Less time spent deciding, low risk if the wrong choice is made, and little effect on emotions.

What characterizes 'High involvement' decisions?

More time spent deciding, high risk if the wrong choice is made, and a significant effect on emotions.

What are two ways to measure needs triggers and goal activation?

Quantitative methods (e.g., Surveys) and Qualitative methods (e.g., Observations).

What does the example of McDonald's $\frac{1}{4}$ pound burger versus A&W's $\frac{1}{3}$ pound burger illustrate?

That consumer decisions are often imperfect, bounded, and irrational, as consumers perceived the $\frac{1}{4}$ pound burger as larger or better value than the $\frac{1}{3}$ pound burger.

What is the 'Anchoring and adjustment' heuristic?

A bias where people make estimates for values by 'anchoring' towards the initial value they see and then adjusting from there.

Which three heuristics and biases are specifically mentioned in the notes regarding judgement and choice?

Anchoring and adjustment, Availability, and Representativeness.