Marketing Final

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 - Step 1: 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 information stored in the memory.

External Information Search

The process of seeking information in the outside environment.

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.

Planned Purchase

Typically made after the consumer has collected a large amount of information (e.g., home, car).

Partially Planned Purchase

Typically made when the consumer knows the product category but waits until shopping to choose a specific style or brand (e.g., clothing, furniture).

Impulse or Unplanned Purchase

Often low-priced items or items on sale or purchased with a coupon, sometimes triggered by a nudge (e.g., food or snack item).

What is marketing research?

The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing a company.

What is secondary data?

Data that already exists and has not been gathered for a specific research project, requiring minimal effort and cost.

What are some potential problems with secondary data?

Accuracy, availability, timeliness, costs, and comparability of data.

Name a source of secondary data from government.

International Trade Administration (ita.doc.gov) or USAID (info.usaid).

What is primary research?

Research conducted when secondary data are inadequate, providing accurate data for specific research problems.

What are some challenges of primary research?

Difficulties in obtaining data, high costs, and more time needed to gather data.

What is the first step in the primary research process?

Identify the research problem.

What should a research plan include?

Data sources, research approaches, contact methods, research instruments, and sampling plan.

What are some research approaches in primary research?

Observation, focus groups, surveys, and experiments.

What is exploratory research?

Research that helps decide on a set of decision alternatives and broadens the scope of alternatives.

What is the purpose of focus groups in exploratory research?

To gather open-ended feedback and understand the language used by respondents.

What factors should be considered when choosing a contact method for surveys?

Cost, flexibility of questions, non-response, speed, and representativeness.

What is the recommended order for questions in a questionnaire?

Start with easy questions, then transition to more difficult questions, and end with personal demographic questions.

What is a screener question?

A question used to identify if a respondent is in the target segment for the survey.

What is a double-barreled question?

A question that asks about two different issues but only allows for one answer.

Why is pre-testing important in questionnaire design?

To ensure question validity, reliability, relevance, and to maintain a user-friendly flow.

What should be avoided to prevent bias in survey questions?

Leading/loaded questions and ambiguous wording.

What is the significance of using unambiguous words in survey questions?

To ensure that all respondents interpret the questions in the same way.

What is the purpose of filter/screener questions?

To allow for 'Don't know' as an alternative and filter out unqualified respondents.

What is a common pitfall in defining response categories?

Response categories should not overlap and must be clearly defined.

What is the best practice for sensitive questions in surveys?

Keep sensitive questions at the end and provide ranges to encourage responses.

What is the role of classification and demographic questions in a questionnaire?

To gather personal information that may be sensitive and should be placed at the end.

What is order bias in survey questions?

When the order of questions influences the responses given by participants.

What is the importance of question relevance in a survey?

To ensure that respondents have the experience or information needed to answer the questions.

What is the purpose of using screening questions?

To determine if respondents meet the criteria for the survey and to filter out irrelevant participants.

What should be considered when designing a questionnaire?

The clarity of questions, the flow of the questionnaire, and the potential biases in responses.

What is the significance of using a cover story in a questionnaire?

To provide context and encourage participation by making the survey seem relevant.

What is a product?

Everything, both favorable and unfavorable, that a person receives in an exchange; can be tangible or intangible.

What are the two main types of products?

Business products and consumer products.

What is a convenience product?

A relatively inexpensive item that merits little shopping effort, often bought with little planning.

What distinguishes shopping products from convenience products?

Shopping products require comparison shopping and are usually more expensive and found in fewer stores.

Define homogeneous shopping products.

Shopping products that are basically similar, allowing for easier comparison.

Define heterogeneous shopping products.

Shopping products that are essentially different, requiring more careful comparison.

What is a specialty product?

A particular item for which consumers search extensively and are reluctant to accept substitutes.

What characterizes unsought products?

Products unknown to the potential buyer or known products that the buyer does not actively seek.

What is a product item?

A specific version of a product that can be designated as a distinct offering among an organization's products.

What is a product line?

A group of closely related product items.

What is a product mix?

All products that an organization sells.

What is product mix width?

The number of product lines an organization offers.

What is product line depth?

The number of product items in a product line.

What is product modification?

Changing one or more of a product's characteristics.

What is quality modification?

A change in a product's dependability or durability.

What is functional modification?

A change in a product's versatility, effectiveness, convenience, or safety.

What is style modification?

A change in how the product looks.

What is planned obsolescence?

The practice of modifying products so those that have already been sold become obsolete before they actually need replacement.

What is repositioning in marketing?

Changing consumers' perceptions of a brand.

What is a product line extension?

Adding additional products to an existing product line to compete more broadly in the industry.

What are the benefits of product line contraction?

Concentrating resources on important products, reducing waste on poorly performing products, and freeing resources for new products.

What is branding?

The main tool marketers use to distinguish their products from those of the competition.

What is a brand?

A name, term, symbol, design, or combination that identifies a seller's products and differentiates them from competitors' products.

What is a brand name?

The part of a brand that can be spoken, including letters, words, and numbers.

What is a brand mark?

The elements of a brand that cannot be spoken.

What are the three main purposes of branding?

Product identification, brand equity, and new-product sales.

What is brand equity?

The value of a company or brand name.

What defines a global brand?

A brand that obtains at least one-third of its earnings from outside its home country and is recognizable outside its home base.

What is brand loyalty?

A consistent preference for one brand over all others.

What is the difference between a manufacturer's brand and a private brand?

A manufacturer's brand is owned by the manufacturer, while a private brand is owned by a wholesaler or retailer.

What is a captive brand?

A brand manufactured by a third party for an exclusive retailer, without evidence of the retailer's affiliation.

What is individual branding?

Using different brand names for different products.

What is family branding?

Marketing several different products under the same brand name.

What is co-branding?

Placing two or more brand names on a product or its package.

What is ingredient branding?

Identifies a branded part that makes up the product.

What is cooperative branding?

Occurs when two brands receive equal treatment.

What is complementary branding?

When products are marketed together to suggest usage.

What is a trademark?

The exclusive right to use a brand or part of a brand.

What is a service mark?

A trademark for a service.

What are the functions of packaging?

To contain and protect products, promote products, facilitate storage and use, and reduce environmental damage.

What is persuasive labeling?

A type of package labeling that focuses on a promotional theme or logo, with consumer information being secondary.

What is informational labeling?

A type of package labeling designed to help consumers make proper product selections.

What is greenwashing?

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

What are universal product codes?

A series of thick and thin vertical lines (bar codes) used to track products.

What are the three options for handling brand names in foreign markets?

One brand name everywhere, adaptations and modifications, or different brand names in different markets.

What aspects of packaging are important in international marketing?

Labeling, aesthetics, and climate.

What is a warranty?

A confirmation of the quality or performance of a good or service.

What is an express warranty?

A written guarantee.

What is an implied warranty?

An unwritten guarantee that the good or service is fit for the purpose for which it was sold.