Marketing Research, Consumer Behavior, and Product/Market Concepts

What is the difference between direct and indirect competition?

Direct competition is when businesses offer the same product to the same target market, while indirect competition involves different products that satisfy the same need.

What is a substitute product?

A substitute product is an alternative product that consumers can switch to that satisfies the same need.

What are the major external forces that affect marketing decisions?

The major external forces are competitive, economic, technological, sociocultural, and political or legal factors.

What are economic forces in marketing?

Economic forces are factors like income, inflation, and unemployment that influence consumers’ ability to spend.

What is GDP and why does it matter to marketers?

GDP is the total value of goods and services produced in a country, and it matters because it reflects the health of the economy.

What is purchasing power?

Purchasing power is the amount of goods and services consumers can buy with their income.

What is consumer confidence and how does it affect behavior?

Consumer confidence is how optimistic people feel about the economy, and higher confidence usually leads to more spending.

What are demographics and why are they important?

Demographics are measurable population characteristics like age and income, and they help marketers identify and understand target markets.

What is the difference between B2B and B2C marketing?

B2B marketing involves selling to other businesses, while B2C marketing involves selling directly to consumers.

How do decision-making processes differ between B2B and B2C buyers?

B2B decisions are more rational and take longer, while B2C decisions are often quicker and more emotional.

What is System 1 thinking?

System 1 thinking is fast, automatic, and based on intuition.

What is System 2 thinking?

System 2 thinking is slow, deliberate, and based on logical reasoning.

When do consumers use System 1 versus System 2 thinking?

Consumers use System 1 for routine or low-involvement purchases and System 2 for complex or high-involvement decisions.

What is the consumer decision-making process?

It is the series of steps consumers go through when deciding to purchase a product.

What are the five steps of the consumer decision-making process in order?

The steps are problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.

What is internal information search?

Internal information search involves using past experiences or memory to make a decision.

What is external information search?

External information search involves gathering information from outside sources like reviews or recommendations.

What is an opinion leader and why are they important?

An opinion leader is someone who influences others’ decisions, and they are important because people trust their recommendations.

What is Maslow’s hierarchy of needs?

Maslow’s hierarchy is a model that ranks human needs from basic physical needs to self-actualization.

How does Maslow’s hierarchy relate to consumer behavior?

Consumers are motivated to satisfy lower-level needs before higher-level needs, which influences what they choose to buy.

What is marketing research and what is its purpose?

Marketing research is the process of collecting and analyzing data to make better business decisions.

What are the steps in the marketing research process?

The steps are defining the problem, developing a research plan, collecting data, analyzing data, and reporting results.

What is exploratory research?

Exploratory research is used to gain insights and better understand a problem.

What is descriptive research?

Descriptive research describes characteristics or behaviors of a market.

What is causal research?

Causal research determines cause-and-effect relationships.

What is the difference between primary and secondary data?

Primary data is collected firsthand, while secondary data already exists.

What are the advantages and disadvantages of primary data?

Primary data is accurate and specific but expensive and time-consuming.

What are the advantages and disadvantages of secondary data?

Secondary data is quick and inexpensive but may be outdated or less accurate.

What is the difference between probability and nonprobability sampling?

Probability sampling gives every member an equal chance of selection, while nonprobability sampling does not.

What is simple random sampling?

Simple random sampling is when every member of a population has an equal chance of being selected.

What is convenience sampling?

Convenience sampling involves selecting participants who are easiest to reach.

What is reliability in research?

Reliability is the consistency of results when a study is repeated.

What is validity in research?

Validity is how accurately a study measures what it is intended to measure.

What is a product?

A product is anything offered to satisfy a need or want.

What is the product life cycle?

The product life cycle describes the stages a product goes through from introduction to decline.

What are the four stages of the product life cycle?

The stages are introduction, growth, maturity, and decline.

How do sales and profits change across the product life cycle?

Sales and profits start low, increase during growth, peak in maturity, and decline afterward.

How does competition change across the product life cycle?

Competition increases during growth, peaks in maturity, and decreases in decline.

How do pricing strategies change across the product life cycle?

Prices may start high or low, become competitive in growth, and often decrease in maturity and decline.

How do promotion strategies change across the product life cycle?

Promotion starts by informing, then persuading in growth, reminding in maturity, and becomes minimal in decline.

What are the stages of new product development?

The stages are idea generation, screening, business analysis, development, testing, commercialization, and evaluation.

What is product adoption?

Product adoption is the process by which consumers begin to use a new product.

What is diffusion?

Diffusion is how a product spreads through a market over time.

What are innovators, early adopters, early majority, late majority, and laggards?

They are categories of consumers based on how quickly they adopt new products.

What is market segmentation?

Market segmentation is dividing a market into smaller groups with similar needs.

What is a target market?

A target market is the specific group a company chooses to serve.

What is positioning?

Positioning is how a brand is perceived in the minds of consumers.

What are the main types of segmentation?

The main types are demographic, geographic, psychographic, and behavioral segmentation.

What is demographic segmentation?

Demographic segmentation divides the market based on measurable characteristics like age or income.

What makes a segment effective?

A segment is effective if it is measurable, accessible, substantial, differentiable, and actionable