MKTG Chapter 5 & 6 – Analyzing the Marketing Environment ; Consumer Behavior

Flashcard Set: Chapter 5 – Analyzing the Marketing Environment

1. Immediate Environment

Front: What are the components of the immediate environment?
Back: Company, competitors, corporate partners, physical environment.

Front: How do competitors influence marketing strategy?
Back: Firms must analyze competitors’ strengths, weaknesses, and responses to their strategies.

Front: What are corporate partners?
Back: Other businesses that help a firm succeed (e.g., suppliers, manufacturers).

Front: How does the physical environment impact marketing?
Back: Influences product use and sustainability; includes trends like green marketing and greenwashing.

2. Macroenvironmental Factors

Front: What are the six key macroenvironmental factors?
Back: Culture, demographics, social trends, technology, economic situation, political/legal environment.

Culture

Front: What is the difference between country culture and regional culture?
Back:

• Country culture: National traditions, language, customs.

• Regional culture: Local preferences within a country (e.g., McDonald’s menu variations).

Demographics

Front: What are generational cohorts?
Back: Groups of people from the same generation with similar buying behaviors.

Front: Name the four main generational cohorts.
Back:

• Gen Z (2001-2014): Digital natives.

• Gen Y (Millennials, 1977-2000): Tech-savvy, social-conscious.

• Gen X (1965-1976): Family/work balance.

• Baby Boomers (1946-1964): Brand loyal, quality-focused.

Front: How does income affect marketing?
Back: Determines purchasing power and target market strategies.

Front: How does education impact spending power?
Back: Higher education → higher income → greater purchasing power.

Front: Why is gender important in marketing?
Back: Roles are shifting; brands must be gender-sensitive and inclusive.

Front: What is the projected ethnic makeup of the U.S. by 2050?
Back: Minorities = 50% of the population; Hispanic population = 23%.

3. Social Trends

Front: What are the major social trends shaping marketing?
Back: Sustainability, health & wellness, efficient food utilization.

Front: How does sustainability impact marketing?
Back: Companies align with UN Sustainable Development Goals to meet consumer demand for ethical products.

Front: What marketing trends are driven by health and wellness?
Back: Focus on fitness, healthy eating, mobile health apps.

Front: How is food utilization changing in marketing?
Back: Reducing food waste, hunger, and promoting diet-related products.

4. Technological Advances

Front: How does technology affect marketing?
Back: Impacts product innovation, communication, and retail trends.

Front: Name three cutting-edge technologies in marketing.
Back: AI, Internet of Things (IoT), robotics.

Front: What is a major privacy concern in marketing?
Back: Data protection and compliance with laws like GDPR & CCPA.

5. Economic Situation

Front: How does the economy influence consumer behavior?
Back: Determines how people spend based on factors like inflation, interest rates, and currency value.

Front: What are key economic factors to monitor?
Back: Inflation, foreign currency fluctuations, interest rates.

6. Political & Legal Environment

Front: What are the key legal acts that impact marketing?
Back:

• Sherman Antitrust Act (1890): Prevents monopolies.

• Clayton Act (1914): Regulates mergers.

• Federal Trade Commission Act (1914): Protects against false advertising.

• Robinson-Patman Act (1936): Prevents price discrimination.

7. Responding to the Environment

Front: How can marketers succeed in a changing environment?
Back: By responding quickly, accurately, and sensitively to consumer needs.

This flashcard set simplifies key concepts while ensuring complete coverage of Chapter 5. Use these for quick review, and you’ll be well-prepared for your exam! ✅

Flashcard Set: Chapter 6 – Consumer Behavior

1. Consumer Decision Process

Front: What are the five stages of the consumer decision process?
Back: Need recognition, search for information, evaluation of alternatives, purchase & consumption, postpurchase outcomes.

Front: What is the difference between a need and a want?
Back: A need is necessary for survival; a want is a desire for something not essential.

Front: What are functional vs. psychological needs?
Back:

• Functional: Based on product performance (e.g., running shoes for support).

• Psychological: Based on personal satisfaction (e.g., designer shoes for style).

2. Information Search

Front: What is the difference between internal and external search?
Back:

• Internal → Uses personal memory/experience.

• External → Seeks outside information (reviews, ads, recommendations).

Front: How does locus of control affect search behavior?
Back:

• Internal locus → More research, believes in personal control over choices.

• External locus → Less research, relies on fate/external factors.

Front: What are the types of perceived risk?
Back:

1. Performance (Will it work well?)

2. Financial (Is it worth the cost?)

3. Social (What will others think?)

4. Physiological (Is it safe?)

5. Psychological (Will it make me happy?)

3. Evaluation of Alternatives

Front: What are universal, retrieval, and evoked sets?
Back:

• Universal → All possible choices.

• Retrieval → Brands recalled from memory.

• Evoked → Brands actually considered for purchase.

Front: What is the difference between evaluative criteria and determinant attributes?
Back:

• Evaluative criteria: General features of a product (e.g., price, quality).

• Determinant attributes: Key factors that make a choice stand out (e.g., organic, long battery life).

Front: What are compensatory vs. noncompensatory decision rules?
Back:

• Compensatory → Weighs multiple factors (e.g., best overall score).

• Noncompensatory → Focuses on one key factor (e.g., only choosing the healthiest option).

4. Purchase & Consumption

Front: What are impulse products?
Back: Items bought without planning (e.g., candy at checkout).

Front: What is choice architecture?
Back: The way choices are structured to influence decision-making.

Front: What is a default option?
Back: A pre-set choice (e.g., auto-renewal on a subscription).

5. Postpurchase Outcomes

Front: How can companies increase postpurchase satisfaction?
Back:

• Set realistic expectations.

• Provide product support.

• Offer return policies.

• Stay engaged with customers.

Front: What is cognitive dissonance?
Back: Buyer’s remorse after purchase, especially for expensive or high-risk items.

Front: How do firms reduce cognitive dissonance?
Back:

• Thank-you emails.

• Follow-up messages.

• Easy return policies.

Front: What is customer loyalty?
Back: The likelihood of repeat purchases; companies use CRM systems to track and reward loyal customers.

Front: What is negative word of mouth?
Back: When unhappy customers share bad experiences online or in person.

6. Factors Influencing Consumer Decision Process

Psychological Factors

Front: What are the five levels of Maslow’s hierarchy of needs?
Back:

1. Physiological (food, water).

2. Safety (protection, health).

3. Love/Belonging (relationships).

4. Esteem (status, recognition).

5. Self-actualization (personal growth).

Front: What are the three components of attitude?
Back:

1. Cognitive (What you believe).

2. Affective (How you feel).

3. Behavioral (What you do).

Front: How does perception affect consumer behavior?
Back: Perception shapes how consumers interpret marketing messages.

Front: What is the role of learning and memory in consumer behavior?
Back: Past experiences influence future decisions.

Social Factors

Front: How do families influence purchasing decisions?
Back: Families make joint decisions based on group needs.

Front: What are reference groups?
Back: Groups (friends, celebrities, coworkers) that influence consumer choices.

Front: How does culture impact buying behavior?
Back: Shared values and customs shape consumer preferences.

7. Situational Factors

Front: What are situational influences on consumer decisions?
Back:

1. Purchase situation → Buying for yourself vs. as a gift.

2. Sensory situation → Influences from visuals, smell, touch, sound, or taste.

3. Temporal state → Mood & time of day affect choices.

8. Involvement & Buying Decisions

Front: What is consumer involvement?
Back: The level of interest and effort put into making a purchase.

Front: How do high- vs. low-involvement consumers process ads?
Back:

• High involvement → Deep processing, evaluates all details.

• Low involvement → Quick decisions, relies on surface-level cues (e.g., celebrity endorsement).

Front: What are the four types of buying decisions?
Back:

1. Extended Problem Solving → High effort (e.g., buying a house).

2. Limited Problem Solving → Moderate effort (e.g., picking a new phone case).

3. Impulse Buying → On-the-spot purchases.

4. Habitual Decision-Making → Routine purchases with little thought.

This flashcard set covers all key concepts from Chapter 6: Consumer Behavior while keeping things simple and effective for your exam prep! 🎯💯