Marketing Test

Ch 5 Consumer behavior- Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services. 5 Steps to decision process- need recognition, information search, evaluation of alternative, purchase, post purchase behavior. Need recog- result of an imbalance between actual and desired states. External stimuli is a pic, internal stimuli is a past experience, good or bad. Recognition of unfulfilled wants- when a product isn't performing properly, when consumer is running out of product, when another product is better than one being used. Info search- internal (memory) and external (tv). EVOKED SET (consideration set)- group of brands, resulting from an information search from which a buyer can choose. Evaluation of alternatives- rank attributes by importance, analyze product attributes, use cut off criteria. Post purchase behavior- Cognitive dissonance inner tension that a consumer experiences after recognizing an inconsistence between behavior and values or opinions. Consumers try to reduce dissonance by justifying their decision. Factors determining the level of consumer involvement- previous experience, interest, perceived risk of negative consequence, situation, social visibility. Underlying cultural, social, individual, and psychological factors strongly influence the decision process. Culture play deepest part of a persons consumer behavior, culture is pervasive, functional, learned, and dynamic, and the most defining element of a culture is values. Marketers are interested in social class for 2 reasons, Social class often indicates which medium to use for advertising, and knowing what products appeal to which social classes. Reference groups- a group in society that influences an individual purchasing behavior. Primary membership group- a reference group with which people interact regularly in an informal, face to face manner. Secondary membership group- A reference group with people associate less consistently and more formally that a primary such as a club, pro 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. Reference groups have 3 implicatons- serve as info sources and influence perception, affect individual aspiration levels, their norms either constrain or stimulate consumer behavior. Ch 6 Business products- used to manufacture other products, become part of another product, aid the normal operations of an organization, are acquired

for resale without change in form. Internet Marketing opportunities- increase efficiency, reduce cost, improve customer service, create 1to1 relationships, introduce new products, expand markets. Benefits of marketing on the net- lower prices, greater selection of products and vendors, access to customer and product sales data, around the clock ordering and customer service, lower cost, customized products. Strategic alliance- 2 companies come together *Always maintain control of your customer list* Some alliances are formed to achieve economies of scale, and to leverage what they have. Keiretsu- a network of interlocking corporate affiliates... a bunch of companies linked to holding companies. North American Industry Classification System (NAICS)- A detailed numbering system developed by the US, Canada, and Mexico, to classify North American business establishments by their main production processes. Derived demand- the demand for business products. Inelastic demand- an increase or decrease in the price of the product will not significannot

ly affect demand for the product. Joint Demand- the demand for two or more items used together in a final product. Fluctuating demand Bull Whip Theory/ Multiplier effect- Phenomenon in which a small increase or decrease in the consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product. Nature of Buying- business buyers usually approach purchasing rather formally. Reciprocity- a practice where business purchaser choose to buy from their own customers. Type of business products- major equip, accessory equip, raw materials, component parts, processed materials, supplies, business services. OEM- means original equipment manufacturer. OEMs buy business goods that they incorporate into the products that they produce for eventual sale to other producers or to consumers. Buying Center-initiator, influencers, gatekeepers (most important decide what goes through) decider, purchaser, users. Evaluation Criteria- Price, service, quality(most important). Buying Situations- New buy, modified rebuy, straight rebuy. CH7: Importance of market segmentation- Markets have a variety of product needs and preferences, marketers can better define customer needs, decision makers can define objectives and allocate resources more accurately. To be useful a segmentation scheme must have segments meeting 4 criteria: Substantiality, identifiably and measurability, accessibility, responsiveness. Benefits of Regional segmentation- New ways to generate sales in sluggish and competitive markets, Scanner data allow assessment of best selling brands in region, Regional brands appeal to local preferences, React more quickly to competition. Demographic segmentation- markets by age, gender, income, ethnic background, and family life cycle. Psychographic segmentation- Market segmentation on the basis of personality, motives, lifestyles, and geodemographics. Lifestyle segmentation- times spent, importance of things, beliefs, socioeconomic characteristics. 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% of the demand. Company characteristics such as geographic location, type, size, and product use can be important segmenting variables. Buying processes- how much they buy two profiles of this, satisfiers- 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. Three general strategies for selecting target markets- undifferentiated, concentrated, and multi segment targeting. Undifferentiated Targeting- marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix. Concentrated targeting strategy- a strategy used to select one segment of a market for targeting marketing efforts. Multisegment targeting strategy- A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each. Cannibalization- a situation that occurs when sales of a new product cut into sales of a firms existing products. Positioning- developing a specific marketing mix to influence