MKTG 330 Exam 2
Routinized Response Behavior
Frequently purchased, low-cost, little search-and-decision effort Ex: buying a coke
Consumer Market (B2C)
Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits
Family Influences
Purchases are for entire family to use and whole family participates in decision making process
Personality
There is a weak association between personality and buying behavior
social influences
roles, family influences, reference groups, opinion leaders, digital networks, social classes, culture/subcultures
straight rebuy
routine, same purchase just buying more ex: buying more of the same computers for the new staff
requirements or characteristics of a market
A market is a group of people, individuals or organizations, who 1. Have needs for products in a product class and 2. Have the ability, 3. Willingness, 4. And authority to purchase such products
homogenous markets
A market in which a large proportion of customers have similar needs for a product
users
the person who consumes or uses the product or service purchased by the buying center ex:
modified rebuy
upgrading to a new version or model, similar but have changes ex: getting all new updated apple computers
negotiation
used for one-time projects such as buildings, capital equipment, and special projects
What is cognitive dissonance?
-A buyer's doubts shortly after a purchase about whether the decision was the right one -Often occurs after expensive, high-involvement purchases
Attitudes
-An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea -Cognitive, Affective, Behavioral
Self-Concept
-Buyers purchase products that reflect and enhance their self-concepts and purchase decisions are important to the development and maintenance of a stable self-concept
conditions for marketing segmentation to be successful
-Customer's needs must be heterogeneous -Segments must be identifiable and divisible -Segments must be comparable to one another with respect to estimated sales potential, costs and profits -One segment must show enough profit potential to justify developing a special marketing mix -The firm must be able to reach the chosen segment with a particular marketing mix
government
-Federal, state, county, and local governments that buy goods and services to support their internal operations and provide products to their constituencies. -The types and quantities of products government markets purchase reflect societal demands on government agencies. -Government markets are complex but can be lucrative.
What are the five major stages of the consumer buying decision making process?
1. Problem Recognition Stage 2. Information Search 3. Evaluation of Alternatives 4. Purchase Stage 5. Postpurchase Evaluation Stage
three most widely recognized types of consumer decision making
1. Routinized Response Behavior 2. Limited Decision Making 3. Extended Decision Making
What are the stages of the buying business decision process in order?
1. problem recognition 2. specifications 3. potential products 4. selection 5. evaluation
Selective distortion
An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs
What is an example of reciprocity in business markets?
An industrial buying practice in which two organizations agree to purchase each others products and services.
Motive
An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals
Consumer Misbehavior
Behavior that violates generally accepted norms of a particular society like shoplifting, organized retail crime, consumer fraud, pirating, abusive consumers
attributes of business customers
Better informed, detailed information, technology specifications, goals of purchasing agent, partnerships
What are some examples of products or situations for which you might engage in impulse buying?
Buying a candy bar while waiting in line at the grocery store. -If you were satisfied, chances are, you will have those impulse buys again.
Learning
Changes in an individual's thought processes and behavior caused by information and experience
four main categories of segmentation variables
Demographics, geographics, psychographics, behavioristic
market segment profiles
Describes the similarities of potential customers within a segment and explains the differences among people and organizations in different segments
A group of people that lacks any of the four requirements does not constitute a market
Ex: Teenagers may have the desire, the money and the willingness to buy alcohol but the law prevents them from having the authority to purchase alcohol
different methods a company can use to forecast sales
Executive Judgment Surveys Time Series Analysis Regression Analysis Market Tests
Level of Involvement with Products
Individual intensity of interest in a product and the importance of the product for that person
Producer
Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations ex: Grocery store: plastic bags, scanners
market segments
Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs
Business Market (B2B)
Individuals, organizations or groups that purchase a specific kind of product for resale, direct use in producing other products or use in general daily operations
Within the information search step of the consumer buying decision process, what two primary aspects exist?
Internal Search -Past experiences -Memory External Search -Consumer reports -Advertising -Word of mouth -Internet -Social Media
Opinion Leader
Likely to be most influential when consumers have high product involvement but low product knowledge
Patronage Motives
Motives that influence where a person purchases products on a regular basis
institutional
Organizations with charitable educational, community, or other non-business goals -Marketers may use special marketing activities to serve institutions because they have different goals and fewer resources than other markets. ex: churches, colleges, hospitals, and civic clubs.
What are the five levels of needs in order in Maslow's Hierarchy of Needs?
Physiological, safety, social, esteem, self-actualization
Limited Decision Making
Prior experience with products or services, rely more on personal knowledge, majority of customer decisions Ex: buying jeans or clothes
What are the four categories business markets are typically divided into?
Producer, reseller, government, institutional
High-involvement products
Products that are visible to others and/or are expensive (clothing, furniture, cars, healthcare)
Low-involvement products
Products that tend to be less expensive and have less associated social risk (buying groceries)
Selective retention
Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
The Perception Process
Selective exposure, Selective distortion, Selective retention
What are the three major categories of influences on the consumer buying decision process?
Situational, psychological, and social
Lifestyles
Strongly influences the buying decision process and many marketers segment markets by lifestyle -Lifestyles influence consumers' product needs, brand preferences, types of media used, and how and where they shop
Maslow's Hierarchy of Needs
The five levels of needs that humans seek to satisfy, from most to least important
What is the buying center?
The group of people in an organization that participates in the buying process. -users, influencers, buyers, deciders, gatekeepers
Selective exposure
The process by which some inputs are selected to reach awareness and others are not
the three main targeting strategies to find a target market
Undifferentiated, concentrated, differentiated
Extended Decision Making
Unfamiliar, expensive, or infrequently bought products Ex: buying a new car or house
seller
Wholesalers and retailers that buy finished goods and resell them for a profit ex: Home Depot, PetsMart
reference group
a group that a person identifies with so strongly that he or she adopts the values, attitudes and behavior of the group members
concentrated
acknowledge there are some differences, characteristics of specific customers that are grouped together that are targeted Ex: Tesla cars, Mont Blanc pen
evaluation
actual product base, did the product meet those needs and specifications or does it need to be altered
derived
as consumers demand more so does the business demand ex: Sales of computers are increasing. Intel markets its computer chips to computer manufacturers worldwide.
new-task purchase
buy item for new tasks
geographic
city size, region, state size, climate
What are the types of demand for business products?
derived, inelastic, joint, fluctuating
What are the different buying methods?
description, inspection, sampling, negotiation
the purpose of marketing segmentation
divide a total market to enable a marketer to develop a more precise marketing mix.
behavioristic
end use, usage, brand loyalty
Demographics
gender, age, race
joint
if the product demand increases so does the product components ex: if tequila goes up so do the corks for bottles
fluctuating
increase consumer demand by changing prices ex: A manufacturer of snow tires provides a discount on its products during the summer months.
inspection
industrial equipment, used vehicles, and buildings, have unique characteristics and may vary with regard to condition, make sure it meets needs
potential products
looking at options they have and evaluating what would work for them
What characteristics are family life cycle most typically based on?
marital status and ages of children
the process of dividing a total market into market groups because people within each group have relatively similar product needs
marketing segmentation
types of reference groups
membership: group where person belongs aspirational: group where person wants to belong disassociate: group person doesn't want to belong
What are the three main types of business purchases?
new-task purchase, straight rebuy, modified rebuy
specifications
organization typically putting in request for proposal and getting input back to get what they need for the service or product
psychological influences
perception, motives, learning, attitudes, personality & self-concept, lifestyle
psychographics
personality, motives, lifestyle
Situational influences
physical surroundings, social surroundings, mood of consumer, time dimension, purchase reason
sampling
portion of the product represents whole lot, get a quality from portion
description
quality or grade, the products being purchased are standardized based on certain characteristics
problem recognition
realize theres a problem that needs to be solved -actual state-->desired state
differentiated
recognizing different groups, don't want to target just one group but multiple. Develop different marketing mixes. Ex: lululemon, iPhone
inelastic
slight price fluctuations won't really change the demand for business customers ex: Fleetwood, an RV manufacturer, is constructing its newest model of RV. The windshield wipers for the RV has risen in price.
gatekeepers
the buying center participant who controls information or access to decision makers and influencers ex: Because the company gets a lot of bids, Martha screens salespeople before they can talk to the purchasing department
influencers
the buying center participant who helps develop the specifications and evaluate alternative products for possible use. ex: Sam is a trusted manager who has vast knowledge of construction. He gives the purchasing department advice about what to look for.
buyers
the buying center participant who select the suppliers and negotiate the terms of the purchases. ex:
Many aspects of consumer buying decisions are affected by...?
the individual's level of involvement
Undifferentiated
very few differences within the market needs, targets all consumers Ex: baking soda, black pepper
selection
what venders would you choose to work with that would work best
deciders
who actually choose the products and vendors (when, how and what to buy) ex: Sam is a trusted manager who has vast knowledge of construction. He gives the purchasing department advice about what to look for.