MKT-378-001 Test #3 JSU (Dr. Coco)
What is the FOURTH step in the approach for developing situation-based marketing strategies?
Evaluate each cell's potential (ie: sales volume, price level, cost to serve, competitor strength, etc.)
Define "Spillover sales"
Sales of additional items to customers who only came to purchase one advertised item
Define "Ongoing search"
Searching for information for possible later use, and because it's fun
Explain the "Physical surroundings" dimension of consumer behavior.
Configurations of merchandise and other materials surrounding the consumer (ie: decor, colors, music, etc.)
In what situation do marketers attempt to place their ads in appropriate media contexts to enhance their effectiveness?
Communications situation
What are the 5 appropriate sets of product/brand alternatives?
-Awareness set -Unawareness set -Evoked set -Inert set -Inept set
Consumer behavior occurs within which 4 broad categories/types of situations?
-Communications situation -Purchase situation -Usage situation -Disposition situation
Explain how disposition decisions can affect a firm's marketing strategy.
-Consumers feel they need to "get their money's worth" before purchasing a new item -Disposition sometimes must occur before acquiring a new item -Consumers who sell, trade, or give away used products can lead to a large used-product market, which reduces the market for new products -The U.S. is not a throwaway society, meaning many Americans care about how their purchases affect waste -Environmental disposition decisions benefit society as a whole, and the firms which are part of that society
Stacy owns a retail store specializing in home decor products. She is considering using price advertising but is not sure what she needs to consider before doing so. She knows you are a marketing major and has asked for your advice. Discuss three decisions she needs to consider when using price advertising.
-How large a price discount should be used? -Should comparison or reference prices be used? -What verbal statements should accompany the price information?
What characteristics of the "Market" factor create costs and benefits of external searches?
-Information availability -Store concentration -Number of alternatives -Price RANGE
What are the 4 factors which influence the costs and benefits of external search?
-Market characteristics -Product characteristics -Consumer characteristics -Situation characteristics
List the 6 sources of information available to consumers and whether they are INTERNALLY or EXTERNALLY searched.
-Memory (Internal) -Personal sources (External) -Independent sources (External) -Marketing sources (External) -Internet (External) -Experiential sources (Both)
What are the 3 types of consumer decision making?
-Nominal -Limited -Extended
What are the 4 attributes affecting outlet selection? Give an example of each.
-Outlet image (Store image) -Outlet location (Gravitational model) -Retail brands (Store brands) -Retail advertising (Spillover sales)
What is the difference between PURCHASE involvement and PRODUCT involvement?
-PURCHASE involvement: The need to temporarily consider a particular purchase -PRODUCT involvement: Loyalty to a product/brand
The 4 consumer behavior situations (Communication, purchase, usage, and disposition) can be determined by which 5 dimensions?
-Physical surroundings -Social surroundings -Temporal perspectives -Task definition -Antecedent states
What characteristics of the "Situation" factor create costs and benefits of external searches?
-Pleasant surroundings -Social surroundings -Time availability -Physical/mental energy -Purchase for self
What characteristics of the "Product" factor create costs and benefits of external searches?
-Price -Differentiation -Positive products
What are the 5 stages to the consumer decision process?
-Problem recognition -Information search -Alternative evaluation -Purchase -Post-purchase
What characteristics of the "Consumer" factor create costs and benefits of external searches?
-Social status -Age and household life cycle -Learning and experience -Shopping orientation -Perceived risk -Product involvement
What are the 5 types of retailing?
-Store-based retailing -Internet retailing -Interactive ads/programming -Mobile services -Mobile locations
Discuss the types of information sought by consumers.
-The appropriate criteria for solving a problem -The existence of alternative solutions -The characteristics of each alternative solution
What 4 factors can create post-purchase dissonance?
-The degree of commitment/irrevocability -The importance of the decision -The difficulty of choosing between alternatives -The individual's tendency of experiencing anxiety
Explain the "Purchase" category of consumer behavior.
A consumer is MORE likely to buy when they are with their children or trying to impress someone. They are LESS likely to buy if they are without their children, in a bad mood, or there are long lines (PURCHASING the product)
External searches generally involve ONLY _____ acquiring information.
Actively
Explain the "Communications" category of consumer behavior.
Ad placement in media (COMMUNICATING the product to consumers)
Define "In-home shopping"
All forms of non-store retailing
Define "Store brands"
All items carried within a store are the store's own brand
As the consumer moves from a very LOW level of involvement with their purchase to a very HIGH level of involvement, decision making becomes increasingly ______.
Complex
Define the "Unawareness" set of alternatives.
Alternatives of which the consumer DOES NOT KNOW about
Define the "Awareness" set of alternatives.
Alternatives of which the consumer is KNOWS about
Define the "Inept" set of alternatives.
Alternatives which the consumer AVOIDED
Define the "Evoked" set of alternatives.
Alternatives which the consumer CONSIDERED
_____ is the process managers use to manipulate the physical retail environment to create specific mood responses in shoppers.
Atmospherics
The segment of mobile phone users who are older and not into mobility or technology is known as _____.
Basic planners -- They use cell phones for basic calling and emergencies
Disposition of the product or the product's container may occur _____, _____, or _____ product use.
Before; during; after
Knowledge and research have a _____-_____ relationship
Bell-shaped
Services that aid consumers in their search and decision making on the Internet are known as _____.
Bots
Which type of nominal decision is characterized by a fairly high degree of product involvement but a low degree of purchase involvement?
Brand loyal decision
Which of the following statements is FALSE regarding crowding as a situational characteristic? A) Crowding generally produces negative outcomes for both the retail outlet and the consumer B) Most consumers find feelings of crowding to be unpleasant and will spend less time in the store C) Crowding is unpleasant regardless of a consumers' culture D) Crowding causes most consumers to spend more money E) Most consumers find crowded feelings to be unpleasant
C) Crowding is unpleasant regardless of a consumers' culture
The situation in which consumers receive information has an impact on their behavior and is referred to as the ________ situation.
Communications
What is the THIRD step in the approach for developing situation-based marketing strategies?
Construct a person-situation segmentation matrix (The rows are the situations, the columns are the users, and each cell contains the benefits sought)
Define "Store image"
Consumers' perceptions of specific retail outlet
Hailey purchased furniture for her living room and spent quite a bit of money. After she purchased it, she started regretting that she spent so much, and she wasn't sure she liked the furniture. To make herself feel better, she told herself that the other furniture she was considering really wasn't that good and probably would not last as long as the furniture she ended up purchasing. What is Hailey using to reduce her post-purchase dissonance?
Decreasing the desirability of rejected alternatives
Candice is on a diet and wants to lose 10 pounds. She wants to be thin right now, which represents her _____.
Desired state
What is the FIFTH step in the approach for developing situation-based marketing strategies?
Develop and implement a marketing strategy for each of the cells which offer sufficient profit potential
Define "Shopping orientation"
Different shopping styles put emphasis on different activities/motivations, known as the consumers' shopping orientation
Define the 1st step in the consumer decision process, "Problem recognition"
Discrepancy between a consumer's actual and desired state, which activates the decision process
Define "NOMINAL decision making"
Doesn't involve much thought; out of habit; no alternative options; all internal
Which of the following is a concern marketing managers have related to problem recognition? A) Developing the marketing mix to solve consumer problems B) Suppressing problem recognition among consumers C) Helping consumers recognize problems D) Discovering consumer problems E) All of the above
E) All of the above
Which of the following is a variable that influences brand decisions inside a retail outlet? A) Price reductions B) Point-of-purchase materials C) Stockout situations D) Outlet atmosphere E) All of the above
E) All of the above
Which of the following is TRUE regarding the Internet as a source of information? A) Online sources are viewed as valuable B) Online information is expected C) Online sources reduce a salesperson's role D) Online information boosts offline sales E) All of the above are true
E) All of the above are true
For which type of decision making is external information search relatively important?
EXTENDED decision making
Clara was shopping with her friend, Jane, when they both went into a drug store. Clara needed to buy medication for hemorrhoids, but she was reluctant to do so in front of Jane. Which emotion was Clara probably experiencing in this situation?
Embarrassment
Which of the following is an approach to problem identification? A) Problem analysis B) Product analysis C) Activity analysis D) Human factors research E) Emotion research F) All of the above
F) All of the above
T/F) Generic and selective problem recognition have nothing to do with generic and selective demand.
False
T/F) Marketing strategy that focuses only on creating awareness is adequate.
False
T/F) Committed customers are LESS likely to forgive a product or service failure.
False -- Committed customers have an emotional attachment to the brand/firm and are MORE likely to forgive a product or service failure
T/F) Task definition is a consumption response.
False -- It is a situation characteristic
T/F) The only aspect of music that influences consumer behavior is tempo.
False -- Matching musical preferences to the target audience and creating arousal both influence consumer behavior as well
T/F) Individuals cannot "create" the situations they face.
False -- Most people create many of the situations they face
T/F) A recent study found that the number one reason consumers abandoned their online shopping carts was due to changing their mind.
False -- The number one reason was due to high handling/shipping costs
Explain the "Antecedent states" dimension of consumer behavior.
Features of the consumer which are not lasting characteristics (ie: moods)
Savannah works at the front desk at a Marriott Hotel. If a guest has a complaint, she is empowered to make amends up to a certain amount without her supervisor's approval. Savannah is known as a _____.
Frontline employee (They deal directly with consumers)
What is another name for "Nominal decision making?"
Habitual decision making
Marcie will soon be 50 years old, so to pamper herself, she decided to get a massage. With respect to the typology of service environments, this type of service would be categorized as _____.
Hedonic
Explain the "Usage" category of consumer behavior.
How, when, and where the product is consumed (USING the product)
Grant is the marketing manager for a consumer package goods manufacturer. He realizes that consumers use nominal decision making when purchasing his products. Explain how the marketing strategies and tactics he should use would differ if his company's brand is in the consumers' evoked set compared to when it is not.
If his company's brand was in the evoked set, consumers would actually consider his brand! And to make it even more likely they would choose his brand, he should implement more strategies and tactics to develop a COMPLETE evoked set.
Define "Unplanned purchases"
Impulse buying decisions
What are the 2 types of reference prices?
Internal & External
Once a problem is recognized, relevant information from long-term memory is used to determine if a satisfactory solution is known, what the characteristics of potential solutions are, what the appropriate ways to compare solutions are, and so forth. This is referred to as _____.
Internal search
Define "SELECTIVE problem recognition"
Involves a discrepancy which ONLY ONE brand can solve
Define "GENERIC problem recognition"
Involves a discrepancy which a VARIETY of brands can reduce
Define "EXTENDED decision making"
Involves extensive internal and external evaluation; lots of alternatives
What is Radian6?
It is a social listening tool under the Salesforce brand, which listens and analyzes to information being shared publicly online
Explain the retail gravitational model.
It's used to calculate the level of store attraction based on its size and distance from consumers
The top barriers to Internet shopping are _____ and _____.
Lack of touch; privacy concerns
The level of one's desire to resolve a certain problem depends on _____, _____, and _____.
Magnitude; importance; affordability
Which online shopping segment found by Experian is less likely than average to have bought online in the past 12 months and enjoys shopping?
Mall maniacs (They are middle income and like to try new things)
Stan was feeling very tired and hungry in the mid-afternoon, so he ate a Snickers candy bar. Stan is attempting to manage his _____.
Momentary condition
What reflects temporary states of BEING rather than temporary states of MIND?
Momentary conditions
A market research study asked consumers to rate themselves with respect to several adjectives, such as happy, cheerful, peaceful, sad, blue, and depressed. What is this research trying to assess?
Mood
What is the difference between "Multi-channel shoppers" and "Omni-channel shoppers?"
Multi-channel shoppers browse and/or purchase in more than one channel, and omni-channel shoppers browse and/or purchase in more than one channel SIMULTANEOUSLY
Explain the "Social surroundings" dimension of consumer behavior.
Other individuals present in the situation (ie: studying alone for a final, eating at a restaurant with a date, meeting for lunch with your boss, etc.)
Some consumers are highly susceptible to interpersonal influence, which is a _____.
Personality trait
_____ refers to the fact that repeat and particularly committed customers tend to buy the brand consistently rather than waiting for a sale or continually negotiating price.
Price premium
Define "Perceived risk" and explain why it's important.
Purchasing products involves the risk that they may not perform as expected. Consumers' perceptions will differ based on their past experiences and lifestyles. For this reason, perceived risk is both a consumer and product characteristic
Explain the "Task definition" dimension of consumer behavior.
Reason the consumption activity is occurring (ie: purchases for self-use or gift-giving)
Define "Post-purchase evaluation"
Recalling how the purchase went, based on customer service during and after the transaction
When a retailer represents a price as "regularly $15.99, now $9.99," the $15.99 is called the _____.
Reference price
What is another name for the "Retail gravitational model?"
Retail attraction model
Binge drinking among college students can be described as a(n) _____.
Ritual behavior
Giving out candy to children on Halloween, giving chocolate and roses to sweethearts on Valentine's Day, and wearing green and drinking green beer on St. Patrick's Day are all examples of _____.
Ritual situations
Richard is studying how various usage situations influence the consumption of his company's products. He conducted qualitative analyses (i.e., focus group discussions and depth interviews) as well as surveyed a larger sample of consumers to better understand and quantify how products are used and the benefits sought in the usage situation by the market segment. Richard is performing the first two steps in an approach to develop _____.
Situation-based marketing strategies
To understand a consumer's behavior, we must know about the _____, _____, and _____.
Situation; consumer; stimulus object
Radian6 is a leader in the field of _____ and _____.
Social media measurement; consumer problem discovery
Unsolicited e-mail that is a major concern and irritant is known as _____.
Spam
Kim did much of her Christmas shopping on the Internet last year. She enjoys buying online and does so frequently. She also likes going to the mall so she can see and try on the latest fashions. Kim represents which online shopper segment?
Status strivers (They like to browse/shop to keep up with new trends)
Many of you have probably heard of Banana Republic retail stores and perhaps have shopped there. Many of you may not know that the store used to look much different than it does today. It used to be more like an adventure, and the merchandise assortment was more appropriate for a safari. If you've ever seen an Indiana Jones movie, you can get a pretty good idea of what Banana Republic used to look like. The stores would have a jeep in the store, camouflage netting, and music from the 1940s playing. The inside had wooden beams and maps hung on the wall that looked like treasure maps. Much of the merchandise was accompanied by a sign that had a tale of some adventure associated with it. These physical features of the retail environment are referred to as the _____.
Store atmosphere
What is the SECOND step in the approach for developing situation-based marketing strategies?
Survey a sample of consumers to understand how the product is used and the benefits sought
Sandy uses online banking, and her bank charges her $4.99 per month. However, she has seen ads for a competing bank offering free online banking services. She'd like to switch, but she realized that it might be difficult to do because she has several of her bill payments set up as automatic debits. The cost of changing to another bank represents Sandy's _____.
Switching costs
Define "Actual state"
The condition a consumer PERCEIVES he is in currently
Define "Desired state"
The condition a consumer would LIKE to be in currently
Define "Active problem"
The consumer IS aware of or WILL BECOME aware of the problem
Define "Inactive problem"
The consumer is NOT aware of the problem
Define the "Inert" set of alternatives.
The consumers' BACKUP alternatives
Define "Post-purchase dissonance"
The doubt/anxiety which consumers may feel after making a difficult, relatively permanent purchase decision
Explain the "Temporal perspectives" dimension of consumer behavior.
The effect of time in the situation (ie: day, week, month, year, in a hurry, etc.)
Define "LIMITED decision making"
There are a few alternatives so a little internal and external consideration must be done
Explain the "Disposition" category of consumer behavior.
Throwing away, selling, buying another, etc. (DEPOSITING of the product)
John is a salesman and gave one of his customers an expensive watch. What is a likely reason John gave this gift?
To elicit a return favor
T/F) A consumer's desired state can be influenced by previous decisions.
True
T/F) Active and inactive are the 2 types of consumer problems.
True
T/F) Active problems require the marketer only to convince consumers that its brand is the superior solution.
True
T/F) Ad and brand attitudes are often influenced in a mood-congruent manner
True
T/F) INTERNAL searches can involve both ACTIVELY and PASSIVELY acquiring information.
True
T/F) If a customer is dissatisfied with a company's product, the company would prefer that he or she complains to the company.
True
T/F) Personal space and resulting crowding perceptions can vary from culture to culture.
True
T/F) Temporal perspective is a situational characteristic.
True
T/F) Under conditions of crowding, consumers tend to spend LESS time in the store and do NOT make more demands on the sales personnel.
True
What is the FIRST step in the approach for developing situation-based marketing strategies?
Use studies, discussions, interviews, and data to discover which situations influence the consumption of the product
The "second screen" refers to _____.
Using mobile devices while watching TV
T/F) Hank is seen by others as the go-to if they have questions related to finding good deals on the Internet. He likes to shop online because, to him, it's more fun than going to a store. To which online shopping segment does Hank belong?
Virtual shoppers
Define "EXTERNAL search"
When there is a problem and an individual has already performed an INTERNAL search, they begin to search for other independent sources and marketer information
Define "INTERNAL search"
When there is a problem, an individual searches their long-term memory for solutions
Ronald is dissatisfied with a product he has bought. What is the first decision Ronald will make with regard to his dissatisfying situation?
Whether or not to take any external action