PB Final Review

Self-concept

Affect how people interpret product meanings and use products.

Common cultural meanings

Affective and cognitive responses, behaviors, environmental factors

Form utility

Channels convert raw materials into finished goods and services in forms the consumer seeks to purchase. Physical features that allow a product to provide satisfaction.

Possession utility

Channels facilitate the transfer of ownership of goods to the consumer. Provided primarily through sales, allows the consumer to gain possession of products capable of providing satisfaction.

Time utility

Channels make goods and services when the consumer wants to purchase them. The inventory or primarily provided through storage.

The mature market

Consumers over the age of 55, among one of the most rapidly growing subcultures, have considerable discretionary income, has more time to enjoy entertainment and leisure activities, developing marketing strategies is difficult.

Cultural process

Describes how cultural meaning is transferred between locations by the actions of organizations and by individuals in the society.

Changing values in America

Can create problems for marketers, can create new marketing opportunities, and are usually accompanied by changes in behavior.

Competence

Frequently overlooked criterion in designing channels. The firms' ability to administer the channels, and perform channel tasks at all levels to ensure effective distribution to the consumer.

Baby boomers

People born between 1946-1964, largest and most affluent group in history, a blend of "me-generation" and old-fashioned family values, strongly influence the values of other groups, characterized as being health conscious, emphasize quality and is less interested with bargain hunting, most lucrative and challenging group for marketers.

Coverage

Seldom can every member of a selected target market receive sufficient marketing coverage to bring about an exchange. This refers to the number of outlets in a particular geographic area in which the product or service will be sold.

Rituals

Symbolic actions performed by consumers to create, affirm, evoke, or revise certain cultural meanings.

Commodity

The nature of the product or service offered to the consumer.

Ethnic subcultures

Those subcultures whose members' unique shared behaviors are based on a common racial, language, or nationality background.

Store contact

Involves the consumer locating, traveling to, and entering a store. A number of variables are concerned with obtaining these. Store location decisions are strongly influenced by heavy traffic and pedestrian patterns.

Teen market

Is gaining affluence while fluctuating in size, has a major influence on household purchases, owns discretionary purchasing power, forms brand loyalty.

Marketing implications

Marketers must determine which cross-cultural differences are relevant to their situations.

Materialism

A multidimensional value including possessiveness, envy, and non-generosity.

Social classes

A national status hierarchy by which groups and individuals are distinguished in terms of esteem and prestige. Upper, middle, working, lower.

Subculture

A segment of a larger culture whose members share distinguishing values and patterns of behavior.

Asian subculture

Fastes growing subculture in the United States. Requires special marketing attention. A prime market because they are more affluent than any other racial or ethnic group. Highest educated and the highest income group. Also the MOST diverse group.

Place utility

Goods and services are made available where the consumer wants to purchase them. Provided through transportation, that ensures that the product is available

Store atmosphere

Primarily involves affect in the form of in-store emotional states that consumers may not be fully conscious of when shopping. Environmental stimuli affect consumers' emotional states, which in turn affect approach or avoidance behaviors.

Consumer acculturation

Refers to how people acquire the ability and cultural knowledge to be skilled consumers in different cultures or subcultures.

Acculturation

Refers to how people in one culture or subculture understand and adapt to the meanings of another culture or subculture.

Culture

Refers to the mental frames and meanings that are shared by most people in a social group.

Consumer purchase mode

Refers to the method a consumer uses to shop and purchase form store or non store alternatives. Choices made among the various consumer purchase modes are influenced by many factors.

Store loyalty

Repeat patronage intentions and behavior. Strongly influenced by the arrangement of the environment, particularly the reinforcing properties of the retail store. A major objective in retail channel strategy and has an important financial impact.

The black subculture

The largest minority group in the U.S. Economic conditions vary considerably in different metropolitan areas. Marketers could further subdivide this group based on income, social class, or geographic region.

Core values

The abstract end goals that people strive to achieve in their lives. Knowing these held by people in a society can help marketers understand the basis for the customer-product relationship for those consumers.

Cognitive age

The age one thinks of oneself as being.

Cultural interpenetration

The amount and type of social interactions with people in the host culture.

Content of culture

The beliefs, attitudes, goals, and values held by most people in a society. It is the meaning of characteristics behaviors, rules, customs, and norms that most people follow.

Conditions

The current state of and expected changes in the economic, social, political, and legal environments in which the firm operates. This information is critical in channel design because channels typically involve long-term commitments by the firm that may be difficult to change.

E-commerce

The process by which buyers and sellers conduct exchanges of information, money, and merchandise by electronic means, primarily on the Internet. Often requires consumers to seek out marketers by going to particular websites.

Competitions

The size, financial and marketing strengths, and market share of a firm's competitors are major concerns in designing effective marketing strategies. For channel decisions, a key issue is how major competitors distribute products and how their distribution system influences consumers.

Control

There is a lot more of this in direct channels because no intermediaries are involved. Franchised channels also involve a greater amount of this than indirect channels because the franchiser places strong contractual constraints on the franchisee's operations.

Costs

These can be viewed as a constraint on the firm's ability to distribute products and services and to serve and influence consumers. Firms seek distribution systems that minimize total distribution costs at a particular level of customer service.

Goal of cultural analysis

Understand the culture meanings of concepts from the point of view of the consumers who create and use them.

Hispanic subculture

Unequally distributed across the US, diverse, three broad segments.

Store image

What consumers think about a particular store. It refers to the cognitions, or thoughts, the consumer associates with a particular store. Includes perceptions and attitudes based on sensations of store-related stimuli received through the five senses. This is a common goal of retailers. Channels of distribution have a very important impact on consumer affect, cognition, and behavior.