Consumer Behavior Test 1 (Chapter 1-4)

Consumer Behavior as a field of study

study of consumers as they go about the consumption process; the scientific study of how consumers seek value in an effort to address real needs.

psychology

study of human reactions to their environment

Economics

study of production and consumption

cognitive psychology

study of the intricacies of mental reactions involved in information processing.

social psychology

study that focuses on the thoughts, feelings, and behaviors that people have as their interact with other people.

researcher dependent

subjective data that requires a researcher to interpret the meaning

Customer Relationship Managment

systematic information management system that collects, maintains, and reports detailed information about customers to enable a more customer-oriented managerial approach.

Big data

term used to represent the massive amount of data available to companies, which can potentially be used to predict consume behavior.

predictive analytics

the application of statistical tools in an effort to discover patterns in data that allow prediction on consumer behavior

internet of things

the automatic recording of data from everyday products that signal consumer patterns and behavior

sharing economy

the global consumer trend toward rental rather than ownership

Zero moment of truth

the point when a shopper moves from passive to active and seeks out exchange alternatives

value co-creation

the realization that a consumer is necessary and must play a part in order to product value.

sociology

the study of groups of people within a society, with relevance for consumer behavior, because a great deal of consumption takes place within group settings or is affected by group behavior

neuroscience

the study of the central nervous system including brain mechanisms associated with emotion

collaborative consumption

the term used for a rental transaction activity that is consumer to consumer, rather than business to consumer, or business to business

Resource-Advantage Theory

theory that explains why companies succeed or fail; the firm goes about obtaining resources from consumers in return for the value the resources create

grounded congnition

theory that suggests that bodily sensations influences thoughts and meaning independent of effortful thinking

internal influences

things that go on inside the mind and heart of the consumer or that are truly a part of the consumer psychologically

situational influences

things unique to the time or place that can affect consumer decision making and the value received from consumption

cognition

thinking or mental processes that go on as we process and store things that can become knowledge

perceptual map

tool used to depict graphically the positioning of competing products

hedonic value

value derived from the immediate gratification that comes from some activity

marketing strategy

way a company goes about creating value for customers

corporate strategy

way a firm is defined its general goal

product poisioning

way a product is perceived by a consumer

Consumer (customer) Orientation

way of doing business in which the actions and decision making of the institution priorities consumer value and satisfaction above all other things.

marketing tactics

ways marketing management is implemented, involves price, promotion, product and distribution decision.

netnography

a brand of ethnography that studies the behavior of online cultures and communities

marketing myopia

a common condition in which a shortsighted company views itself in a product business rather than in a value-benefits-producing business

attribution

a part, or tangible feature, of a product that potentially delivers a benefit of consumption.

value

a personal assessment of the net worth obtained from an acivitiy

strategy

a planned way of doing something to accomplish some goal

want

a specific desire representing a way a consumer may go about addressing a recognized need.

Market Orientation

organizational culture that embodies the importance of creating value for customers among all employees.

argumented product

actual physical purchase plus any services such as installation and warranties necessary to use the product and obtain its benefits

service

an organizations efforts and resources applied toward value creation

Stakeholder Marketing

an orientation in which firm recognize that more than just the buyer and seller are involved in the marketing process, and a host of primary and secondary entities affect and are affected by the value creation process.

quantitative research

approach that addresses questions about consumer behavior using numerical measurement and analysis tools

interpretive research

approach that seeks to explain the inner meaning and motivations associated with specific consumption experiences

product orientation

approach where innovation is geared primarily toward making the production process as efficient and economic as possible.

customer lifetime value (CLV)

approximate worth of a customer to a company in economic terms; overall profit ability of an individual consumer.

total value concept

business practice wherein companies operate with the understanding that products provide value in multiple ways

one-to-one marketing

plan where in different product is offered for each individual customer so that each customer is treated as a segment of one

undifferentiated marketing

plan where in the same basic product is offered to all customers.

anthropology

field of study involving interpretation of relationships between consumers and the things they purchase, the products the own, and the actives which they participate

differentiated marketing

firms that serve multiple market segments, each with a unique product offering.

utilitarian value

gratification derived because something helps a consumer solve a problem or accomplish some task

target market

identified segment or segments of a market that a company serves

niche marketing

plan wherein a firm specialized in serving one market segment with particularly unique demand characteristics.

market segmentation

seperation of a market into groups based on the different demand curves associated with each group.

blue ocean strategy

positioning a firm far away from competitors positions so that it creates an industry of its own and, at least for a time, isolates itself from competitors

benefits

positive results of consumption experiences

product

potentially valuable bundle of benefits.

Consumer Behavior

set of value-seeking activities that take place as people go about addressing their real needs.

external influences

social and cultural aspects of life as a consumer

Consumption

process by which consumers use and transform goods, services, or ideas into value.

exposure

process of bringing some stimulus within proximity of a consumer so that the consumer can sense it with one of the five human sense.

attention

purposeful allocation of information-processing capacity toward developing an understanding of some stimulus

ethnography

qualitative approach to studying consumers that relied on interpretation of artifacts to draw conclusions about consumption

phenomenology

qualitative approach to studying consumers that relies on interpretation of the lived experience associated with some aspect of consumption.

perception

consumer's awareness and interpretation of reality

elasticity

reflects how sensitive a consumer is to changes in some product characteristic.

_____ refers to the way a product is perceived by a consumer and can be represented by the number and types of characteristics that consumers perceive. A. Positioning B. Cognition C. Value D. Affect

A. Positioning

Mr. Presley always wanted to have a restaurant of his own, but the intense competition in his city discouraged him from opening one. After a lot of research, he decided to open a café near a hiking trail. His café gained popularity among hungry trekkers and travelers as his was the only eatery for miles. Which of the following strategies did Mr. Presley implement to start his business? A. The blue ocean strategy B. The cannibalization strategy C. The multicultural-marketing strategy D. The absorption pricing strategy

A. The blue ocean strategy

_____ is at the heart of experiencing and understanding consumer behavior. A. Value B. Demand C. Relationship D. Need

A. Value

A combination of product characteristics that provide the most value to an individual consumer or market segment is referred to as _____. A. an ideal point B. the utilitarian value C. the marketing mix D. a touch point

A. an ideal point

Product differentiation is a marketplace condition in which: A. consumers do not view all competing products as identical to one another. B. companies advertise different features of the same product while selling it to different consumers. C. companies treat each category of their products differently in terms of pricing and positioning. D. consumers view the same products differently when they are sold through different channels.

A. consumers do not view all competing products as identical to one another.

Mark, a researcher, visits the local supermarket to study and understand people's consumption patterns by observing their shopping carts. Mark is using the _____approach to interpretive research. A. ethnographic B. quantitative C. phenomenological D. pragmatic

A. ethnographic

Seafarm Fresh Inc., a packaged seafood company, lost a part of its market share when a competitor launched a pickled version of seafood products. Now, to recapture the market share, the company is offering pickled seafood at a lesser price than its competitor. This measure undertaken by Seafarm Fresh Inc. is an example of _____. A. marketing tactics B. corporate value C. corporate strategy D. marketing myopia

A. marketing tactics

Abraham conducts a research on how a new product captures the attention of consumers. His study concludes that the way a product is advertised has significant impact on buyers' perception of the product. If a buyer relates to an advertisement, the chances that the person may purchase the product are higher. In this scenario, which field of study did Abraham apply to understand consumer behavior (CB)? A. Geodemographics B. Cognitive psychology C. Social psychology D. Economics

B. Cognitive psychology

In the context of Consumer Value Framework (CVF), which of the following is an external influence? A. Attitudes B. Cultural values C. Emotional intelligence D. Lifestyle

B. Cultural values

In the context of technological changes, which of the following is true of big data? A. It is collected through case analysis and focus group interviews. B. It can potentially be used to predict customer behaviors. C. It relies on interpretation of artifacts to draw conclusions about consumption. D. It explains the inner meanings associated with specific consumption experiences.

B. It can potentially be used to predict customer behaviors.

Which of the following is a defining characteristic of a company that practices the total value concept? A. It focuses primarily on ensuring a high-quality relationship with the customers. B. It operates with the understanding that products provide value in multiple ways. C. It views itself competing in a product business rather than in a benefits-producing business. D. It focuses on promoting and supporting social causes as a way of serving the society and adding value to their products.

B. It operates with the understanding that products provide value in multiple ways.

Marketing myopia is a condition in which a company: A. launches its product without thorough market research or study of consumer behavior. B. views itself competing in a product business rather than in a value- or benefits-producing business. C. targets the wrong set of customers to market their products. D. invests in the growth of all internal departments but does not allow sufficient funds for successful marketing.

B. views itself competing in a product business rather than in a value- or benefits-producing business.

product differentiation

marketplace condition in which consumers do not view all competing products as identical to one another

Which of the following statements is true of the changing demographics in the Western world? A. Household size is increasing throughout most of Western culture. B. Families typically have the working dad and the stay-at-home mom. C. Households increasingly include two primary income providers. D. European families are averaging two children per family.

C. Households increasingly include two primary income providers.

Which of the following is true of resource-advantage theory? A. It highlights the benefits of catering to niche customers. B. It states that companies exist only to maximize shareholder returns. C. It explains why companies succeed or fail. D. It assists companies in managing their finances.

C. It explains why companies succeed or fail.

_____ focuses on the thoughts, feelings, and behaviors that people have as they interact with other people. A. Theoretical psychology B. Forensic psychology C. Social psychology D. Cognitive psychology

C. Social psychology

qualitative research tool

means of gathering data in a relatively unstructured way, including case analysis, clinical interviews and focus group interviews.

Which of the following is true of stakeholder marketing? A. It solely caters to the interests of the shareholders of a company. B. It represents a narrower focus than a market orientation. C. In stakeholder marketing, the value equation cannot be altered in any way. D. In stakeholder marketing, even secondary stakeholders can alter the value equation.

D. In stakeholder marketing, even secondary stakeholders can alter the value equation.

marketing

multitude of value-producing seller activities that facilitate exchanged between buyers and sellers, including production, pricing, promotion, distribution, and retailing.

David designs customized automobiles for his clients. He meets them to understand their unique requirements and creates models that fit their specifications. He has designed and sold hundreds of customized vehicles, each distinctive in its own way. In this scenario, which of the following marketing plans is David using? A. Concentrated marketing B. Undifferentiated marketing C. Mass marketing D. One-to-one marketing

D. One-to-one marketing

Ramona is assisting the marketing research team of her company to come up with a new strategy based on customer lifetime value (CLV). She has considered the equity a good customer can bring in the form of positive referrals and word of mouth. What else does Ramona need to add to this equity to calculate CLV? A. The net present value of the number of products a consumer purchases in a year B. The average annual income of a consumer C. The average expenditure budget of a consumer based on buying history D. The net present value of the stream of profits over a customer's lifetime

D. The net present value of the stream of profits over a customer's lifetime

A product is defined as: A. a collection of tangible features. B. a collection of attributes. C. a specific way to address a recognized need. D. a potentially valuable bundle of benefits.

D. a potentially valuable bundle of benefits.

In the basic consumption process, the acting out of a decision to give something up in return for something perceived to be of greater value is referred to as a(n) _____. A. need B. want C. reaction D. exchange

D. exchange

cost

negative result of consumption experiences

exchange

acting out of the decision to give something up in return for something perceived to be of greater value.

sensory marketing

actively seeking to engage customers senses as the primary aspect of the value proposition.

Relationship marketing

activities based on the belief that the firm's performance is enhanced through repeat business.

Learning

change in behavior resulting from some interaction between a person and a stimulus

individual differences

characteristics traits of individuals, including demographic, personality and lifestyle

ideal point

combination of product characteristics that provide the most value to an individual consumer of market segmentation

marketing mix

combination of product, pricing, promotion, and distribution strategies used to implement a marketing strategy

Consumer value framework

consumer behavior theory that illustrates factors that shape consumption-related behaviors and ultimately determine the value associated with consumption.

sensation

consumer's immediate response to a stimulus

Relationship quality

degree of connectedness between a consumer and a retailer, brand, or service provider

Touchpoints

direct contact between the firm and customer.

social envionrment

elements that specifically deal with the way other people influences consumer decision making and value.

affect

feelings associated with objects or activities.