Marketing Exam 3
Blind Test
The consumer is not aware of the product's brand name
Nonsatisfaction
The consumer is not likely to feel disappointment or engage in complaint behavior
Many marketing efforts attempt to influence what?
The consumer's desired state
Switching Costs
The cost of finding, evaluating and adopting another solution
Affective Performance
The emotional response that owning or using the product or outlet provides
Two Stage Decision Process
The first stage is making the buyer's approved vendor list. A second stage is other decision rules/purchase decisions
Reference Group Infastructure
The flow of purchase influence within an industry
Metagoal
The general nature of the outcome being sought
Pragmatic Implications
The implied meanings (that are neither directly stated nor logically implied) that consumers derive when interpreting language in a "practical" way
Decision Making Units (DMUs)
The individuals (representing functional areas and management) within an organization who participate in making a given purchase decision
Purchase Involvement
The level of concern, or interest in, the purchase process triggered by the need to consider a particular purchase
What does retail attraction model show?
The level of store attraction
Organizational Culture
The lifestyle in that organization and how they make decisions and how they approach problems involving risk, innovation, and change
What does Limited Decision Making cover?
The middle ground between nominal decision making and extended decision making
Instrumental Performance
The physical function of the product
Problem Recognition
The result of discrepancy between a desired state and an actual state that is sufficient to arouse and activate the decision process
Desired State
The way an individual WANTS to feel or be at the present time
Actual State
The way an individual perceives his or her feelings and situations to be at the present time
Awareness Set
Those brands consumers are aware of
Inert Set
Those brands consumers are aware of and view in a neutral manner
Inept Set
Those brands consumers are aware of and view negatively
Evoked Set (Consideration Set)
Those brands or products one will evaluate for the solution of a particular consumer problem
Ongoing Search
To acquire information for possible later use and because the process itself is pleasurable
Selective Problem Recognition
Discrepancy that only one brand can solve
List the marketing strategies based on information searched patterns
-Maintenance Strategy -Disrupt Strategy -Capture Strategy -Intercept Strategy -Preference Strategy -Acceptance Strategy
List examples of what could classify a firm (firmographics)
-Size -Activities and objectives -Location -Industry -Industry Category -Organization Composition -Macrosegmentation
An important step in developing a marketing strategy for a particular segment is to specify the objectives being pursued. Several distinct possibilities exist:
1) Attract new users to the product category 2)Capture competitor's current customers 3) Engage current customers to use more 4) Encourage current customers to become repeat purchasers 5) Encourage current customers to become committed customers
Firms need to satisfy customer expectations by:
1) Creating reasonable thorough promotional efforts 2) Maintaining consistent quality so the reasonable expectations are fulfilled
What are the five key elements of relationship marketing?
1) Developing a core service or product around which to build a customer relationship 2) Customizing the relationship to the individual customer 3) Augmenting the core service or product with extra benefits 4) Pricing in a manner that encourages loyalty 5) Marketing to employees so they they will perform well for customers
What are five factors that determine whether a relationship will be transactional or relational?
1) Industry Structure 2) Decision Making Culture 3) Decision Making Structure 4) Risk Tolerance 5) Nature of the Purchase
Healthy business relationships depend on a number of value dimensions. What are they?
1) Legitimacy and Compatibility 2) Social Relations 3) Economic and Shared Values 4) Learning Bonds
The following represent the five primary sources of information available to consumers:
1) Memory of past searches, personal experiences, and low involvement learning 2) Personal sources such as family, friends, and others 3) Independent sources such as magazines, consumer groups, and government agencies 4)Marketing sources such as sales personnel, websites, and advertising 5) Experiential sources such as inspection and product trial
List the three purchasing situations
1) Straight Rebuy 2) Modified Rebuy 3) New Task
A consumer decision requires information on the following:
1) The appropriate evaluation criteria for the solution of the problem 2) The existence of various alternative solutions 3) The performance level or characteristics of each alternative solution on each evaluative criterion
The probability and magnitude of such dissonance (see post purchase dissonance) are a function of:
1) The degree of commitment or irrevocability of the decision 2) The importance of the decision to the consumer 3) The difficulty of choosing among the alternatives 4) The individual's tendency to experience anxiety
The level of one's desire to resolve a particular problem depends on two factors:
1) The magnitude of the discrepancy between the desired and actual state 2) The relative importance of the problem
A firm will attempt to influence generic problem recognition when the problem is latent or of low importance and one of the following exists:
1)It is early in the product life cycle 2)The firm has a high percentage of the market 3)External search after problem recognition is apt to be limited 4)It is an industry-wide cooperative effort
List the five steps of the organizational decision process.
1)Problem Recognition 2) Information Search 3) Evaluation and Selection 4) Purchase and Decision Implementation 5) Usage and Postpurchase Evaluation
Requires consumers to rank the criteria by importance and establish cutoffs to narrow down to 1
Elimination by aspect decision rule
Disjunctive Decision Rule
Establishes a minimum level of performance for each important attribute
Although consumers have a general sense of how important various criteria are, this can be influenced by numerous factors:
1)Usage situation 2) Competitive context 3) Advertising Effects
Brand Loyalty
A biased behavioral response expressed overtime by a decision making unit with respect to one or more alternative brands
Post Purchase Dissonance
A common consumer reaction after making a difficult, relatively permanent decision
Innovativeness
A consumer using a product in a new way
Bounded Rationality
A limited capacity for processing information
External Reference Price
A price provided by the manufacturer or retailer in addition to the actual current price of the product
Instrumental Motives
Activate behaviors designed to achieve a second goal
John Deere wants to understand how people maintain their lawns. What should they be studying?
Activity and Product analysis
Corrective Advertising
Advertising run by a firm to cause consumers to unlearn inaccurate information they acquired as a result of the firm's earlier advertising
Symbolic Performance
Aesthetic or image-enhancement performance
Evaluation of products based on how they make the users feel
Affective Choice
Relationship Marketing
An attempt to develop an ongoing, expanding exchange relationship with firm's customers
Surrogate Indicator
An attribute used to stand for or indicate another attribute
Rational Choice Theory implicitly or explicitly assumes a number of things about a consumer choice that are often not true. What are those three assumptions?
Assumption 1: Consumers seek one optimal solution to a problem and choose on that basis Assumption 2: Consumers have the skill and motivation to find the optimal solution Assumption 3: The optimal solution does not change as a function of situational factors such as time pressure, task definition, or competitive context
Children's Online Privacy Protection Act (COPPA)
Authorizes the FTC to develop specific rule to implement the provisions of the act
Involves tracking consumer click patterns on websites and using that information to display ads
Behavioral Targeting
What does CARU stand for?
Children's Advertising Review Unit
A term used to refer to turnover in a firm's customer base is?
Churn
Repeat Purchasers
Continue to buy the same brand though they do not have an emotional attachment to it
What is evaluation criteria typically associated with?
Desired Benefits
Generic Problem Recognition
Discrepancy that a variety of brands within a product category can reduce
Conjunctive Decision Rule
Establishes minimum required performance standards for each evaluative criterion and selects the first or all brands that meet or exceed these minimum standards
True or False: Purchase involvement is the same as product involvement
False. Purchase involvement is NOT product involvement
Committed Customer
Has an emotional attachment to a brand or firm
Attempts to increase capabilities in areas such as vision, response time, temperature and sound
Human Factors Research
External Search
If a solution is not reached through internal search, then the search process is focused on external information relevant to solving the problem
A consumer issue that they are not aware of
Inactive Problem
This is composed of those brands consumers are aware of and view negatively
Inept Set
Lead Users
Innovative organizations that derive a great deal of their success from leading change
What are two dimensions to performance?
Instrumental and Symbolic
Firmographics
Involve both organizational characteristics and characteristics of the composition of the organization
Relational Exchanges
Involve multiple events, occur over an extended period of time, involves significant investment by the buyer and seller, and involve high levels of loyalty
Transactional Exchanges
Involve single transactions, are short lived, involve few investments by the buyer and seller in the relationship and involve low loyalty
Extended Decision Making
Involves an extensive internal and external information search followed by a complex evaluation of multiple alternatives and significant post purchase evaluation
Limited Decision Making
Involves internal and limited external search, few alternatives, simple decision rules on few attributes, and little post purchase evaluation
Nominal Decision Making (Habitual Decision Making)
Involves no decision per se. They occur where there is low involvement with the purchase
Search Engine Optimization (SEO)
Involves techniques designed to ensure that a company's web pages are accessible to search engines and focused in ways to help improve the chances they are found
Attitude Based Choice
Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of the choice
Behavioral Targeting
Involves tracking consumer click patterns on a website and using that information to decide on a banner and placement
This involves internal limited search, few alternatives and decision rules on a few attributes
Limited Decision Making
Net Promoter Score
Measures the percentage of a firm's customer base left after subtracting out the firm's detractors
How likely is it that you would recommend us to a friend is used to calculate this_____
NPS
Consumption Guilt
Negative emotions or guilt feelings are aroused by the use of a product or service
This approach tends to occur when the buying decision is important and the choice is complex
New Task Buying
Product Nonuse
Occurs when a consumer actively acquires a product that is not used or used sparingly relative to potential use
Corporate Culture
Often used to refer to the organizational culture of the business firm
Internal Search
Once a problem is recognized, relevant information from long term memory is used to determine such things as (1) whether a satisfactory solution is known (2) what the characteristics of potential solutions are and (3) what appropriate ways exist to compare solutions
Inactive Problem
One of which the consumer is not aware of
Active Problem
One the consumer is aware of or will become aware of in the normal course of events
Macrosegmentation
Organizations with distinguishing firmographics can be grouped into marketing segments through this process
When was COPPA founded
Passed by congress in 1998
James decided to buy cereal when he saw some in the store and remembered he was out at home. This is an example of:
Reminder Purchase
Lexicographic Decision Rule
Requires the consumer to rank the criteria in order of importance
Elimination By Aspect Decision Rule
Requires the consumer to rank the evaluation criteria in terms of their importance and to establish a cutoff point for each criterion
Attribute Based Choice
Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands
Local Mobile Search
Searches for information from a mobile device pertaining to the current (or future planned) geographic location of a consumer
Memory, personal, independent, marketing experiential- what are these referred to as?
Sources of information
An attribute such as country of origin or price is used to indicate quality. What is this an example of?
Surrogate Indicator
Sensory Discrimination
The ability of an individual to distinguish between similar stimuli
Children's Advertising Review Unit (CARU)
The advertising industry's self-regulatory group dedicated to monitoring advertising to kids
Compensatory Decision Rule
The brand that rates highest on the sum of the consumer's judgements of the relevant evaluative criteria will be chosen
This process requires companies to make an approved vendor list and selects vendors based on some evaluative criteria
Two-stage decision process
Consummatory Motives
Underlie behaviors that are intrinsically rewarding to the individual involved
Evaluation Criteria
Various dimensions, features, or benefits a consumer looks for in response to a specific problem