Identifying and Understanding Customer Behavior

The Consumer Buying Process model does NOT include this step:

Reading Customer Reviews

The importance of both Lifestyle and Behavioral measurement factors are due to:

Lifestyle factors are concerned with the consumer's motivation and Behavioral factors measure consumer's activity

Both Lifestyle and Behavioral factors are important because:

Lifestyle factors are concerned with the consumer's motivation and Behavioral factors measure consumer's activity.

Behavioral factors are similar to Lifestyle factors but differ in:

Lifestyle factors concern understanding consumer's motivation.

Lifestyle data factors are related to Behavioral factors, but differ in:

Lifestyle factors concern understanding consumer's motivation.

Demographic measurements have one very specific problem which is:

Not all members of the segment would share common attitudes

Assume you planned to open a specialty butcher shop in your area, which of the following would best reflect your marketing mix (4Ps)?

Offering only premium meats cut to the customer's request on-site (product) at prices somewhat higher than grocery stores (price). Specials and discounts will be uncommon (promotion). The appeal of a specialty butcher shop is in providing products or services that aren't available in other outlets. Customers should be prepared to pay a premium for higher service levels.

Word of mouth buying information today is usually transmitted by:

Online Reviews

Which of the following shows an example of a consumer with conflicting needs?

Preparing for an interview that will occur later in the week, a candidate shops for a new blouse that she'll wear to the meeting. It's very possible that there's an unstated, emotional need reflected in this consumer's decision to purchase a new blouse for her upcoming job interview - she wants to make a good impression. This isn't necessarily in conflict with her purchase decision, but it reflects a deeper need and potentially a desire for social belonging or esteem, not just the need for new clothes.

Differentiated, mass and niche marketing strategies all share the same underlying factors:

Product, Place, Price and Promotion.

The same underlying factors are shared by differentiated, mass and niche marketing strategies:

Product, place, price, promotion

In a limited problem-solving situation, a good retail strategy to prompt the consumer to buy would be:

Promotion, presentation, pricing.

Retailers can increase sales from shoppers engaged in extended problem solving by:

Providing well-trained sales staff and making assurances about long-term customer service. Extended problem solving is often used for high-consideration items or items that are bought infrequently. Thus, these customers are deliberate in their process, thus salespeople and the reputation of the retailer can be important in helping the consumer arrive at a decision.

The best criteria for market segmentation for a retailer searching for a population group to serve would be:

Psychography or behavior

The basis for choosing differentiated, mass or niche marketing approaches is:

The company's high-level go-to-market strategy.

The key characteristic of a limited problem-solving mindset is:

The consumer has little consideration for the buying decision.

Marketers use the Multi-attribute model to:

better position their offering by accentuating the attributes that are most meaningful to a certain market.

Which consumer attitude is most difficult to change?

Belief: attitudes are built upon individual experiences that are enduring.

The major advantage for a retailer to segment a population group to serve is:

focus on a specific population group allows a retailer to effectively concentrate their marketing resources.

When segmenting a population in search of a target market, the idea is to find:

homogenous groups sharing the same traits or characteristics.

The Belief component of the Multi-attribute model represents:

how much the consumer believes the attribute will be delivered

Finding buying information as a consumer is ironic in that:

it is constantly being pushed to the consumer through multiple channels.

The specific problem with segmenting by demographic measurements is:

not all members of the segment would share common attitudes.

A good strategy for the retailer to induce the consumer to purchase in a limited problem-solving situation is:

promotion, presentation and pricing.

The retail strategy mix was created to:

provide a set of tools for the retailer to use to achieve their business objectives.

Retailers searching for a market segment should focus on:

psychography or behavior

Customers express their needs in different ways including:

stated, real, unstated, unexpected and secret.

In reality, brand "owners" are:

the brand's customers, influencers, fans and advocates.

Brand "owners" for all intents and purposes are:

the brand's customers, influencers, fans, advocates.

The ability to do the following would support a differentiated marketing strategy:

the company's ability to design and produce innovative products through research and development

Customer loyalty measured by Value in Exchange refers to:

the product or firm providing value equal or greater than what is paid.

A salesperson can be useful in an extended problem-solving process if:

they engage with the consumer to discover the real needs and concerns.

A consumer buying decision is based solely on feelings is known as:

Experiential

The purpose of the retail strategy mix is:

to provide a set of tools for the retailer to use to achieve their business objectives.

Today the following is the best way to obtain word of mouth buying information:

online customer reviews

Target markets cannot be identified without this key process:

Segmentation

A brand community can be defined as:

A community of people formed on the basis of attachment to a product or brand.

An example of a low-consideration item in a limited problem-solving situation is:

A new brand of moisturizer

The steps of the consumer buying process are contained in these three models:

AIDA, Path to Purchase, Consumer Buying Process.

There are several models that describe the steps of the buying process. The Path to Purchase and Consumer Buying Process are two common models. When we consider a model from a marketing perspective and we examine the attention and the desire, to name a few, of the customer, we are examining which model?

AIDA.

Consumers can find buying information in these four areas:

Advertising, In-Store, Online, and Word of Mouth.

Common demographic characteristics that could be used for segmentation are:

Age, income, highest level of education. Common demographic measures are age, religion, gender, race, income, education, employment, marital status.

The Multi-attribute model consists of three components:

Attributes, beliefs, weights.

Kroger, Wal-Mart, Whole Foods and Dollar General all compete in the grocery industry to some extent. Yet, they each have a different unique business model. Why?

Because each targets a specific customer segment (or segments). And, in doing so, they provide value to consumers that the others can't or don't. These firms saw opportunities to satisfy consumer needs that had been unmet, such as one-stop shop, all-natural/organic assortment, or extreme price value. These are specific target markets that had not been well satisfied by Kroger and other predecessors.

The multiattribute model helps us understand how consumers make decisions. With this in-mind, can you identify why a consumer would choose to shop at their local grocery store versus a Wal-Mart Supercenter?

Because there is a difference in the shopping environment and experience, consumers will select the store that best fits their needs, whether those are assortment, price-value, convenience, accessibility, or something else.

Consumer's attitudes are an enduring assessment they make about a product or brand or firm based on their personal experiences. These attitudes are composed of feelings, beliefs, and actions. The most difficult factor for a marketer to change is:

Beliefs

Regardless of whether it's expressed as AIDA, the path to purchase or the consumer buying process, consumer decision-making includes identification, consideration, and acquisition, where consideration refers to:

Consumers efforts to seek out options that could satisfy the need they've identified. It includes gathering information, evaluating options, and making judgements about which is the best fit to satisfy their wants.

Psychographic or lifestyle data include consumer attitudes, values, perceptions, beliefs, and interests. As noted earlier, psychography is interested in understanding the consumer's motivations, whether stated or unstated. Which of the following reflect psychographic insight?

Consumers who purchase Coke products because they believe Coca-Cola can be a special treat and bring a little bit of delight to their day. Description implies "why" coke products are purchased.

________ causes conflicting customer needs:

Customers expressing their needs in different ways.

Wegmans', a regional grocery chain in the Northeast (MA, NY, NJ, PA, MD, and VA), has less than 100 stores but was voted the best grocery chain in the US in 2018, based on Market Force Information's annual survey of the industry. Part of their success owes to the shopping experience. They offer 70,000 products in their assortment (compared with 40,000 at the average supermarket) and showcase this variety. They also offer a wide selection of local products and prepared meals. Which do you think best describes Wegmans' strategy?

Differentiated. By stocking 75% more items than the average grocery store, Wegman's offers very unique items, including those local to the area. The breadth of items is much different than what is typically found in other supermarkets. Further, their focus on prepared meals, which reflect a high service orientation, imply that Wegman's pursues a different strategy. They create a retail experience that is different than what occurs in other traditional grocery stores.

Which of the hierarchy of effects is characterized by the consumer's buying decision being based solely on feelings?

Experiential

As a consumer, you come into contact with countless brands and products. In your experience, which of the following would NOT be described as having a brand community (a community of customers, fans, and advocates formed on the basis of attachment to a product or brand, stressing the connection between brand, individual identity, and culture)?

Fiskars. Fiskars is a consumer brand and maker of home and garden cutting goods like scissors and shears. However, they don't have the wide-spread customer identification that would energize into a brand community.

Consumer needs conflicts can be better understood by applying Maslow's Hierarchy of Needs due to:

How it identifies and prioritizes underlying human needs.

This key process is necessary to identify target markets:

Segmentation

A perfect use of a brand community is:

Social media campaigns to bring the community together

The different ways customers can express their needs are:

Stated, real, unstated, unexpected and secret.

A retailer accepts into distribution a new line of organic pasta sauces, believing that they'll be a good fit for consumers looking for healthier alternatives in the category. In this example, we might describe health conscious consumers as the:

Target Market Marketers of the organic pasta sauces will position their product to this group of target customers. The customers are only one portion of a given population, but who share the common trait of looking for healthy(ier) food alternatives.

Which of the following does the "Place" factor affect in the retail strategy?

The price consumers are willing to pay.

Value in Exchange in the context of customer loyalty is defined as:

The product or firm providing value equal or greater than what is paid.

In an extended problem-solving process a salesperson can be useful because:

They can engage with the consumer to discover the real needs and concerns.

We define purchases as habitual decision-making when:

They do not require additional thought on the part of the consumer.

As you know, consideration is an important part of the buying process. Which of the following is NOT a way that consumers typically collect information:

Trial and error, knowing that products can be returned or negative experiences can be shared with customer service. Trial and error is not typically a way that consumers collect info in the buying process. Yes, past product and brand experience can inform future decisions. But, during consideration, it's far more likely that consumers will rely on available information through advertising, reviews, and recommendations to inform their choices.

Retailers can increase sales from shoppers engaged in limited problem solving by:

Using advertising, promotion, and in-store merchandising, including displays. THe consumer is unwilling to over-invest time or effort in a decision that has little importance or where a "bad" decision has no lingering negative effects. Thus, they may look for shortcuts like advertising and promotion to arrive at decisions.

Customer loyalty results when a consumer has consistent, positive experiences with a product or brand or firm over time. It is expressed as:

Value in exchange, use, and experience. True customer loyalty extends beyond satisfaction to include value in exchange (price-value) use, performance, and experience (ease or difficulty in acquiring)

Customer loyalty is reflected in the following factors EXCEPT:

Value in resale

Included in demographic measurements are:

age gender race religion

Retailers segment population groups to serve in order to:

allow a retailer to effectively concentrate their marketing resources