Marketing Quiz 2 Chapters 4-6

5 Product Characteristics Influencing Adoption

1. Relative advantage 2. Compatibility 3. Complexity 4. Divisibility 5. Communicability

Intranet

provides ready access to research info, reports, shared work documents, contact info for employees & other stakeholders, and more

Ethnographic Research

-A form of observational research that involves sending trained observers to watch and interact with consumers in their "natural habitat" -(i.e., Nokia mobile phones in poor countries)

Commercial Online Databases

-Computerized collections of information available from online commercial sources via the Internet -Marketers can use these to conduct their own searches of secondary data sources

Perceived Risks (5)

-Financial -Functional -Physical -Social-Psychological -Time

Survey Research

-Gathering primary data by asking people questions about their knowledge attitudes, preferences, & buying behavior -This is the most widely used method for primary data collection and is the approach best suited for gathering descriptive information

Observational Research

-Gathering primary data by observing relevant people, actions, and situations -(i.e., Fisher-Price Play Lab)

Experimental Research

-Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

5 Stages of Buyer Decision Process

-Need recognition -Information search -Evaluation of alternatives -Purchase decision -Postpurchase behavior

Research Approaches for Gathering Primary Data Include

-Observation -Surveys -Experiments

Research Plan

-Outlines sources of existing data and spells out specific research approaches, contact methods, sampling plans, and instruments that researchers will use to gather new data. -Should be presented in a written proposal

5 Brand Personality Traits

-Sincerity -Excitement -Competence -Sophistication -Ruggedness

Competitive Marketing Intelligence

-The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment. -Its goal is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats

Marketing Research

-The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization -Gives marketers insights into customer motivations, purchase behavior, and satisfaction. Can help them to assess market potential and market share or to measure the effectiveness of pricing, product, distribution, and promotion activities

5 Stages in Adoption Process

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

Marketing Research Process Steps (4)

1. Defining the problem & research objectives 2. Developing the research plan 3. Implementing the research plan 4. Interpreting and reporting the findings

Marketing research project may have one of three types of objectives

1. Exploratory research 2. Descriptive research 3. Casual research

Maslow's Hierarchy of Needs (Bottom to Top)

1. PHYSIOLOGICAL NEEDS (hunger, thirst) 2. SAFETY NEEDS (Security, protection) 3. SOCIAL NEEDS (sense of belonging, love) 4. ESTEEM NEEDS (self-esteem, recognition, status) 5. SELF-ACTUALIZATION NEEDS (Self-development and realization)

Designing the Sample has 3 Requirements

1. Who is to be studied? (What sampling unit?) 2. How many people should be included? (What sample size?) If well chosen, samples of less than 1% of a population can often give good reliability 3. How should the people in the sample be chosen? (What sampling procedures?)

-Questionnaire -Mechanical Devices

2 Main research instruments for collecting primary data

Observational

Best kind of research for exploratory research

Customer Service Department

Keeps records of customer satisfaction or service problems

New Task

A business buying situation in which the buyer purchases a product or service for the first time

Straight Rebuy

A business buying situation in which the buyer routinely reorders something without any modifications

Modified Rebuy

A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

Data Warehouse

A companywide electronic database of finely detailed customer information that needs to be sifted through for gems (i.e., Wal-Mart's provided the company with info that customers in Florida buy strawberry Pop Tarts in preparation for hurricanes)

Belief

A descriptive thought that a person holds about something

New Product

A good, service, or idea that is perceived by some potential customers as new

Subculture

A group of people with shared value systems based on common life experiences and situations. Includes nationalities, religions, racial groups, and geographic regions

Motivation (Drive)

A need that is sufficiently pressing to direct the person to seek satisfaction of the need

Attitude

A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea

Lifestyle

A person's pattern of living as expressed in his or activities, interests, and opinions

Lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions

Sample

A segment of the population selected for marketing research to represent the population as a whole

Drive

A strong internal stimulus that calls for action. Becomes a motive when it is directed toward a particular stimulus object.

Consumer Market

All the individuals and households that buy or acquire goods and services for personal consumption

Buying Center

All the individuals and units that play a role in the purchase decision-making process

Open-End Questions

Allow respondents to answer in their own words

Experimental

Best kind of research for gathering casual information

Surveys

Best way to conduct descriptive research

Derived Demand

Business demand that ultimately comes from (derives from) the demand for consumer goods

Cognitive Dissonance

Buyer discomfort caused by postpurchase conflict

Systems Selling (or Solutions Selling)

Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

Information Search

Consumers can obtain information from any of several sources, including personal sources (family, friends, neighbors, acquaintances), commercial sources (advertising, salespeople, dealer Web sites, packaging, displays), public sources (mass media, consumer rating organizations, Internet searches), and experiential sources (handling, examining, using the product)

Mail Questionnaires

Can be used to collect large amounts of information at a low cost per respondent

Value Analysis

Carefully analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide greater value

Learning

Changes in an individual's behavior arising from an experience

Online Marketing Research

Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers' online behavior

Selective Retention

Consumers are likely to remember good points made about a brand they favor and to forget good points made about competing brands

Marketing Information System (MIS)

People and procedures for assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights

Opinion Leader

Person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others

Internal Databases

Electronic collections of consumer and market information obtained from data sources within the company network

Customer Insights

Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships

Marketing Development

Furnishes information on customer demographics, psychographics, sales transactions, and website visits

Online Focus Groups

Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior

Membership Group

Groups that have a direct influence and to which a person belongs

Alternative Evaluation

How the consumer processes information to arrive at brand choices

Information in the Database is used by marketing managers to

Identify marketing opportunities and problems, plan programs, and evaluate performance

Closed-End Questions

Include all the possible answers, and subjects make choices among them. Examples include multiple-choice questions and scale questions

Touch Points

Include customer purchases, sales force contacts, service and support calls, Web site visits, satisfaction surveys, credit & payment interactions, market research studies- every contact between the customer and the company

Primary Data/ Primary Research

Information collected for the specific purpose at hand. Quantitative and Qualitative

Secondary Data/ Secondary Research

Information that already exists somewhere, having been collected for another purpose

Sources Marketers can Obtain Needed Information From

Internal data, marketing intelligence, and marketing research

Customer Relationship Management

Managing detailed information about individual customers and carefully managing customer "touch points" in order to maximize customer loyalty. Consists of sophisticated software and analytical tools that integrate customer info from all sources, analyze it in depth, and apply the results to build stronger customer relationships

Descriptive Research

Marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

Exploratory Research

Marketing research to gather preliminary information that will help define problems and suggest hypotheses

Causal Research

Marketing research to test hypotheses about cause-and-effect relationships

Nonprobability Samples

Marketing researchers take these when probability sampling costs too much or takes too much time

Neuromarketing

Measuring brain activity to learn how consumers feel and respond. Usually is used in combination with other research approaches to gain a more complete picture of what goes on inside consumers' heads.

Cues

Minor stimuli that determine when, where, and how the person responds

Telephone Interviewing

One of the beset methods for gathering information. Provides greater flexibility than mail questionnaires

Online Social Networks

Online social communities- blogs, social networking Websites, or even virtual worlds- where people socialize or exchange information and opinions

Focus Group Interviewing

Personal interviewing that involves inviting six to ten people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues. Participants are normally paid in small sums for attending

Accounting Department

Prepares financial statements and keeps detailed records of sales, costs, and cash flows

Marketing Channel Partners

Provide data on point-of-sale transactions

E-Procurement

Purchasing through electronic connections between buyers and sellers- usually online

Motivation Research

Qualitative research designed to prove consumers' hidden, subconscious motivations

Social Class

Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors (there are 7 in America: Upper uppers, lower uppers, upper middles, middle, working, upper lowers, lower lowers)

Operations

Reports on production schedules, shipments, and inventories

Sales Force

Reports on reseller reactions and competitor activities

Reference Groups

Serve as direct (face-to-face) or indirect points of comparison

Immersion Groups

Small groups of consumers who interact directly & informally with product designers without a focus group moderator present

Extranets

Suppliers, customers, resellers, and select other network members may access this to update their accounts, arrange purchases, and check orders against inventories to improve customer service. (i.e., Penske Truck Leasing's MyFleetAtPenske.com

Supplier Development

Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

Personal Interviewing

Takes 2 forms: individual and group interviewng

Need Recognition

The buyer recognizes a problem or need. The need can be triggered by internal stimuli when one of the person's normal needs- hunger, thirst, sex- rises to a level high enough to become a drive. A need can also be triggered by external stimuli

Consumer Buying Behavior

The buying behavior of final consumers- individuals and households that buy goods and services for personal consumption

Business Buyer Behavior

The buying behavior of the organizations that buy goods and services for use in the production of other products and services or to resell or rent them to others at a profit

Adoption Process

The mentall process through which an individual passes from first hearing about an innovation to final adoption

Perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world

Culture

The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions

Brand personality

The specific mix of human traits that may be attributed to a particular brand

Selective Attention

The tendency for people to screen out most of the information to which they are exposed- means that marketers must work especially hard to attract the consumer's attention

Selective Distortion

The tendency of people to interpret information in a way that will support what they already believe. People tend to retain information that supports their attitudes and beliefs

Personality

The unique psychological characteristics that distinguish a person or group

Personal Factors

These include the buyer's age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept

Data Mining

These techniques are used to unearth the riches hidden in customer data. Once the data warehouse brings the data together, the company uses high-powered _____ techniques to sift through the mounds of data and dig out interesting findings about customers

Individual Interviewing

This type of interviewing is flexible and involves talking with people in their homes or offices, on the street, or in shopping malls. May cost 3 to 4 times as much as telephone interviews

Behavioral Targeting

Tracking consumers' online browsing behavior and using it to target ads to them. Google calls this "interest-based advertising," while Yahoo! calls it "interest-matched advertising"

-Attitudes of Others -Unexpected Situational Factors

Two factors that can come between the purchase intention and the purchase decision

- Intrusions on Customer Privacy - Misuse of Research Findings

Two major public policy and ethics issues in marketing research

Group

Two or more people who interact to accomplish individual or mutual goals

Probability Samples

Using these, each population member has a known chance of being included in the sample, and researchers can calculate confidence limits for sampling error