MKTG 330 Exam 2

Routinized Response Behavior

Frequently purchased, low-cost, little search-and-decision effort Ex: buying a coke

Consumer Market (B2C)

Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make profits

Family Influences

Purchases are for entire family to use and whole family participates in decision making process

Personality

There is a weak association between personality and buying behavior

social influences

roles, family influences, reference groups, opinion leaders, digital networks, social classes, culture/subcultures

straight rebuy

routine, same purchase just buying more ex: buying more of the same computers for the new staff

requirements or characteristics of a market

A market is a group of people, individuals or organizations, who 1. Have needs for products in a product class and 2. Have the ability, 3. Willingness, 4. And authority to purchase such products

homogenous markets

A market in which a large proportion of customers have similar needs for a product

users

the person who consumes or uses the product or service purchased by the buying center ex:

modified rebuy

upgrading to a new version or model, similar but have changes ex: getting all new updated apple computers

negotiation

used for one-time projects such as buildings, capital equipment, and special projects

What is cognitive dissonance?

-A buyer's doubts shortly after a purchase about whether the decision was the right one -Often occurs after expensive, high-involvement purchases

Attitudes

-An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea -Cognitive, Affective, Behavioral

Self-Concept

-Buyers purchase products that reflect and enhance their self-concepts and purchase decisions are important to the development and maintenance of a stable self-concept

conditions for marketing segmentation to be successful

-Customer's needs must be heterogeneous -Segments must be identifiable and divisible -Segments must be comparable to one another with respect to estimated sales potential, costs and profits -One segment must show enough profit potential to justify developing a special marketing mix -The firm must be able to reach the chosen segment with a particular marketing mix

government

-Federal, state, county, and local governments that buy goods and services to support their internal operations and provide products to their constituencies. -The types and quantities of products government markets purchase reflect societal demands on government agencies. -Government markets are complex but can be lucrative.

What are the five major stages of the consumer buying decision making process?

1. Problem Recognition Stage 2. Information Search 3. Evaluation of Alternatives 4. Purchase Stage 5. Postpurchase Evaluation Stage

three most widely recognized types of consumer decision making

1. Routinized Response Behavior 2. Limited Decision Making 3. Extended Decision Making

What are the stages of the buying business decision process in order?

1. problem recognition 2. specifications 3. potential products 4. selection 5. evaluation

Selective distortion

An individual's changing or twisting of information that is inconsistent with personal feelings or beliefs

What is an example of reciprocity in business markets?

An industrial buying practice in which two organizations agree to purchase each others products and services.

Motive

An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals

Consumer Misbehavior

Behavior that violates generally accepted norms of a particular society like shoplifting, organized retail crime, consumer fraud, pirating, abusive consumers

attributes of business customers

Better informed, detailed information, technology specifications, goals of purchasing agent, partnerships

What are some examples of products or situations for which you might engage in impulse buying?

Buying a candy bar while waiting in line at the grocery store. -If you were satisfied, chances are, you will have those impulse buys again.

Learning

Changes in an individual's thought processes and behavior caused by information and experience

four main categories of segmentation variables

Demographics, geographics, psychographics, behavioristic

market segment profiles

Describes the similarities of potential customers within a segment and explains the differences among people and organizations in different segments

A group of people that lacks any of the four requirements does not constitute a market

Ex: Teenagers may have the desire, the money and the willingness to buy alcohol but the law prevents them from having the authority to purchase alcohol

different methods a company can use to forecast sales

Executive Judgment Surveys Time Series Analysis Regression Analysis Market Tests

Level of Involvement with Products

Individual intensity of interest in a product and the importance of the product for that person

Producer

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations ex: Grocery store: plastic bags, scanners

market segments

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs

Business Market (B2B)

Individuals, organizations or groups that purchase a specific kind of product for resale, direct use in producing other products or use in general daily operations

Within the information search step of the consumer buying decision process, what two primary aspects exist?

Internal Search -Past experiences -Memory External Search -Consumer reports -Advertising -Word of mouth -Internet -Social Media

Opinion Leader

Likely to be most influential when consumers have high product involvement but low product knowledge

Patronage Motives

Motives that influence where a person purchases products on a regular basis

institutional

Organizations with charitable educational, community, or other non-business goals -Marketers may use special marketing activities to serve institutions because they have different goals and fewer resources than other markets. ex: churches, colleges, hospitals, and civic clubs.

What are the five levels of needs in order in Maslow's Hierarchy of Needs?

Physiological, safety, social, esteem, self-actualization

Limited Decision Making

Prior experience with products or services, rely more on personal knowledge, majority of customer decisions Ex: buying jeans or clothes

What are the four categories business markets are typically divided into?

Producer, reseller, government, institutional

High-involvement products

Products that are visible to others and/or are expensive (clothing, furniture, cars, healthcare)

Low-involvement products

Products that tend to be less expensive and have less associated social risk (buying groceries)

Selective retention

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

The Perception Process

Selective exposure, Selective distortion, Selective retention

What are the three major categories of influences on the consumer buying decision process?

Situational, psychological, and social

Lifestyles

Strongly influences the buying decision process and many marketers segment markets by lifestyle -Lifestyles influence consumers' product needs, brand preferences, types of media used, and how and where they shop

Maslow's Hierarchy of Needs

The five levels of needs that humans seek to satisfy, from most to least important

What is the buying center?

The group of people in an organization that participates in the buying process. -users, influencers, buyers, deciders, gatekeepers

Selective exposure

The process by which some inputs are selected to reach awareness and others are not

the three main targeting strategies to find a target market

Undifferentiated, concentrated, differentiated

Extended Decision Making

Unfamiliar, expensive, or infrequently bought products Ex: buying a new car or house

seller

Wholesalers and retailers that buy finished goods and resell them for a profit ex: Home Depot, PetsMart

reference group

a group that a person identifies with so strongly that he or she adopts the values, attitudes and behavior of the group members

concentrated

acknowledge there are some differences, characteristics of specific customers that are grouped together that are targeted Ex: Tesla cars, Mont Blanc pen

evaluation

actual product base, did the product meet those needs and specifications or does it need to be altered

derived

as consumers demand more so does the business demand ex: Sales of computers are increasing. Intel markets its computer chips to computer manufacturers worldwide.

new-task purchase

buy item for new tasks

geographic

city size, region, state size, climate

What are the types of demand for business products?

derived, inelastic, joint, fluctuating

What are the different buying methods?

description, inspection, sampling, negotiation

the purpose of marketing segmentation

divide a total market to enable a marketer to develop a more precise marketing mix.

behavioristic

end use, usage, brand loyalty

Demographics

gender, age, race

joint

if the product demand increases so does the product components ex: if tequila goes up so do the corks for bottles

fluctuating

increase consumer demand by changing prices ex: A manufacturer of snow tires provides a discount on its products during the summer months.

inspection

industrial equipment, used vehicles, and buildings, have unique characteristics and may vary with regard to condition, make sure it meets needs

potential products

looking at options they have and evaluating what would work for them

What characteristics are family life cycle most typically based on?

marital status and ages of children

the process of dividing a total market into market groups because people within each group have relatively similar product needs

marketing segmentation

types of reference groups

membership: group where person belongs aspirational: group where person wants to belong disassociate: group person doesn't want to belong

What are the three main types of business purchases?

new-task purchase, straight rebuy, modified rebuy

specifications

organization typically putting in request for proposal and getting input back to get what they need for the service or product

psychological influences

perception, motives, learning, attitudes, personality & self-concept, lifestyle

psychographics

personality, motives, lifestyle

Situational influences

physical surroundings, social surroundings, mood of consumer, time dimension, purchase reason

sampling

portion of the product represents whole lot, get a quality from portion

description

quality or grade, the products being purchased are standardized based on certain characteristics

problem recognition

realize theres a problem that needs to be solved -actual state-->desired state

differentiated

recognizing different groups, don't want to target just one group but multiple. Develop different marketing mixes. Ex: lululemon, iPhone

inelastic

slight price fluctuations won't really change the demand for business customers ex: Fleetwood, an RV manufacturer, is constructing its newest model of RV. The windshield wipers for the RV has risen in price.

gatekeepers

the buying center participant who controls information or access to decision makers and influencers ex: Because the company gets a lot of bids, Martha screens salespeople before they can talk to the purchasing department

influencers

the buying center participant who helps develop the specifications and evaluate alternative products for possible use. ex: Sam is a trusted manager who has vast knowledge of construction. He gives the purchasing department advice about what to look for.

buyers

the buying center participant who select the suppliers and negotiate the terms of the purchases. ex:

Many aspects of consumer buying decisions are affected by...?

the individual's level of involvement

Undifferentiated

very few differences within the market needs, targets all consumers Ex: baking soda, black pepper

selection

what venders would you choose to work with that would work best

deciders

who actually choose the products and vendors (when, how and what to buy) ex: Sam is a trusted manager who has vast knowledge of construction. He gives the purchasing department advice about what to look for.