MKTG 351 Exam 1

Utility

the satisfaction one gets from consuming a good or service. Measured in utils.

Total utility

the total amount of satisfaction one gets from the consumption of a single product or a combination of products. This can be derived by adding up the utils of successive units consumed.

Market Penetration

Current market, current products and services

Product development

Current markets, new products and services

5C's

Customer, company, context, collaborators, competitors

Market development

New market, current products and services

Diversification

New markets, new products and services

Conjunctive

This 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.

Segment

a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs.

Consumer decision rules

a set of criteria that consumers use consciously or subconsciously to quickly and efficiently select among several alternatives.

Targeting

after a firm has identified the various market segments it might pursue, it evaluates each segment's attractiveness and decides which to pursue.

Universal

all possible choices in the world of a product category.

Financial risk

associated with a monetary outlay and includes the initial cost of the purchase, as well as the cost of using the item or service.

Compensatory decision rule

assume that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristic compensate for bad characteristics.

Non-compensatory decision rule

choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.

Social risk

involves the fears that consumers suffer when they worry others might not regard their purchase positively.

Performance risk

involves the perceived danger inherent in a poorly performing product or service.

Positioning

involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

Psychological risk

risks associated with the way people will feel if the product or service does not convey the right image.

Psychological needs

something extra a consumer wants. Ex: a USC sweatshirt.

Functional needs

something that a consumer needs to survive. Ex: a sweatshirt to keep warm.

Buyer's remorse

sometimes consumers have second thoughts after buying goods that are expensive, infrequent purchased, or associated with a high level of risk.

Evoked

the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

Retrieval

the brands or stores that can be readily brought forth from memory.

Internal search

the buyer examines his or her own memory and knowledge about the product or service.

External search

the buyer seeks information outside his or her personal knowledge base to help make the buying decision.

The consumer decision process begins when.....

the consumer recognize they have an unsatisfied need.

Marginal utility

the extra satisfaction from an additional unit of the good or the extra utility a consumer gets from one additional unit of a specific product.

Physiological risk

the fear of an actual harm should the product not perform properly.