MKTG330 Exam #2 (Chap 6-8)

The three major categories of influences on the consumer buying decision process are:

situational influences, social influences, and psychological influences

The United States Navy purchases uniforms from a single supplier. For the last twenty-five years, the trousers purchased from this supplier have not changed and have been bought every six months, in seven different sizes. This example is called a

straight rebuy

Influencer

technical personnel who develop the specifications and evaluate alternatives

Many aspects of a consumer buying decision are affected by the individual's level of involvement. Level of involvement is...

the importance and intensity of interest in a product in a particular situation.

Modified Rebuy

A product that has been purchased before, but now with altered specifications

Which of the following is true with respect to buyers in business markets?

Business customers demand detailed information about a product's functional features and technical specifications.

Segmentation Variables

Demographic, geographic, psychographic, and behavioristic

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer?

Does the supplier also sell to my competitors?

Government Markets

Federal, state, county, or local governments that buy goods and services to support their internal operations

Target Market Selection Process

IDDES: identify, determine, develop, evaluate, and select

Which of the following products is most likely to have its market segment based on age?

Legos

Institutional Markets

Made up of charitable, educational, and community groups. NON-BUSINESS goals.

Cognitive Dissonance

Part of Stage 5: the buyer's doubts short after a purchase, often occurs after expensive/high involvement purchases

RFI

Part of stage 2: request for information

Four Types of Business Markets

Producer, Reseller, Government, and Institutional

An accountant who purchases software for maintaining clients' books is an example of...

a producer.

New Buy

a product that has not been purchased before

Straight Rebuy

a repurchase of a product used before (ex: business cards)

Budweiser may choose to segment its market based on heavy, moderate, and light drinkers of its alcoholic beverages. This is an example of market segmentation based on...

behavioristic variables.

Differentiated Strategy/Approach

communicating with multiple groups with messages (often brands) tailored to each group

Business Markets

consist of individuals, organizations, or groups that purchase a specific kind of product for resale, production, or daily operations

Segmentation variables are usually grouped into four categories...

demographic, geographic, psychographic, and behavioristic

The purpose of marketing segmentation is to...

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

Joint Demand (in business markets)

when two or more items are in a combination to produce a product (Ex: if you order a steering wheel, you'll need a dashboard)

Evan has just been hired as a product manager for a major technology firm. Currently, he is making purchases for his new apartment and upcoming job. His purchase of _____ would most likely be done through extended decision making, while his purchase of ____ would be purchased through limited decision making behavior.

flat screen TV; bath towels

Concentrated Strategy/Approach

focuses on one or few narrowly defined groups

After deciding to order replacement parts for aging machinery, the buyer for a construction company examines catalogs and trade publications looking for these parts. The buyer is at which stage in the business buying decision process?

Product-supplier search and evaluation

Influences on Purchasing Process

Situational, Psychological, Social

Initiator

Someone within the organization who suggests a new buy or new products

Problem Recognition

Stage 1: one or more individuals recognize a problem or need exists

Specifications

Stage 2: the development of the product specifications, requires the buying center participants to assess the need/problem

Potential Products

Stage 3: searching for and evaluating potential products and suppliers

Selection/Purchase

Stage 4: the product is purchased

Evaluation

Stage 5: the product and supplier's performance is evaluated by comparing with specifications

The first step in the target market selection process is...

identifying an appropriate targeting strategy

Inelastic Demand (in business markets)

if the price increases/decreases, it does not affect the demand for the product

Producer Markets

individuals and businesses who purchase products to make profits by producing other products

Reseller Markets

individuals or businesses who purchase products to make profits by marking up and reselling the product

Business Markets

individuals, organizations, or groups that purchase products for resale or direct use in producing other products

Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent negotiates with manufacturers and makes the decision on what to buy. However, for this purchase he has asked members of the computer science department to give input on the purchase decision. In this instance, the student senate would be acting as a(n) ____, while the purchasing agent is a(an) ______.

influencer; decider

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

internal search and external search

A major determining factor in deciding which type of decision-making process should be used depends on the individual's intensity of interest in a product and the importance of the product for that person. This is known as an individual's

level of involvement

Cole's smart phone is two years old and he would like to have a new one. This time, he wants to make sure that it has a longer battery charge and better geographic coverage since he is traveling three days a week for his new job. Cole is most likely to use _____ for this purchase.

limited decision making behavior

Perry Supply's sales and sales force have continued to expand. Now, the firm plans to add a fleet of company cars as part of its sales compensation package. For Perry Supply, these vehicles would represent a ____ purchase.

new task

Institutional markets are...

organizations that seek non business goals.

Marketers who attempt to use reference-group influence in advertisements are most likely to succeed when message indicate that...

people in a specific group buy the product and are highly satisfied with it.

Psychological Influences

perception, motives, learning, attitudes, lifestyle

Situational Influences

physical surroundings, social surroundings, timing, purchase reason, mood/condition

The five major stages of the consumer buying decision process, in order, are...

problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation

Business markets are typically divided into four categories...

producer, reseller, government, and institutional

After doing considerable shopping, Eric has just decided what brand and type of athletic shoes to buy and where he's going to buy them. In what stage of the consumer buying decision process is Eric?

purchase

Consumer Markets

purchasers and household members who intend to consume and benefit from the purchased products (do not buy for profit)

Our society uses many factors, including occupation, educational level, income, wealth, religion, race, ethnic group, and possessions, to group people into...

reference groups.

Social Influences

roles, family, reference groups, social class, culture

Guess? is spending $22 million on marketing activities next year and expects to sell 30 million pairs of jeans. These 30 million pairs represent the company's...

sales forecast

Characteristics of individuals, groups, or organizations that are used for dividing a total market into smaller homogeneous groups are called...

segmentation variables

Frito-Lay Snack Foods is currently conducting marketing segmentation studies. For several segments, they have completed competitive assessments and cost estimates. The next major step they must take is to...

select specific target markets.

Derived Demand (in business markets)

the more a product is used, the more demand there is for the product

Decider

the person who allocates the funds for the purchase

User

the person who is actually using the product

Gatekeeper

the person who keeps information from the decider (ex: the secretary/receptionist)

Individual influencing factors refer to...

the power an individual controls in the buying center

Buying Process

the process that all individuals and organizations go through before making a purchase

Buyer

the purchasing agent, the person who will negotiate and place the order

Which is not a characteristic of a consumer market?

their purchasing power decisions are always made by one individual

Undifferentiated Strategy/Approach

try to attract the greatest number and variety of customers

When a firm designs a single marketing mix and directs it at an entire market for a particular product, the company is using a(n) ____ strategy.

undifferentiated

Elastic Demand (in business markets)

when the increase/decrease in the price DOES affect the demand for the product