MKTG 301

Motivation

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

________ is the degree to which the innovation fits the values and experiences of potential consumers. A) Compatibility B) Relative advantage C) Divisibility D) Complexity E) Communicability

A) Compatibility

Major Subculture Groups

Hispanic, African-America, Asian-American, mature consumers (baby boomers and seniors)

What is the central question for marketers?

How do consumers respond to the various marketing efforts the firm might use?

income

Identifies and targets the affluent for luxury goods. People with low annual incomes can be a lucrative market. Troubled economy makes marketing to all income groups a challenge

Why Study Consumer Behavior?

If you don't understand WHY someone might want your product you can't accurately Position it or develop a unique Marketing Mix that helps convince them to Buy It!!

What is the order of Maslow's hierarchy? (bottom up)

Physiological, safety needs, social needs, esteem needs, self actualization needs

Influencer

Provide information to others

____ divides buyers into different segments based on social class, lifestyle, or personality characteristcs

Psycho graphic segmentation

status

esteem given to role by society

role

expected activities

A company can lengthen its product line by ___ or by _____ it

filling: stretching`

What is the most important for product designers to consider as they develop a product?

how customers will use and benefit from the product

Reference group

is the people to whom an individual looks when forming attitudes about an object

_______ describes changes in an individual's behavior arising from experience

learning

_____ consists of evaluating the attractiveness of different market segments and selecting one or more market segments to enter

market targeting

To be useful, market segments must be

measurable, accessible, substantial, differentiable, actionable

Groups that have a direct influence and to which a person belongs are called _____________

membership groups

Learning...

occurs due to an interplay of drives, stumuli, cues, responses, and reinforcement strongly impacted by the consequences of an individuals behavior Behaviors with satisfying results tend to be repeated

Marketers of brands subjected to strong group influence must figure out how to reach ________—people within a reference group who, because of special skills, knowledge, personality, or other characteristics, exert social influence on others.

opinion leaders

Consumer buying behavior

refers to the buying behavior of final consumers.

Which of the following personal characteristics that influence consumer behavior refers to an individuals understanding that he or she is unique?

self-identity Consumer behavior is influenced by a variety of personal characteristics such as self-identity. which is an individuals understanding that he or she is unique.

Family

strongly influences buying behavior, gender stereotypes for certain types of purchases are relaxing in the US, children are very influential and have substantial disposable income of their own

local marketing (micromarketing)

tailoring brands and promotions to the needs and wants of local customer groups - cities, neighborhoods, specific stores

individual marketing (micromarketing)

tailoring products and marketing programs to the needs and preferences of individual customers

positioning

the way the product is defined by consumers on important attributes -- the place the product occupies in consumers' minds relative to competing products

The management team at Riceborough Farms recently invested thousands of dollars in setting up wind energy units across its property, believing that this would enable the Farms to become self-sufficient in energy production. However, a year into the project, it was noted that the wind-powered systems did not produce much energy, and the Farms used almost as much conventional energy as before. Which of the following, if true, would reduce the cognitive dissonance felt by the management team at Riceborough? A) The company hired to install the systems had made a mistake during installation. B) Most of the employees at Riceborough are dedicated to the concepts of sustainable development and green technology. C) The government offers several benefits for companies adopting green technologies such as solar or wind energy systems. D) The climate of the area is not suited for the harnessing of wind energy. E) The windmill systems installed at Riceborough were of the latest technology.

A) The company hired to install the systems had made a mistake during installation.

Almost all major purchases result in ________, discomfort caused by postpurchase conflict. A) cognitive dissonance B) selective attention C) selective distortion D) selective retention E) legitimization

A) cognitive dissonance

Buyer

Actually buys

User

Actually consumes

Age and life cycle state addresses the fact that consumer needs and wants change with age

Avoid stereotypes in promotions based on age. Promote positive messages when marketing to mature consumers

Which of the following would fulfill a safety need according to Maslow's hierarchy of needs? A) becoming a distinguished art critic B) a life insurance policy C) a loving wife D) recognition from one's peer group and society E) sex

B) a life insurance policy

Becca wants to buy a new coat. She asked her friends to recommend a store and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby stores to see what is available in her price range. Becca is most likely to be in the ________ stage of the buying process. A) product evaluation B) information search C) alternative evaluation D) purchase decision E) need recognition

B) information search

James and Nathan attended a sales seminar. Both left the seminar with differing opinions about what was important to implement in their jobs. Both used the information in different ways, according to what each already believed was important. They have engaged in ________. A) selective attention B) selective distortion C) perceptual defense D) selective attitude E) selective calling

B) selective distortion

Which of the following needs in Maslow's hierarchy of needs is generally satisfied the last? A) physiological needs B) self-actualization needs C) safety needs D) social needs E) esteem needs

B) self-actualization needs

Which of the following statements is in accordance with Maslow's hierarchy of needs theory? A) A person must fulfill his esteem needs before being able to fulfill his social needs. B) The fewer financial resources a person has to maintain his physiological needs, the greater emphasis he places on maintaining the esteem of others. C) A person will not be interested in achieving recognition or social status until his physiological and safety needs are met. D) Appreciation of an interest in art increases when a person's access to physiological comforts is low. E) Physiological needs decrease as a person begins fulfilling higher-level needs.

C) A person will not be interested in achieving recognition or social status until his physiological and safety needs are met.

________ is the decision by an individual to become a regular user of the product. A) New product recognition B) Evaluation C) Adoption D) Quality assessment E) Information search

C) Adoption

People are often influenced by reference groups to which they do not belong. ________ refer to groups to which an individual wishes to belong. A) Advocacy groups B) Ethnic groups C) Aspirational groups D) Membership groups E) Peer groups

C) Aspirational groups

Which of the following Web sites is a message board? A) Twitter B) YouTube C) Craigslist D) Wikipedia E) Facebook

C) Craigslist

________ are tradition bound, suspicious of changes and adopt the innovation only when it has become something of a tradition itself. A) Early majority B) Influencers C) Laggards D) Innovators E) Early adopters

C) Laggards

________ describes changes in an individual's behavior arising from experience. A) Lifestyle B) Cognitive dissonance C) Learning D) Aggressiveness E) Perception

C) Learning

________ refers to the practice of including ethnic themes within a company's mainstream marketing. A) Social marketing B) Cause marketing C) Multicultural marketing D) Viral marketing E) Guerilla marketing

C) Multicultural marketing

According to Freud's theory, ________. A) a person's buying decisions are status-driven and determined by a need for independence. B) a person's buying decisions are affected by subconscious motives that the buyer fully understands and is aware of. C) a person's buying decisions are affected by subconscious motives that even the buyer may not fully understand. D) when a person's need is satisfied, it will stop being a motivator, and the person will then try to satisfy the next most important need. E) human needs are arranged in a hierarchy from the most pressing at the bottom to the least pressing at the top.

C) a person's buying decisions are affected by subconscious motives that even the buyer may not fully understand.

.A(n) ________ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea. A) motive B) lifestyle C) attitude D) perception E) drive

C) attitude

Gatekeeper

Controls the flow of information

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

Culture

What type of marketing refers to marketing that involves enlisting or even creating opinion leaders to serve as brand ambassadors who spread the word about a company's products? A) social marketing B) values marketing C) direct marketing D) buzz marketing E) traditional marketing

D) buzz marketing

Which of the following is a psychographic characteristic of a consumer? A) gender B) educational qualifications C) age D) lifestyle E) economic status

D) lifestyle

A(n) ________ consists of the activities a person is expected to perform according to the people around him. A) attitude B) lifestyle C) motive D) role E) status

D) role

Decider

Decides whether or not to buy

Disposer

Discontinues usage

Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand? A) brand architecture B) brand equity C) brand perception D) brand loyalty E) brand personality

E) brand personality

Jeff is in the process of buying a new car. He is carefully analyzing the features he wants from the car, and perceives significant differences in price, quality, and features among his three favorite models. Jeff's next step is most likely to be ________. A) opinion leadership B) postpurchase behavior C) purchase decision D) need recognition E) evaluation of alternatives

E) evaluation of alternatives

Which of the following is an experiential source of information? A) Internet searches B) packaging C) salespeople D) mass media E) using the product

E) using the product

Examples of social influences:

Family Opinion leaders Reference Groups Social Class

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

Perception

What is the most pressing need? (Maslow's Hierarchy)

Physiological needs (hunger, thirst)

Social Class

Society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. People in the U.S. can change their social class easier than can those living in many other countries.

_______ is a group of people with shared value systems based on common life experiences and situations.

Subculture Example: Smeal College, you can move in and out of a subculture. You cannot move away from a culture though

Examples of Behavioral Segmentation Dimensions

Usage Occasions, Product Benefits, User Status, Usage Rate, Loyalty Status, Buyer Readiness, Consumer Attitudes

belief

a descriptive thought that a person holds about something

attitude

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

segmentation

dividing a market into distinct groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes. Demographic, geographic, psycho graphic and behavioral characteristics are used.

Your team is still arguing about the formulation of Cow Power. One manager wants the product to be colored and flavored. Another manager wants just flavored, uncolored milk, while a third team member wants colored, unflavored milk. What would be the best way to resolve this issue? a. Offer different formulations in focus groups, and see which one performs best. b. As the head of your team, you should simply make the decision by yourself. c. Offer different formulations in a test market, and see which one sells best. d. Have the team take a democratic vote. e. Ask your boss to make the decision.

a. Offer different formulations in focus groups, and see which one performs best. Cheaper than test market

An advisor points out that Smoothsayer has qualities that would benefit men as much as they would women. He strongly suggests that you include men in your target audience. Which of the following identifies the best response to this suggestion? a. Until men are shown to actually buy beauty creams they should not be targeted. b. Men are not the primary decision-makers for beauty products, so they should not be targeted. c. To avoid charges of discrimination, men should be targeted. d. Young men who are more open-minded should be targeted. e. Older men who are more prone to wrinkles should be targeted.

a. Until men are shown to actually buy beauty creams they should not be targeted. The assertion that men benefit from beauty creams may be true. However, there is no evidence that men actually purchase beauty creams. Until this fact changes, it is a mistake to target men for beauty cream.

Which of the following is not a dimension in a company's product mix?

age

Top five brands (brand equity)

apple, google, coca cola, ibm, microsoft

For example, an _________ group is one to which the individual wishes to belong

aspirational

the buyer decision process

awareness -> interest -> evaluation -> trial -> adoption ->

One of your options is to market Cow Power as a powder that kids could mix with milk. For which market segment would powdered Cow Power be most problematic? a. Cow Power to be promoted as an after-school drink for the home b. Cow Power to be promoted as a sports drink for kids on the go c. Cow Power to be promoted as a drink for birthday parties and other celebrations d. Cow Power to be promoted as a drink that kids may obtain in ice cream parlors and fast food restaurants e. Cow Power to be promoted as a drink that accompanies specific foods, such as cookies or grilled-cheese sandwiches

b. Cow Power to be promoted as a sports drink for kids on the go

You have dismissed using political orientation as a segmentation variable. However, new information about Smoothsayer may change your mind. Which of the following makes the best case for including political orientation as a key segmentation variable? a. Smoothsayer is made from ingredients that are imported from France, Morocco, and Malaysia. b. Smoothsayer is union-made, organic, its factory is carbon neutral, and no animals were harmed during the making or testing of the product. c. Smoothsayer is not the most expensive beauty cream on the market. d. Smoothsayer is made from all-natural ingredients. e. Smoothsayer is used by a number of famous people, including movie stars, politicians, first ladies, artists, musicians, and business executives.

b. Smoothsayer is union-made, organic, its factory is carbon neutral, and no animals were harmed during the making or testing of the product.

You envision Cow Power as a treat that parents will give to kids as a reward. Which packaging size best suits your conception of Cow Power being an individual treat? a. pint b. half-pint c. quart d. half-gallon e. gallon

b. half-pint The best way to hand out a reward is to be able to give the recipient something discrete and appropriate without any delay, special conditions (save some of this for later), or hassle.

What divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product?

behavioral segmentation

One of the options you are considering is marketing Cow Power with a single unified approach that is aimed at both boys and girls. Which of the following is the greatest advantage of this approach? a. It is likely to appeal more to girls than boys. b. It is likely to appeal more to boys than girls. c. It will be easier and less expensive to create and promote than separate campaigns for boys and girls. d. It will be more effective in attracting new customers than separate campaigns for boys and girls. e. It will be more appealing to parents than separate campaigns for boys and girls.

c. It will be easier and less expensive to create and promote than separate campaigns for boys and girls

You are considering making teens 13-19 as your primary target market. An advisor tells you that you are making a mistake. Which of the following statements best supports your advisor's position? a. Teens do not use beauty creams. b. No one under 20 uses beauty creams on a daily basis unless the creams are prescribed by a doctor. c. Most teens do not have enough disposable income to purchase Smoothsayer. d. Teens do not worry about their skin. e. Few upper class families have teen-aged children.

c. Most teens do not have enough disposable income to purchase Smoothsayer.

For boys, you are thinking of using a famous NFL quarterback as Cow Power's sole spokesperson. An advisor thinks that is a mistake and that you should focus on a variety of figures from different sports. Is focusing the campaign on an NFL quarterback a good idea? a. No, because sports is not a topic that appeals to a majority of boys. b. No, because most boys under 12 are too young to be football fans. c. No, because focusing on football exclusively will make boys who enjoy other sports feel left out. d. Yes, because football is likely to appeal to the boys' fathers who typically would buy this kind of product. e. Yes, because boys who don't like football recognize that they are a small minority.

c. No, because focusing on football exclusively will make boys who enjoy other sports feel left out.

All of these final consumers combine to make up the ________

consumer market

Cultural factors exert a broad and deep influence on consumer behavior. Furthermore, marketers are always trying to spot ________________ that might be wanted.

cultural shifts in order to discover new products

As the Marketing Manager at TriState Dairies, you have been given the job of developing plans to market a new line of products called Cow Power for kids. Your first task is to determine a target demographic for the product. Which of the following approaches is the worst choice and will be most likely to create problems if you choose it? a. Create two separate lines — one for boys and one for girls. b. Create a neutral product that appeals to both boys and girls. c. Create a single line that is aimed at boys and assume it will appeal to girls as well. d. Create a single line that is aimed at girls and assume it will appeal to boys as well. e. Create a single line that is aimed at dads because they are the ones who typically make food purchases.

d. Create a single line that is aimed at girls and assume it will appeal to boys as well All of the approaches are likely to work except marketing a single line aimed at girls. Marketing studies show that girls will eagerly buy products aimed at boys, but boys avoid products that are aimed for the girls market. Therefore, a product aimed at girls would not be likely to sell to buys.

3. It seems clear that Smoothsayer has appeal to both the 35 and up market and the younger market. To reach both segments, an advisor suggests that you launch two separate market campaigns, one aimed at the older market, the other aimed at the younger market. Which conclusion is the best response to this suggestion? a. It is a bad idea because two separate market campaigns will create confusion among consumers. b. It is a bad idea. Marketers never launch separate market campaigns because they are too expensive and too hard to implement. c. It is a good idea. The more market campaigns you launch, the more likely you are to succeed. d. It is a good idea as long as the two market campaigns are designed to complement one another. e. It is neither a good or a bad idea. It is impossible to predict how market campaigns will do before they are launched.

d. It is a good idea as long as the two market campaigns are designed to complement one another.

As the marketing manager of Holden-Evan, a health, home, and beauty consumer products company, your task is to determine how best to target and position several new beauty products. Smoothsayer, an expensive new skin cream, is one of the products you are analyzing. In choosing segmentation variables for Smoothsayer, which of the following identifies the strongest reason for choosing social class as one of your segmentation variables? a. Studies show that only the wealthy use beauty creams regularly. b. Studies show that middle class women use beauty creams, but wealthy women rely almost exclusively on spa treatments for beauty. c. Studies show that the use of expensive beauty creams cuts across all socioeconomic groups. d. Smoothsayer costs $300 a jar so it is not for everyone. e. Smoothsayer is expensive but it is seen as a status symbol among middle class women.

d. Smoothsayer costs $300 a jar so it is not for everyone.

Psychographic segmentation

dividing a market into different groups based on social class, lifestyle, or personality characteristics

behavioral segmentation

dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product