Cong Test 2
true
T/F: the evaluation of alternatives is the black box of consumer behavior because it is typically the hardest for marketers to understand, influence, and measure.
true
T/F: the key issues for marketers during the purchase stage are product availability and possession utility
true
T/F: the key to availability is convince
True
T/F: the target market and marketing program are interdependent, changes in one typically requires changes in the other
True
T/F: weaknesses that cannot be converted into strengths are the firms limitations
swot analysis
designed to synthesize a wide array of information and aid the transition to the firms strategic focus
positioning
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
permission marketing
-Customers choose to become a member of the firm's target market -Key advantage: Customers are already interested in the product offering
its structured nature ensures that data and information are correctly categorized
1. All of the following are benefits of SWOT analysis EXCEPT: a. It is simple to use. b. Its structured nature ensures that data and information are correctly categorized. c. It promotes managerial collaboration. d. It can synthesize and integrate diverse information. e. It can reduce costs.
consumers recognize that they have unsatisfied needs
1. The consumer buying process begins when: a. marketing research discovers a new, untapped market segment. b. consumers recognize that they have unsatisfied needs. c. merchants offer goods and services for sale. d. a manufacturer develops a new product. e. consumers begin to seek information about an upcoming purchase.
target markets
10. Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm's __________ must recognize that its competencies give it an advantage over the competition. a. management d. employees b. target markets e. strategic partners c. shareholders
Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm's strengths, weaknesses, opportunities, and threats.
2. With respect to the text's advice in conducting a SWOT analysis, which of the following best describes "Look for Causes, Not Characteristics"? a. Break down clichés into meaningful customer-oriented issues. b. Refrain from conducting a single generic analysis for the entire organization. c. Gauge the actual perceptions of customers that give rise to the firm's strengths and weaknesses. d. Focus on the resources possessed by the firm and/or its competitors that are the true causes for the firm's strengths, weaknesses, opportunities, and threats. e. Clearly differentiate internal issues from external issues.
list their marketing options or strategies as opportunities
3. The failure to understand the difference between internal and external issues is one of the major reasons for a poorly conducted SWOT analysis. This happens because managers: a. see opportunities and threats as being the same thing. b. confuse weaknesses with threats. c. see strengths as the only meaningful issue in a SWOT analysis. d. confuse strengths with opportunities. e. list their marketing options or strategies as opportunities.
resources and relationships
4. Strengths are typically based on the existence and nature of the __________ possessed by the firm. Weaknesses stem from a lack of these important factors. a. patents and capital d. products and customers b. resources and relationships e. customers and resources c. customers and partnerships
when the strength can be tied to satisfying a customer need
5. In terms of SWOT analysis, when does a strength become a capability of the firm? a. when the strength can be tied to satisfying a customer need b. when the strength cannot be copied by competitors c. when the strength stands alone without any corresponding weaknesses d. when the strength can be connected to a second strength e. when the strength can be supported by sufficient resources
the complexity of the purchase
6. __________ is/are the primary reason why the consumer buying process varies across customers, products, and situations. a. Individual influences d. Social influences b. Situational influences e. The complexity of the purchase c. The cost of the product
The manager must find ways to transform key threats into strengths.
7. To successfully utilize SWOT analysis as a catalyst for strategic planning, the marketing manager must focus on several important issues. Which of the following IS NOT one of these issues? a. The manager must look beyond the firm's current product offerings. b. The manager must find ways to connect the firm's strengths to its opportunities. c. The manager must strive to convert weaknesses into strengths. d. The manager must attempt to minimize the firm's limitations. e. The manager must find ways to transform key threats into strengths.
Want
A ______ is a customers desire for a specific product that will satisfy the need
Customer Relationship Management
A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. Focus on satisfying customer needs
product line depth
A group of closely-related product items. refers to the NUMBER of product ITEMS in a product line EX: proctor and gamble sells a number of closely related products or General Motors with with well known brands like corvette, Chevrolet, Cadillac, and Buick. Fed Ex also offers a number of logistics and supply chain services in its family brands such as fed ex express, fed ex ground and fed ex freight
selective disortion
A process whereby a consumer changes or distorts information that conflicts with his/her feelings or beliefs
selective attention
A process whereby a consumer focuses on a particular object for a period of time but simultaneously ignores irrelevant information that is also occurring EX: The sign that says good but it also says evil
selective exposure
A process whereby a consumer notices certain stimuli and ignores it.
selective retention
A process whereby a consumer remembers only the information that supports his/her personal beliefs
non marketing controlled source
A review on a website about a product that is negative is a example of a ________ ______ ________ _________-
market segment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product/service needs.
Routine Decision Making
A type of customer decision making used when a person needs little information about a product he or she is buying.
customer Relationship management
Customers have many points of contact with an organization Retaining customers is far most cost effective than recruiting new ones Some customers are more profitable than others The "80/20" rule For most firms, 80 percent of profit comes from 20 percent of customers Use of Technology This relates to _____ _____ ______
Heterogeneity
Econo Lodge operates a chain of economy-priced motels across the United States. These motels have downtown locations where traffic congestion can greatly affect consumers' experiences. For instance, sometimes the traffic noise disrupts their customers' sleep and congestion makes it difficult for guests to enter and exit the parking lot. Other times, the traffic is relatively light and the nights are quiet. What service characteristic is negatively impacting Econo Lodge? A. Intangibility B. Inseparability C. Heterogeneity D. Perishability
product
Everything, both favorable and unfavorable, that a person receives in an exchange.
market specialization
Firms engage in __________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products but also provide needed solutions to customers' problems. a. single segment targeting d. product specialization b. market specialization e. mass market targeting c. selective targeting
cognitive dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
attraction effect
Michael's Fitness center currently offers two different membership plans for it gold course. The key characteristics of these plans are given in the table below. Michael's has decided to offer a third plan, Plan C. Plan C will have a membership fee of $450, no charge per visit, permission for personal guests, no locker, and provision of a personal trainer. It is worse then plan A and B. After Plan C is introduced, Michael's expects sales of Plan A to decrease because of the ____.
true
T/F: Similarities of the consumer markets and business markets include 1. both contain buyers and sellers who seek to make good purchase and satisfy their personal or organizational objectives 2. both use similar buying process that include stages associated with need identification, information search, and product evaluation 3. Both processes focus on customer satisfaction as the desired outcome
true
T/F: A movie review is an example of a external search/stimuli
true
T/F: Consumers can reduce dissonance by: 1. Seeking information that reinforces positive ideas about the purchase (e.g., ticket booking) 2. Avoiding information that contradicts the purchase decision 3. Revoking the original decision by returning the product
true
T/F: Cultural, Social, Individual and Psychological Factors affect all steps of the buying process?
true
T/F: Services constitute 79.4% and 69.9% of the GDP of the United States and Canada, respectively
True
T/F: although external sources are numerous, consumers typically trust these sources less than internal and personal sources of information
True
T/F: consumers by nature are naturally risk averse
true
T/F: customers don't buy pest control, they buy a bug free environment. Likewise, Lexus customers don't buy a car, they by luxury, status, comfort, and social appeal
true
T/F: it is NOT mandatory that the SWOT matrix be assessed quantitatively, but it can be informative to do so
true
T/F: long term relationships, trust, reliability, and overall goal attainment are often much more important than then price of the product
True
T/F: mass marketing involves no segmentation whatsoever
true
T/F: often the motives and values that drive consumer behavior have nothing to do with demographics
true
T/F: people do not need drills, they need to make holes or drive screws. Similarly, they do not need lawn mowers; they need shorter, well manicured grass.
true
T/F: the difference between the attraction effect and the compromise effect is if you are introducing a decoy or not
Strategic focus
The overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy is called its:
Attraction effect
The phenomenon in which one choice becomes more attractive when a product (that is inferior or defective compared to the choice) is added to the choice set -introducing a product qualities that push consumers to buy that product. EX: apple has the 64GB, 256GB, and 512GB phone. They are pushing you to choose the option in between
compromise effect
The phenomenon in which one choice becomes more attractive when a product (with more extreme product attributes) is added to the choice set
perception
The process by which we select, organize, and interpret various stimuli into a meaningful and coherent picture
market segmentation
The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
intangible
There are four major service characteristics. The first one Cannot be seen, tasted, felt, heard, or smelled before purchase. This is called _________.
perishable
There are four major service characteristics. The fourth one- Cannot be stored for later use or sales
inseparable
There are four major service characteristics. The second one cannot be separated from providers
Heterogenous
There are four major service characteristics. The third one- Quality varies; Depends on who, when, where, how
cannibalization
When BMW introduced X6, some consumers who would have purchased X5 switched to X6 instead. This did not produce real overall sales growth for BMW. This drawback of a multi-segment targeting strategy is called:
opportunities and threats
____ typically occur within the competitive, customer, economic, political/legal, technological, and/or, sociocultural environments of the firm
mass marketing
_____ ________ companies aim this approach at the entire market for a particular product. They take an undifferentiated approach that assumes that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program
demand
______ occurs only when the consumers ability and willingness to purchase a specific product backs up their want for the product
personal
______ sources include word of mouth advice from friends, family, and co workers
internal
_______ sources include personal experiences and memories and are typically the first type of information that consumer search
external
_________ sources include advertising, magazines, websites, packaging, displays, and salespeople. Consumers typically trust this source the least out of the 3.
opportunities and threats
__________ typically occur within the competitive, customer, economic, political/legal, technological, and/or sociocultural environments of the firm. a. Strengths and weaknesses d. Weaknesses and threats b. Strengths and opportunities e. Opportunities and weaknesses c. Opportunities and threats
market
a ________ is 1)people or organizations with (2) needs or wants, and with (3) the ability and (4) the willingness to buy. A group of people that lacks any of these is NOT a ______.
evoked set
a list of suitable alternaitves
compromise
a marketer introduces an option that has some extreme attributes (but not strictly worse than the focal choice). is an example of the _________ effect Apple charges a higher price for 512 GB iPhone, but you are getting a larger storage space than the one with 256 GB (therefore, the 512 GB option is NOT strictly worse than the 256 GB option)
attraction effect
a marketer needs to introduce an option that is strictly worse than the focal choice is a example of the _________ effect. For example, You want people to purchase laptop A, so you introduce laptop C, which makes A look good.
perceptual mapping
a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds
Ethnography
a qualitative research technique designed to understand cultural phenomena such as communication, shared meanings, and personal interests.
market concentration
approach focuses on a single market segment
multisegment approach
attract buyers in more than one market by offering a variety of products that appeal to different needs firms using this option can increase their share of the market by responding to the heterogenous needs of different segments the most widely used segmentation strategy in medium to large sized firms EX: Maxwell House, Kellogs and Nabisco offer a ton of cereal brands
financial
buying a home is an example of _________ risk
social
buying the right clothing is an example of _______ risk
Repositioning
changing consumers' perceptions of a brand in relation to competing brands
personal
choosing the right surgeon is a example of a ________ risk
psychographic segmentation
deals with state of the mind issues such as motives, attitudes, opinions, values, lifestyles, interests, and personality. One of the most successful and well known tools would be the VALS (values and lifestyle) strategy that divides adult US consumers into one of 8 profiles based on their level of resources and one of the three primary consumption motives (ideals, achievement, and self expression).
market specialization
firms engage in market ___________ when their intimate knowledge and expertise in one market allows them to offer customized marketing programs that not only deliver needed products, but also provide needed solutions to customers problems EX: Follett Corporation
product specialization
firms engage in product specialization when their expertise in a product category can be leveraged across many different market segments- can adopt this strategy to match different needs of a individual customer group EX:littman offers performance electronic stethoscopes for cardiologists, specially designed stethoscope for pediatric/infant use, lightweight stethoscopes for simple, physical assessment and a line for nursing and medical students
single segment targeting
firms use this when their capabilities are intrinsically tied to the needs of a specific market segment EX: New Belgium Brewing, Rayban, porsche **they full understand their customers needs, preferences, and lifestyles. Constantly refining their products to meet changing customer preferences
niche marketing
focus their marketing efforts on one small, well defined market segment or niche that has unique, specific set of needs. **typically pay higher prices for products that match their specialized needs EX: curve health creating all sorts of gyms that are customized to fit the needs of different age segments ***attractive marketing _____ is . one that has growth and profit potential, but is not so appealing that it attracts competitors
market concentration
focuses on a single market segment **firms find it most efficient to seek a maximum share in one segment EX: Southwest, Enterprise rent a car, Red bull energy drink, go pro
Unsought products
life insurance, cemetery plots, long term health insurance, and continuing education are all examples of ____________ products
Selective targeting
multiple capabilities in many different product categories Several advantages are: -diversification of the firms risks, ability to cherry pick only the most attractive market segment opportunities
geographic segementation
often plays a large part in developing market segments. EX: coca cola sells better in southern united states then in any other parts of the country. this type of segmentation looks at neighborhood profiles based on demographic, geographic, and lifestyle segments. **one of the best known geoclustering tools is Nielsen's prizm
undifferentiated target markets
one big market, no individual segments, single marketing mix - one product, one price, one placement and a single promotional effort -- to reach the maximum number of consumers in that target market.
mass market targeting
only the largest firms have the capability to execute mass market targeting, which involves the development of multiple marketing programs to serve all customer segments simultaneously. EX: Coca cola
Demographic segmentation
segmenting markets by age, gender, income, ethnic background, and family life cycle- tends to be the most widely used basis for segmenting consumer markets because this information is widely available and relatively easy to measure.
emotional
selecting a wedding photographer is a example of a ______ risk
compromise
the _____________ effect states that a consumer is more likely to choose the middle option of a selection set rather than the extreme options. For example, a car-shopper who is given three options: the low-priced basic model with no extras, a high-priced fully loaded model with all the extras, and a mid-priced model with some extras, will most likely choose the middle option.
extensive decision making
the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information
Behavioral Segmentation
the most powerful approach because it uses actual consumer behavior or product usage to make distinctions among market segments **a common use of this segmentation is to group consumers by their extent of product usage- low, medium, high and the heavy (high user) are typically the firms bread and butter *quite expensive and time consuming
behavioral segmentation
the most powerful approach because it uses actual consumers behavior or product usage to make distinctions among market segments -The process of grouping customers into market segments according to the benefits they seek from the product
Benefit segmentation
the process of grouping customers into marketing segments according to the benefits they seek from the product.
limited decision making
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
demographic
this type of segmentation example is like when Honda introduced its element utility vehicle, they targeted adventurous, high school and college aged consumers. To their surprise, Honda discovered the element was just as popular with 30 and 40 somethings who used it to haul their kids around and get groceries.
Possession utility
to increase _______ ______, the marketers may have to offer financing or layaway for large dollar purchases, delivery, and installation of products like appliances and furniture or home delivery of items such as pizza, newspapers, or the proper packaging and prompt shipment of items through the mail
high
use of comparative ads and personal selling is example of ________ involvement
one to one marketing
when a company creates a entirely unique product or marketing program for EACH customer in the target segment EX: enterprise software such as Oracle, SAP m and business objects- create customized solutions that allow firms to track customers, business processes, and results in real time, * key is personalization, quite common in luxury and custom made products
need
when a individuals current level of satisfaction does not equal their desired level of satisfaction creates a _________.
