Marketing Exam 2

What are the five parts to the buyer decision process

1) Need recognition 2) Information search 3) evaluation of alternatives 4) Purchase Decision 5) Post-purchase behavior

________ is the degree to which an innovation fits the values and experiences of potential consumers.

Compatibility

refers to an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.

Competitive advantage

refers to a market-coverage strategy in which a firm goes after a large share of one or a few smaller segments

Concentrated (or niche marketing)

Purchased frequently and immediately with little comparison shopping, low priced, mass ads and promotions

Connivence good

deals with what is bought by the customer. For example, people who buy an Apple iPad are buying much more than just a tablet computer. They are buying entertainment, self-expression

Core customer value

What are the factors influencing consumer behavior?

Cultural, Social, Personal, Psychological, Buyer

Learns basic values perceptions wants and behaviors from family and other important insutitions

Culture

Nations, regions, states, counties, cities, neighborhoods, population density (urban, suburban, rural), climate

Geographic Segment

a buyer recognizes a problem or a need

Need Recognition

Buyer purchases a product or service for the first time

New Task

A person's ___ affects the goods and services bought. For example, construction workers often buy their lunches from industrial catering trucks that come out to the job site.

Occupation

people within a reference group who exert social influence on others

Opinion Leaders

means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. To reduce uncertainty, buyers look for signals of service quality. They draw conclusions about quality from the place, people, price, equipment, and communications that they can see.

Service intangibility

means that services cannot be stored for later sale or use. Some doctors charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up.

Service perishability

means that the quality of services depends on who provides them as well as when, where, and how they are provided. For example, within a Marriott hotel, one registration-counter employee may be cheerful and efficient, whereas another standing just a few feet away may be grumpy and slow.

Service variability

_________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible

Services

Not determined by a single factor, but is measured as a combination of occupation, income, education and wealth

Social Class

groups and social networks, family, roles and status

Social Factors

buyer reorders without any modification

Straight rebuy

Groups of people with shared value systems based on common life experiences. Include religions, race, and geographic regions

Subculture

Which of the following is an example of a shopping product? laundry detergent television candy fast food toothpaste

TV

Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________.

a core customer value

GI Jane recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The GI Jane product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line. a. crowdsourcing b. idea screening c. concept testing d. concept development e. business analysis

b. idea screening

Amazon recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through weeks of customer loyalty training. This buyer-seller interaction is referred to as ________ marketing. a. horizontal b. interactive c. advocacy d. social e. internal

b. interactive

A baby boomer decides to purchase a BMW to impress others with her success. This illustrates the importance of understanding the role of ________ in the marketing process. a. personality b. motive c. attitude d. learning e. perception

b. motive

a person holds a thought of something

belief

Stores offering low-quality alternatives to luxury products at low prices most likely follow a ________ positioning strategy.

less-for-much-less

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

product development

Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation

Demographic Segment

life style changes usually result from

Demographic and Life Changing events

refers to a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Differentiated (or segmented marketing)

involves actually differentiating the firm's market offering to create superior customer value.

Differentiation

When money effects your spending habits or how the economy is doing

Economic situation

How consumer process information to choose among alternative brands

Evaluation of alternatives

The most important consumer buying organization in society

Family

What are the three things that effect a persons lifestyle?

Activities (Work, Shopping) Interests (Food, Fashion) Opinions

They need to develop product and service features, a design, a quality level, a brand name, and packaging

Actual Product

Occasions, benefits, user status, usage rate, loyalty status

Behavioral Segment

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

a customer may look into different products of similar task

Information search

means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. In services marketing, service quality depends on both the service deliverer and the quality of delivery. All new hires at Zappos —at all levels of the company—complete a four-week customer-loyalty training regimen.

Interactive marketing

means that the service firm must orient and motivate its customer-contact employees and supporting service employees to work as a team to provide customer satisfaction. For example, Zappos starts by hiring the right people and carefully orienting and inspiring them to give unparalleled customer service.

Internal marketing

changes in an individuals behavior arising from experience. This drives a strong stimulus that calls for action

Learning

A persons pattern of living as expressed in his or her views

Lifestyle

If the customer drive is strong and satisfying, and the product is at hand the are

Likely to buy the item

dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Market Segmentation

consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.

Market Targeting

is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations

Micromarketing

Buyer wants to modify product specification, prices, terms, or suppliers

Modified Rebuy

A need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Motivation

The process by which people select, organize and interpret information to form a meaningful picture of the word.

Perception

age and life-cycle stage, economic situation, lifestyle, personality and self-concept

Personal behavior and influence

The unique physiological characterstics that distinguishes a person or group

Personality

consists of arranging for a market offering to occupy a clear, distinctive, and desirable place, relative to competing products in the minds of target consumers.

Positioning

How you feel about a product once you have bought the product and used it

Postpurchase Behavior

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.

Product Mix

Social class, lifestyle, personality

Psychographic Segment

motivation, perception, learning, beliefs and attitudes

Psychological influence and behavior

Buy the most preferred brand due to research or due to personal attitude

Purchase Decision

Consists of the activities people are expected to perform according to the people around them

Role

possessions that contribute to and reflect a person identity (we are what we consume)

Self Concept

means that services cannot be separated from their providers, whether the providers are people or machines. Customer coproduction makes provider-customer interaction a special feature of services marketing. Both the provider and the customer affect the service outcome.

Service inseparability

refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Undifferentiated (or mass marketing)

Fads are characterized by their ________.

Unusually high sales and rapid decline

In which of the following cases is little or no test marketing most likely recommended for a new product?

When the costs of developing and introducing the product are low

the personal words and recommendations of trusted friends and family, tend to be more credible than coming from commercial sources

Word of mouth influence

Which of the following is an example of a convenience product? a. candy b. furniture c. life insurance d. automobile e. refrigerator

a. candy

A company's external sources of new product ideas include its ________. a. distributors b. managers c. salespeople d. engineers e. manufacturing staff

a. distributors

Which of the following is a personal factor that influences a consumer's buying behavior? a. life-cycle stage b. motivation c. status d. family e. social networks

a. life-cycle stage

. Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________. a. test marketing b. portfolio analysis c. commercialization d. internal marketing e. business analysis

a. test marketing

buying is shaped by the _______

age and life cycle

a persons feeling and tendencies toward an object or idea

attitude

around the core benefit and actual product by offering additional consumer services and benefits.

augmented product

Which of the following terms is used to describe a specific mix of human traits that may be attributed to a particular brand? brand personality brand architecture brand loyalty brand equity

brand personality

Which of the following costs is most likely associated with commercialization? building or renting a manufacturing facility determining a product's planned price, distribution, and marketing budget developing a prototype of a product using simulated tests to measure market capacity paying groups of consumers for participating in crowdsourcing activities

building or renting a manufacturing facility

The marketing manager at Frizzles' Eateries targets customers who are working to lose weight but who still want to dine out. The restaurant chain offers a wide variety of low-fat, low-calorie meals that appeal to dieters. Frizzles' approach is best referred to as ________ segmentation. a. age and life-cycle b. user status c. benefit d. demographic e. geographic

c. benefit

A product line is most likely too long if managers can ________. a. decrease costs by adding items b. increase market share by adding items c. increase profits by dropping items d. decrease costs by dropping items e. increase profits by adding items

c. increase profits by dropping items

Gold Class Electricals, a consumer-electronics firm, targets market segments based on factors such as country, age, social class, usage rate, and benefits sought. The company divides its markets based on ________. a. demographic variables b. geographic regions c. multiple segmentation bases d. behavioral variables e. psychographic segmentation bases

c. multiple segmentation bases

Susan has been redecorating her new condo for a year and searching for the perfect rug. She is carefully selecting every item. Susan finds a rug that matches her color scheme and décor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) ________. a. shopping product b. convenience product c. specialty product d. industrial product e. capital product

c. specialty product

gain competitive advantage through the way they design their channel's coverage, expertise, and performance.

channel differentiation

Buying behavior of final customer is?

consumer buying behavior

culture, subculture, social class

cultural factors

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables. a. geographic b. psychographic c. universal d. demographic e. Behavioral

d. demographic

Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes? a. sales outsourcing b. product modification c. industry repositioning d. product harvesting e. marketing mix modification

d. product harvesting

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables. universal psychographic demographic behavioral geographic

demographic

. Which of the following is true about the introduction stage of a new product? a. Profits are typically high. b. Promotion spending is relatively low. c. Less money is needed to attract distributors. d. Companies tend to avoid basic versions of the product. e. Sales growth tends to be slow.

e. Sales growth tends to be slow.

A chiropractor adjusting the spine of a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic? a. tangibility b. intangibility c. perishability d. variability e. inseparability

e. inseparability

Bose promises "better sound through research." This is an example of ________. a. people differentiation b. channel differentiation c. price differentiation d. services differentiation e. product differentiation

e. product differentiation

Jeff is in the process of buying a new car. He carefully analyzes the features that he wants in a car, and perceives significant differences in price, quality, and features among three of his favorite models. He rates the models on each factor and ranks them in the order of his preference. To which of the following stages of the buyer decision process will Jeff most likely proceed next? a. postpurchase behavior b. evaluation of alternatives c. information search d. need recognition e. purchase decision

e. purchase decision

A(n) ________ reflects the general esteem given to the different roles of a person by society. a. motive b. attitude c. belief d. tradition e. status

e. status

A marketing firm has been assigned the task of watching trends in spending, personal income, savings, and interest rates. The marketing firm is most likely gathering information about consumers' ________.

economic situations

These create pressure to conform

groups and social networks

Compared with undifferentiated marketing, differentiated marketing is more likely to lead to ________. smaller market share in the industry reduced sales in each market segment weaker product position in each market segment higher costs of doing business redundancy in product design across market segments

higher costs of doing business

A company or brand image should convey a product's distinctive benefits and positioning.

image differentiation

When the size, purchasing power, and profiles of a market segment can be determined, the market segment is said to be ________. actionable substantial measurable accessible observable

measurable

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices? a. more-for-the-same b. more-for-less c. same-for-less d. more-for-more e. less-for-much-less

more-for-less

hiring and training better people than their competitors.

people differentiation

Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process? alternate evaluation need recognition postpurchase behavior purchase decision information search

postpurchase behavior

A detailed version of a product idea stated in meaningful consumer terms is a ________.

product concept

brands can be differentiated on features, performance, or style and design

product differentiation

Bass Pro Shops recognizes that outdoors enthusiasts are a diverse group. Likely segments include hunters, campers, and boaters. What is this segmentation method called? benefit user status usage rate psychographic behavioral

psychographic

A shoe company's ads feature the members of a popular country music band. Product sales increase significantly among the band's fans. From the fans' viewpoint, the band is a ________.

reference group

Some companies gain____________ through speedy, convenient service.

services differentiation

Each role carries _____ reflecting the general esteem given to it by society

status

What are the three types of buying decisions

straight rebuy, modified rebuy, new task