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.