Principles of Marketing
True or false: Universal sets are a subset of retrieval sets and evoked sets.
False
Firms position products based on which of the following? (Choose every correct answer.)
Salient attributes Symbols Value
Which stage in the consumer decision process comes immediately after need recognition?
Search for information
The motive that drives Conrad to buy a large bottle of Gatorade after running 3 miles and drink it quickly is a(n) need.
physiological
What best describes the notion of market positioning?
the place the product occupies in consumers' minds relative to competing products
What are the two types of information search? (Choose every correct answer.)
External search, Internal search
When a consumer uses many evaluative criteria, such as fuel economy, acceleration speed, and the availability of extra features, to make a decision about purchasing a car, the consumer is doing what?
Basing the decision on important features of the car
Suppose that Coca-Cola were to divide its market up into segments based on the amount of soda consumers drink (heavy, medium, and occasional soda drinkers). What type of segmentation does this represent?
Behavioral
______ segmentation forms market segments based on the way consumers use a product, such as more frequently or with greater loyalty.
Behavioral
What type of segmentation categorizes consumers on the basis of the outcomes they hope to derive from a product or service?
Benefit
How does developing descriptions of each market segment help firms? (Choose every correct answer.)
By identifying similarities within market segments By identifying differences across market segments
In addition to customer satisfaction and loyalty, which of the following is also one of the potential post purchase outcomes?
Cognitive dissonance
Which of the following is an example of occasion segmentation for a chocolate maker?
D) The company offers some of its chocolates in heart-shaped boxes for Valentine's Day.
________ segmentation variables include age, income, and gender.
Demographic
When marketers seek to evaluate market attractiveness, what must they do first?
Determine whether the segment is worth pursuing
Which of the following consist of a set of salient, or important, attributes about a particular product?
Evaluative criteria
Jamie wants to buy a car. She reads car reviews online, asks her friends for advice, and visits the websites of all the major car manufacturers. Next, she goes to several car dealerships to test-drive cars. Jamie is engaging in which type of problem solving to select a car?
Extended
If you are motivated by physiological needs to make a purchase, which product would you buy?
Food
Which of the following are marketing segmentation approaches? (Choose every correct answer.)
Geographic, demographic, psychographic, benefit, behavioral
When establishing its overall segmentation strategy or objectives, what must the firm keep in mind? (Choose every correct answer.)
Its mission and objectives Its current situation
In which situation did an alternative evaluation option occur within the search process?
Kevin searches for a new car on the Internet before visiting the "The Mile of Cars" store
When marketers combine segmentation methods, which approaches do they typically use to design a product or service? (Choose every correct answer.)
Lifestyles Benefits
Place the steps of the consumer decision.
Need recognition search for information evaluation of alternative's purchase decision post-purchase evaluation
segmentation is a very specific form of behavioral segmentation by which segments are formed based on when a product or service is purchased or consumed.
Occasion
Maslow's Heirarchy
PASLES (Physiological, Activity, safety, love, esteem, self-actualization)
What is used to display, in two or more dimensions, the positions of products or brands in the consumer's mind?
Perceptual map
Need recognition would be greatest in which situation?
Pete returned home from work to find that his refrigerator is broken and that his refrigerated and frozen food must be thrown out.
Marketing mix
Product, Price, Place, Promotion
Which of the following factors typically influence the consumer decision process the same way each time? (Check all that apply.)
Psychological Social
What analytical method does a firm typically employ to assess the target market and its own competencies?
SWOT analysis
steps part of the segmentation, targeting, and positioning process?
Segmentation: 1. Establish strategy or objectives 2. Use segmentation methods Targeting: 3. Evaluate segment attractiveness 4. select target market Positioning: 5. identify and develop positioning strategy
Which of the following are examples of self-values? (Choose every correct answer.)
Self-respect Self-fulfillment Sense of belonging
______ are goals for life, not just the goals one wants to accomplish in a day. They are the overriding desires that drive how a person lives his or her life.
Self-values
Which of the following elements affect the consumer search process? (Choose every correct answer.)
The locus of control Perceived benefits versus perceived costs Actual or perceived risk
Why would a firm record the number of abandoned virtual carts on its website?
To assess the conversion rate
After establishing overall objectives, why do marketers then use a particular method or combination thereof to identify and describe market segments?
To help understand the profile of each segment
True or False: A firm assesses attractiveness of a target market and its own competencies using a SWOT analysis.
True
True or false: Consumers often evaluate alternatives while still engaged in the search process.
True
True or False: Lifestyles are a component of psychographic segmentation that describes how an individual lives his or her life to achieve goals.
True Lifestyles, the third component of people's psychographic makeup, are the way we live our lives to achieve goals.
Limited problem solving is most likely to occur under which condition?
When the consumer has a purchase decision that calls for, at most, moderate effort and time
Which of the following are examples of external searches for information when looking to purchase a new car? (Choose every correct answer.)
You ask your brother how he likes his new car. You purchase a copy of Consumer Reports. You browse the manufacturer's website.
According to the consumer decision process, after consumers recognize the need for a product, they then engage in - quiz
an information search
Southwest Airlines promotes its Rapid Rewards program to reward frequent flyers with benefits like free travel vouchers, priority seating, and premium beverages. This is an example of ______ segmentation.
behavioral
When a firm offers customers a loyalty card for car washes, the firm is employing loyalty segmentation, one of two common types of
behavioral segmentation
The majority of products and services are likely to satisfy - quiz
both functional and psychological needs
What are the three components that make up a person's attitude? - quiz
cognitive, affective, behavioral
Benefit segmentation is often effective because it is relatively easy to portray a product's or service's benefits in the firm's
communication strategies
Market positioning is done so that the target customers have an understanding of the product offered by the company in comparison with
competing products
When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs it is using a(n) ________ targeting strategy.
concentrated
A perceptual map is used in developing a positioning strategy in order to display the position of the products or brands in the ______ mind.
consumer's
One of the factors that affects a consumer's search process involves weighing the perceived benefits of a search against the perceived
costs
Psychographics is a segmentation method that delves into how consumers actually
describe themselves
What is the first step marketers use to derive a perceptual map?
determine consumers' perceptions and evaluations of the product or service in relation to competitors'
Dell targets various market segments, such as college students, business professionals, and home users, and designs separate computer models that appeal to each market. This is an example of
differentiated marketing
In Maslow's hierarchy, _____ needs allow people to satisfy their inner desires. (Enter one word in the blank.)
esteem
Taking a yoga class or a meditation class to maintain a satisfied outlook on life is appealing to which need in Maslow's hierarchy?
esteem
Julio is familiar with several brands of mobile phones, but he plans to consider only two brands when he purchases his next phone. Those two brands are his
evoked set
Octavia is in the market for purchasing a new automobile, but she will only consider buying models made by American companies. The American car makers are part of Octavia's
evoked set
Consumers often use Blank______ problem solving for risky purchase decisions.
extended
An ______ search is when buyers look for information beyond their personal knowledge to help make the buying decision, such as checking the Internet, asking a friend, or visiting a showroom.
external
Segmentation Approaches
geographic, demographic, psychographic, behavioral (benefit)
Segmentation Methods
geographic, demographic, psychographic, benefits, behavioral
Whenever Laura buys shampoo, she always automatically reaches for the same brand and puts it in her shopping cart with no thought or effort. Laura is engaged in
habitual decision making.
Market positioning involves a process of defining the marketing mix variables so that the target customers
have a clear, distinctive understanding of the product
Mike was in the local deli and saw a display for a new flavor of sliced ham. He had not planned to buy any ham, but decided on the spot to buy a pound to try it. Mike's purchase represents - quiz
impulse buying
Horace needs a new pair of running shoes. He first thinks about the last pair he bought, how comfortable they are, and how well they have held up. In this example, Horace is conducting a(n) ______ search for information.
internal
Accessing information from one's own memory and knowledge is known as a(n)
internal information search.
Consumers may have different levels of Blank______, which is known as the consumer's degree of interest in a product or service.
involvement
Randy is relatively indifferent when it comes to the purchase of a six-pack of beer because he will drink any brand that is fairly inexpensive. His low degree of interest in beer classifies him as a low-_____beer buyer. (Enter one word in the blank.)
involvement
The component of segmentation that is determined by how we live our lives to achieve goals is called
lifestyle
Wayne buys a new laptop every two years. At this point, rather than research different brands, he simply orders the latest version of the one he already has. For Wayne, the laptop is a(n) _____ problem-solving purchase experience.
limited
Jamie loves Lululemon apparel for its style and comfort. She needs new yoga pants, so she purchases a pair at Lululemon. This is an example of which type of purchase decision? - quiz
limited problem solving
Hallmark sells Valentine's Day cards with romantic quotes that are appealing to
love needs
In light of the high costs associated with finding new customers who feel that a brand can meet their relevant needs and are willing to exclude competitors, today's companies are using ______ segmentation and investing in initiatives to retain their most profitable customers.
loyalty
Panera offers a My Panera card, which allows users to earn rewards every time they purchase food or drink. This is an example of ________ segmentation. - quiz
loyalty
Which factor does NOT directly influence how the consumer makes a purchase decision?
macroeconomic factors
The process of dividing the market into groups of customers who have different needs, wants, or characteristics is called
market segmentation
A manufacturer of hats concentrates all its efforts on cost containment by offering the product in only one size but in a variety of colors, using a one-size-fits-all approach. This involves a ________ targeting strategy.
mass marketing
Lands' End allows customers buying shirts to choose from a variety of fabrics and types of collar and sleeves based on the customer's specific measurements, capitalizing on new technologies to mass customize its products and services. This is an example of
micromarketing
A(n) _____ is a basic need that drives consumers to solve a problem and satisfy a need, such as a headache that leads a person to purchase a pain reliever.
motive
The impetus that pushes consumers to satisfy their unmet needs, such as having no laundry detergent to do the wash, is a(n)
motive
Because each segmentation method has its unique advantages and disadvantages, most firms often employ
multiple methods
The discrepancy between a consumer's actual state and desired state is associated with which step in the consumer decision process? - quiz
need recognition
Ellie's Deli offers good sandwiches and fast service to its lunchtime customers from a nearby university. It also delivers the same sandwiches packaged with side dishes as part of its catering services. This is an example of
occasion segmentation
The social influences that affect a consumer's behavior do NOT include
perceptions
The final step in the consumer decision-making process, and a very important element in retaining and building a loyal customer base, is
postpurchase behavior
Sometimes called buyer's remorse, _______ is the internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behavior. - quiz
postpurchase cognitive dissonance
Loyal customers buy a substantial amount from the firm. These loyal customers are the most ______ in the long term to the firm.
profitable
While some segmentation methods rely on external descriptions and factors to break down the market, ______ segmentation relies on consumers' descriptions of themselves.
psychographic
Consumer decision making about products and services is influenced by the configuration of the market mix, social influences, ______ factors, and sociological factors.
psychological
For the ________ criteria to be met when evaluating segment attractiveness, the consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it. - quiz
reachable
When looking for a new car, Abe considers both American- and foreign-made vehicles, but his father and friends both encourage him to buy an American-made brand. Which social factor explains this type of influence? - quiz
reference groups
When Akeelah is thinking about where she would like to eat lunch, she remembers five places close by where she has eaten before. Although she would not revisit some of them, these restaurants are part of Akeelah's ______ set.
retrieval
When consumers are engaged in the consumer decision process, the specific brands or stores they can readily recall in a product category are referred to as their _____ set. - quiz
retrieval
All of the brands that Miguel can easily call to mind for laundry detergents, whether he would consider buying them or not, comprise his
retrieval set
Betty buys hand soap for her kitchen and bathrooms in order to prevent the spread of germs. She is motivated by a which of the following needs?
safety
The ______ strategy must be consistent with and derived from the firm's mission and objectives, as well as its current situation—its strengths, weaknesses, opportunities, and threats (SWOT).
segmentation
After evaluating each market segment's attractiveness, the next step in the STP process is
selecting a target market
______ is the image people ideally have of themselves.
self-concept
CoverGirl often produces advertisements featuring smiling and happy-looking young people using its makeup products. This tactic relates to ' - quiz
self-concept.
Another term for self-concept is
self-image
Individuals in different segments should have _____ within the segment and _____ across the segments.
similarities; differences
The external Blank______ environment that influences consumer behavior includes the consumer's family, reference groups, and culture.
social
Retailers use Blank______ to see how well they are doing at turning potential buyers into actual buyers.
the conversion rate
The consumer decision process is best defined as
the steps consumers experience when making a purchase
Firms position their products based on methods such as
the value proposition, salient attributes, symbols, and competition
STP (segmentation, targeting, and positioning) analysis occurs during which step of the marketing planning process?
third
True or false: Situational factors sometimes override psychological and social issues.
true
When everyone might be considered a potential user of its product, a firm likely uses a(n) ________ targeting strategy.
undifferentiated strategy
Targeting Strategies
undifferentiated, differentiated, concentrated, micromarketing
Drag and drop each of the following targeting strategies against their corresponding examples where such strategies can be employed.
undifferentiated: a firm produces basic commodities like sugar, milk, an packaged icedifferentiated: proctor and gamble offers Pantene, head and shoulders, Aussie and Wella shampoosconcentrated: an infomercial firm sells a gadget to better fry and flip eggs in cookingmicromarketing: a florist designs bouquets for a bride and five attendants
The collection of all possible alternatives for a decision, even those the buyers would not consider and might not even be aware of, is referred to as the
universal set
