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52 Cards in this Set
- Front
- Back
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What are the 3 TYPES of REFERENCE GROUPS? give examples of each
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1. INFORMATIONAL reference group
ex. seek friends advice on DVD player, Michael Jordan promotes Nike shoes 2. UTILITARIAN reference group ex. wear formal suit when working, wear jeans with friends ex. even your friends won't tell you when u have bad breath 3. VALUE-EXPRESSIVE reference group ex. imitate people you want to be like |
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What are examples of PUBLIC VS. PRIVATE BRAND?
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PUBLIC: car
PRIVATE: mattress, hair dryer |
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What are the 4 CATEGORIES of products and brands?
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1. Public Necessities
ex. automobile 2. Public Luxuries ex. golf clubs, sail boats 3. Private Necessities ex. mattress 4. Private Luxuries ex. bread maker |
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What is the reference group INFLUENCE on PRODUCT and BRAND for PUBLIC NECESSITIES?
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Public Necessities:
influence on product is WEAK influence on brand is STRONG |
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What is the reference group INFLUENCE on PRODUCT and BRAND for PUBLIC LUXURIES?
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Public Luxuries:
influence on product is STRONG influence on brand is STRONG |
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What is the reference group INFLUENCE on PRODUCT and BRAND for PRIVATE NECESSITIES?
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Private Necessities:
influence on product is WEAK influence on brand is WEAK |
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What is the reference group INFLUENCE on PRODUCT and BRAND for PRIVATE LUXURIES?
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Private Luxuries:
influence on product is STRONG influence on brand is WEAK |
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What are the 2 TYPES of HOUSEHOLDS? give examples of who is in each
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1. Family
ex. blood, marriage, adoption 2. Non family ex. roommates, gf/bf |
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What are the 2 TYPES of FAMILY? give examples of who is in each
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1. Nuclear family
ex. Parent and kids 2. Extended family ex. grandparents, cousins, uncles |
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Outline the TRADITIONAL FAMILY LIFECYCLE
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1) Young single
-Income situation: below average, increasing discretionary spending -Focus of the life stage: considerable freedom 2) Newly married Income situation: good Focus of the life stage: creation of a new household 3) Full nest I (children 1-5????) Income situation: incurring financial debt Focus of the life stage: children and home 4) Full nest II (age of children???) Income situation: income improving Focus of the life stage: home 5) Full nest III (children 12+) Income situation: improving, saving for college Focus of the life stage: moving outside of home 6) Empty nest I Income situation: continue to improve, kids moving from home Focus of the life stage: outside of home and on extended family 7) Empty nest II (retirement age) Income situation: drop in income, possible financial stress Focus of the life stage: extended family 8) Solitary survivor Income situation: lower income Focus of the life stage: extended family (grandkids) |
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T or F: The traditional family life cycle is applicable to everyone's life
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FALSE
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What are some RECENT CHANGES in family?
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female employment, marriage and divorce, childbirth and childrearing practices, nontraditional families, non family households
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What is BENEFIT SEGMENTATION?
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?
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What is the example we used in class for BENEFIT SEGMENTATION?
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the toothpaste market by Russel Haley
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What 4 segments are in BENEFIT SEGMENTATION by Russell Haley? discuss the key benefits, lifestyle characteristics, brands, and who it targets
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1) Sensory segment
Key benefit: flavor & product appearance Lifestyle characteristics: hedonistic Brands: colgate Who? children, ppl who use mint flavor 2) Sociable segment Key benefit: brightness of teeth Lifestyle characteristics: active Brands: ultra brite Who? teens, young ppl, smokers 3) Worrier segment Key benefit: decay prevention Lifestyle characteristics: conservatives Brands: crest Who? large families, heavy users 4) Independent segment Key benefit: price Lifestyle characteristics: value oriented Brands: the cheapest Who? men, heavy users |
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What is PSYCHOGRAPHIC SEGMENTATION?
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-based on consumer lifestyles
-AIO: activities, interests, opinions |
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Give an example of PSYCHOGRAPHIC SEGMENTATION...
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VALS: identifies the psychological motivations that predict consumer differences.
Primary motivation of VALS: -ideals -achievements -self expression LOOK AT BOOK EXHIBIT 15.3 |
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What is PERSON/SITUATION SEGMENT?
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?
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WHAT IS AN EXAMPLE OF PERSON/SITUATION SEGMENT?
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?
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What is GEODEMOGRAPHIC SEGMENTATION?
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based on the neighborhood, geography, and zip code
ex. PRIZM system ... LOOK THIS UP!!! |
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What are the 5 CATEGORIES of PRODUCT POSITIONING? give an example of each
LOOK THIS UP |
1. Positioning by attribute
2. Positioning by use or application 3. Positioning by product user 4. Positioning by product class 5. Positioning by competitors |
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In CONSUMER SATISFACTION, what does the EXPECTANCY DISCONFIRMATION PARADIGM say?
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it says satisfaction is a function of three variables:
1. Prepurchase Expectations: expectations regarding product performance formed prior to purchase 2. Postpurchase Perceptions: perceptions of product performance resulting from experience with the product 3. Disconfirmation: comparison of perceived performance with prior expectations, leading to positive or negative disconfirmation or confirmation |
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fill in CONSUMER DISSATISFACTION & COMPLAIN
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?
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fill in CONSUMER DISSATISFACTION & COMPLAIN
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?
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What are the 3 CATEGORIES OF INNOVATION, in Product Diffusion & Adoption?
define and give examples of each |
1. Continuous innovation
-don't have to change your behavior -different product. result is the same ex. PepsiOne & Pepsi, Crayons environmentally friendly 2. Dynamically continuous innovation - consumer change his behavior a little bit when he uses product ex. electric toothbrush from normal toothbrush 3. Discontinuous innovation - consumer has to change his behavior a lot when using product ex. airplane, PC, oven, microwave |
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What is DIFFUSION?
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?
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What is ADOPTION?
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?
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What is the DIFFUSION / ADOPTION CURVE?
LOOK up more info?? |
Innovators: 5%, most important
Early adopters: 10-15% Early majority: 34%, at this point the company makes real money Late majority: 34% Laggards: 5-16% |
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What are characteristics of INNOVATORS?
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- very educated people
- large income - young - socially active - adventuresome - opinion leaders - have experience with other product class |
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What are PRODUCT CHARACTERISTICS AND THE ADOPTION PROCESS?
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Compatibility: camera has SD card, to be compatible
Trialability: test driving a car Observability: satellite disks???, clothing styles Speed: weight loss programs Simplicity Competitive advantage: (value for money) CD player for cars Perceived risk: laser eye surgery Product symbolism: clothing, buy stuff not purely for the functionality Marketing effort also matters |
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What is Attitude toward the Ad (Aad) made up of?
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Aad --> Ao, Aact
LOOK THIS UP TO UNDERSTAND |
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Aad --> Ao, Aact
Any problems with the above claim? |
??
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What is The Elaboration Likelihood Model (ELM)? explain the 2 routes
LOOK UP 17.3 |
1. The central routes to persuasion: facts, product, features
2. The peripheral routes to persuasion: entertainment, colors, likability |
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From a consumer perspective, which route is more popular?
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?? look up??
central route |
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From a marketer perspective, when do we want consumers to engage in peripheral route processing?
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?? look up ??
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What is SALES PROMOTION?
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??
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What are 2 different KINDS of SALES PROMOTION? explain and give examples of each
LOOK UP |
1. Trade promotion
2. Consumer promotion |
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TRADE PROMOTION??
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?
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How does consumer promotion affect our purchasing behavior? (4 ways)
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- Purchase probability
Whether or not we will purchase it - Purchase quantity Buy larger amount at a cheaper price Only works if consumer buys more and USES more - Purchase timing Some promotions may last for limited time, or may be the week after - Purchase location Promotions may be only valid at certain stores |
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What tends to be the most effective form of promotions?
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coupons
-because of coupons we bought something we: didn’t need Never tried Dif brand More Sooner later |
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What is PERSONAL SELLING?
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Direct personal interactions between a potential buyer and a salesperson
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What kinds of products are traditionally promoted through personal selling?
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Houses, cars, b2b, etc.
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What is PUBLICITY?
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Any UNPAID form of communication
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Regarding PRICE PERCEPTIONS, what are the 2 KINDS of REFERENCE PRICE?
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1. Internal reference price
?? look up ??? 2. External reference price |
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T or F: Perception of price influences decisions
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true, $5 calculator vs. tv example
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What reference states are important in the PRICING FRAME?
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1. Global reference states (compare with their personal wealth)
How does affect you? Is it gong to make a difference in their life? Consumer wealth 2. Local reference states What are you referring to? Base prices (both internal and external reference prices) The base price can be the price on the shelf, or competitors price, or price u had in mind |
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What is the difference between absolute vs. percentage-based pricing frames?
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absolute - express in $
percentage-based - express in % |
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LOOK UP PRICE INCREASE AND DECREASE DISCOUNTS ... FRAMES??
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??
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Who would gain more share from their competitor when they discount? nationals or store brand?
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NATIONAL
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Explain ASYMMETRIC PRICE COMPETITION using loss aversion?
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For national brand:
Strength: price or QUALITY Weakness: PRICE or quality For store brand: Strength: PRICE or quality Weakness: price or QUALITY Price discounts: (LOSS AVERSION) Improve strength or WEAKNESS for national brand Improve STRENGTH or weakness for store brand |
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T or F: According to loss aversion, improvement on WEAKNESSES is more effective than equivalent improvement on STRENGTHS.
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true
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T or F:
Price discounts benefit NATIONAL BRANDS more than STORE BRANDS. It is generally easier to move consumers UP in quality than DOWN in quality. Asymmetric competition favors improvement to WEAKNESS rather than improvement to STRENGTHS. |
true
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