Ch. 5 Marketing

Front 1

What is consumer behavior?

Back 1

actions a person takes in purchasing and using products and services; so both before, during and after the exchange

Front 2

What are the 5 steps of the purchase decision process?

Back 2

1. Problem recognition (Perceive a Need)
2. information search (Seek Value)
3. Alternative evaluation (Assessing Value)
4. Purchase Decision (Buying Value)
5. Postpurchase behavior (Consuming, experiencing or using value)

Front 3

What is the competitive advantage one firm has over another company?

Back 3

It's superior understanding of its customers

Front 4

What are two important points in understanding consumer behavior?

Back 4

1. People are not all the same-->person variability
2. People make choices depending on the situation-->situation variability

Front 5

What is a market?

Back 5

Aggregate of individuals and or organization that have
1. needs and wants
2. ability, willingness, and authority to purchase products/services that satisfy needs and wants

Hint 5

1.

Front 6

What are two main types of markets

Back 6

Consumer and Business

Front 7

What is B2B

Back 7

Business to business
there is a buying center, and surrounded by buyers, users, gatekeepers, deciders, and influencers

Front 8

What is B2C

Back 8

Individual buyers or group buyers (family members)...with MOST 62% influenced by kids

Front 9

What is consumer market?

Back 9

Purchasers who intend to benefit form or consume the purchased product for personal use, not intending to make profits

Front 10

In Information search, what are sources of info?

Back 10

personal, commercial, public, experiential
*Women are influenced on average more than men by word of mouth

Front 11

what are the three levels of problem solving?

Back 11

1. Extensive
-high involvement, infrequently purchased, expensive, high risk, much info
2. Limited
3. Routine
-Low involvement, frequently purchased, inexpensive, little risk, little info

Front 12

what are the two theories on what drives the purchase behavior in the evaluation of alternatives stage of consumer behavior?

Back 12

1. Multiattribute attitude model
2. Value analysis

Front 13

In the multiattribute model, it says that a consumer evaluates alternatives with
A=Sum bi ei....what do the variables mean?

Back 13

A is attitude toward object
bi: belief strength to partibular attribute
ei: evaluation assigned to a particular attribute

Front 14

What is the difference with multiattribute and value analysis?

Back 14

Value suggests that people are motivated to take actions based on an attribute-consequence values schema

Front 15

During Post purchase evaluation, what can happen with the different combinations with perception and expectation?

Back 15

perception> expectation=Delight
P=E: Satisfaction
P<E: Dissatisfaction

Front 16

what are the 4 Ps in the marketing mix?

Back 16

1. Product
2. price
3. Promotion
4. Place

Front 17

In the theory of psychological needs, what is the bottom to top?

Back 17

1. physiciological needs
2. safety
3. social
4. esteem (recognition, self-esteem, status)
5. self actualization needs

Front 18

Perceptual Map

Back 18

1. Knowing where each product is in relation to each other and other competition

Front 19

what is the famous shopping list technique?

Back 19

Study done by Mason Haire of those who both instant coffee vs. ground coffee
Found instant buyers were seen as lazy and fails to plan...shows instant should rarely ever mention convenience as a reason to buy it.

Front 20

What is perception?

Back 20

process of selecting, organizing, and interpreting info

Front 21

What is selective attention

Back 21

screen out info

Hint 21

Sele

Front 22

Selective distortion

Back 22

Interpret info to support belief

Front 23

Selective retention

Back 23

Remember good/bad points

Front 24

what is the most important consumer-buying organization in society?

Back 24

Family

Front 25

what are reference groups?

Back 25

groups that form a comparison or reference in forming attitudes or behavior

Front 26

what are membership groups

Back 26

they are the group a person belongs to and have direct influence on decisions

Front 27

What are aspirational groups?

Back 27

groups an individual wishes to belong to

Front 28

what are dissociative groups?

Back 28

Groups an individual wishes not to be identified

Front 29

according to strategic vision, what are the value centered psych levels?

Back 29

Security-->freedom-->esteem-->harmony

Front 30

what are values?

Back 30

inner organized constructs that set priorities for our choices

Front 31

in the strategic vision emotional make up, what are the emotional and image based words said toward a customer?

Back 31

1. Who do you aspire to be or become?
2. How do you see yourself today?
3. What do you really want emotionally from the product?
4. how well does the product measure up?

Front 32

what are the key to success?

Back 32

know WHAT to deliver and be able to deliver the RIGHT EMOtiONAL EXPERIENCE through features, performance, brand, ownership experience and message that customers are looking for

Front 33

During information search, what are three external sources

Back 33

1. personal
2. Public
3. marketer-dominated source

Front 34

In alternative evaluation, how does a consumer assess value?

Back 34

use a evaluative criteria, and the brands cosidered then are consideration set

Front 35

What are purchase decision decisions?

Back 35

whom to buy and when to buy

Front 36

Statistics show that satisfied buyers tell X amount of people about their experience in contrast to X tell is they are dissatisfied

Back 36

satisfied: tell 3
Dissatisfied: tell 9

Front 37

In high involvement purchase decisions, what elements are usually present

Back 37

1. expensive,
2. can have serious personal consequences
3. could reflect on one's social image

* level of involvement equals level of engagement in 5-stage decision process

Front 38

In terms of marketing strategy, if the product is low involvement, and its brand is a market leader, attention is placed on what three elements?

Back 38

1. maintain product quality
2. Avoid stock out situations
3. Repetitive advertising message to reinforce consumer lmpw;edge

Front 39

what are the five situational influences that influences purchase decisions?

Back 39

1. purchase task: why engaging in decision
2. social surrounding: others present when decision is made
3. Physical surrounding: decor, music, and crowding
4. temporal effects: time of day
5. antecedent states: mood or amount of cash

Front 40

Under perception, what is selective comprehension?

Back 40

Ex: snow blower...interpreting info so that is consistent with attitudes and beliefs

Front 41

Under perception, what is selective retention?

Back 41

consumers don't remember all the info they see, read, or hear even minutes after.

Front 42

How does a company d=reduce perceived risk?

Back 42

1. Obtain seals of approval
2. secure endorsements from influential people
3. Provide free trials of the product
4. give extensive usage instructions
5. provide warranties and guarantees

Front 43

What is learning in terms of consumer behavior?

Back 43

Behaviors that result from repeated experience or reasoning

Front 44

what is attitude:

Back 44

tendency to respond to soemthing in a consistently favorable or unfavorable way

Front 45

what is beliefs

Back 45

" A consumer's perceptions of how a product or brand performs

Front 46

How to marketers try to change consumer attitudes?

Back 46

1. change beliefs about the extent to which a brand has certain attributes (mayo omega 3 example)
2. Changing the perceived importance of attributes: pepsi adding freshness as an important attribute
3. adding new attributes to the product: colgate add new ingredient...

Front 47

What is psychographics?

Back 47

provide insight on consumer needs and wants; famous is VALS system from SBI

Front 48

VALS explains why and how consumers make purchase decisions based to the following:

Back 48

1. Ideals-motivated groups (thinkers and believers)
2. Achievement motivated group (achievers and Strivers)
3. Self-expression-motivated groups (Experiencers and Makers)
4. High and Low resource groups (innovators and Survivors)

Front 49

what is lifestyle?

Back 49

mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them

Front 50

what are Sociocultural influence on consumer behavior

Back 50

personal, reference groups, family, and culture and subculture

Front 51

Ways of personal influence

Back 51

Opinion leaders: those who have social influence on others
Word of mouth: people influencing each other in personal conversations.

Front 52

What are the three sources of family influence on consumer behavior?

Back 52

1. consumer socialization
2. passage through the family life cycle
3. decision making within the family

Front 53

What is consumer socialization?

Back 53

process by which people acquire skills, knowledge, and atitudes necessary to function as consumers

Front 54

What is family life cycle:

Back 54

family's progression from formation to retirement, each phase bringing with it distict purchasing behaviors

Front 55

What does family decision making process mean?

Back 55

that there is a spouse-dominant and joint decision making

Front 56

in family decision making, what are the five roles?

Back 56

1. info gatherer
2/ influencer
3. decision maker
4. purchaser
5. User

Front 57

What is culture?

Back 57

set of values, ideas, and attitudes that is learned and shared among members of a group.