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112 Cards in this Set
- Front
- Back
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3 steps to buying process
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prepurchase
purchase post-purchase |
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4 steps to prepurchase process
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-assessing need
-searching for information -evaluating alternatives -selecting |
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step where consumer tries to determine how much pleasure/pain will be derived from a product/service
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pre-purchase
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process in which consumers sense a discrepancy btwn current state and desired state
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assessing need (versus wants)
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4 types of attachments to goods
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self concept
nostalgic interdependence love |
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searching for info involves ____ behavior
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sorting
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6 challenges to obtaining info
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- # of products is overwhelming
- complexity of goods - time costs are great - consumers have high expectations - false sense of security - some info is useless/inaccurate |
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5 standards for consumer info at its best
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- objective
- valid and credible - understandable - complete - up-to-date |
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Why is Consumer Reports a good source of objective info?
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they don't accept advertisements
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4 costs of info search
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-time cost
-cost of gas/public transportation -cost of obtaining info -emotional costs |
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consumers will search as long as the cost of the search is __ than the ___ frrom the search
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less than expected savings
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5 rules of thumb of purchasing
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-seals of approval
-buying top of the line merch -buying high-priced goods -buying brand names -buying large size bc think is has a lower unit price |
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3 types of goods
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search
experience credence |
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type of good where consumer can gather relevant info before the purchase
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search good
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consumer obtains relevant info after purchase
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experience good
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type of good where consumer never obtains relevant info
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credence goods
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example of a credence good
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prescription meds
legal services |
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promotion of 3 types of goods
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search-stores cluster to lower consumers info search costs
experience- coupons, taste tests credence- govt regulates goods (regulating drugs) |
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info encountered while one is doing something else
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passive
i.e. billboards/ads on br stalls |
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info sought for its own sake
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actively acquired info
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2 factors that intercede between purchase intentions and actual decision
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attitudes of others
unexpected situational factors |
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stimulates brand loyalty, repurchases and word of mouth advertising
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post purchase feelings
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unhappy customers tell on avg ___ people
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11
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buyers remorse
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cognitive dissonance
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4 motivations of marketers
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maximize consumer awareness
maximize consumption maximize loyalty maximize consumer satisfaction |
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5 influences on marketing environments
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-competitive
-political-legal -economic -technological -social- cultural |
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changes in a competitive market usually occur due to these 5 factors
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-power of buyers
-power of suppliers -threat of substitutes -barriers to entry -competitors |
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product patents last ___ years
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20
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political-legal force on market
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-concern for targeting customers (children, old ppl)
-product safety issues -concern for product patents |
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economic force on market
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focus on interest rates
unemployment rates inflation rates |
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techonological force on market
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influences to whom and how we target our products
tv internet radio |
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sociocultural influences on market
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culture and subculture
bonne belle sells products to african american women |
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case where kindergarten teacher reads homosexual literature to students
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Surrey Brd of Education vs. James Chamberlain
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Surrey Brd liable for court costs of ___ million
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1.2
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elements of marketing strategy
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product
price distribution promotion |
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things considered by marketers for a product
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what goods/services to offer
customer service package design brand names warranties life cycle positioning |
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concerns behind distribution strategy
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product is easily located, with proper quantities at the right time and place
-modes of transportation -warehousing -inventory control -order processing |
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goals behind promotional strategy
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informing, persuading, influincing a consumer's purchase decision
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companies respond to competition by (5)
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reducing prices
increasing advertising introducing a new/improved product buying out the competition trying to inspire brand loyalty |
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refers to the set of perceptions that consumers have formed about a brand
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brand image
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harley davidson currently has __% of all bike sales
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22
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brand names can be protected by law with a ___
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trademark
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occurs with a replica of the product
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counterfeiting
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occurs when an original idea or product is stolen and sold
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pirating
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average age of our population is __
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increasing
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portion of a larger market whose needs differ from the market as a whole
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market segment
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3 types of external satisfaction effects
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bandwagon
veblen snob |
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consumer gets satisfaction from being like others in his/her group
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bandwagon effect
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consumer gets satisfaction from showing others that he/she has a lot of money (even if they don't)
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veblen effect
a.k.a conspicuous consumption |
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consumer gets satisfaction from having soemthing that no one else has (at least not anyone that they know)
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snob effect
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microsoft made __ billion in profits over 27 yeARS
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50
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8 stages of product development process
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idea generation
idea screening concept development market strategy business analysis product development test commercialization |
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most products are eliminated during this stage of the product development process
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idea screening
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business analysis in product development process
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sales, cost and profit projections
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product development entails..
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prototype development and testing
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5 stages of product life cycle
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product development
introduction growth maturity decline |
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3 exceptions to standard product life cycle
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fads
styles fashions |
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a job expands to fill the time available to accomplish a task
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parkinson's law
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20% of time expended produces 80% of the results
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pareto principle
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quantity of goods you can buy based on set prices and limited income
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budget constraint
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buy a group of items but can't buy them individually
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all or nothing price discrimination
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price for the privilege of buying items and then a charge per item
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two-part pricing
i.e. country club foods |
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producer generated info about products and services
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advertising
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US advertisers spend more than ___ billion each year and ___ worldwide
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237; 470
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4 types of advertising
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inform
persuade compare remind |
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4 commercial components
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familiarity
humor sexuality animals |
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system in which companis sell with consumers
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consumerspace
i.e. wearing a t-shirt with Polo horse |
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who advertises?
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business firms
nonprofit organizations professionals social agencies government |
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types of advertising- ftc classified
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informative ads
puffing ads deceptive ads comparative ads defensive ads |
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informative ads are also called
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pioneer advertising
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ads that provide consumer with specific, understandable, verifiable claims
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informative ads
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an increase in exposure to advertising leads to an increase in
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the expected utility
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the effect of expected utility of a product depends on (3)
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-the importance of the product attributes for the consumer
-the familiarity of the consumer with the product -the personal risk parameter |
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ads that don't give any relevant info but also do not mislead the consumer
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puffing ads
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ads where there is an unrealistically low price (usually only one of the item) then switch to a higher priced item
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bait and switch
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developing an advertising strategy consists of 2 major elements
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creating advertising messages
selecting advertising media |
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message strategy
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identify customer benefits
advertising appeals should be meaningful, believable and distinctive |
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message execution
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choose a tone
use memorable words |
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what should an ad accomplish
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-gain attention and interest
-inform and persuade -lead to the person buying |
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4 steps to planning the best message
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attention
interest desire action |
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percentage of people exposed to an ad
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reach
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number of times a person is exposed to an ad
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frequency
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qualitative value of a message exposure through a given medium
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media impact
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3 factors of selecting ad media
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reach
frequency media impact |
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timing in adv
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seasonal pattern
opposite seasonal same all year |
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top 5 advertisers
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proctor and gamble
philip morris general electric time warner disney |
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FTC's role in adv
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issue a consent decree
ask for ad substantiation cease or desist require corrective ad |
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Soloman says our identities are formed by an allegiance to certain ___ expressed through affiliation with product sets
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value systems
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benefits from info search
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-lower tag price
-lower full price or consumer cost -satisfaction from shopping -knowledge of whats available |
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costs of info search
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time costs
gas or transportation cost of obtaining info emotional costs |
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marketing mix variables in the target market
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product
distribution price promotion |
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PLC stage product development:
sales investment costs profits |
begins with an idea
sales are 0 investment costs high profits are negative |
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PLC stage Introduction
sales cost/customer profits competition |
low sales
high cost/customer negative profits innovators targeted little competition |
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PLC stage Growth
sales cost/customer profits target market competition |
rapidly rising sales
avg cost/customer rising profits early adopters targeted growing competition |
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PLC stages Maturity
sales cost/customer profits target market competition |
sales peak
low cost/customer high profits middle majority targeted competition begins to decline |
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PLC stage Decline
sales cost/customer profits target market competition |
decline in sales
low cost/customer declining profits laggards are targeted declining competition |
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consumers have right to seek and obtain satisfaction for damages incurred through the use of a product or service
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right to redress
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study by prawitz and lawrence in 1993 in a consumer econ class wrote letters of complaint- response results in
3 weeks complied with requests students satisfied with responses |
80%
43% 64% |
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over ___% of complaints are resolved through the BBB
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70
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process by which parties in dispute submit differences to the judgment of an impartial person appointed by mutual consent
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arbitration and mediation
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commission for investment fraud
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securities and exchange commission (SEC)
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courts usually without an attorney and only accepts claims under $6,000
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small claims
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claims and rights of many people are handled by a single hearing.
amount paid by buyers big but consumers receive little |
class action suits
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reasons why consumer fraud exists
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marketplace is complex
enforcement is difficult consumers are trusting, greedy, lack ability to judge |
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3 conmen studied in class
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Barnum and Bailey
Joe Bessimer David Hannum |
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man who buried fake giant and under well in order to prove to people that we evolved from giants
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david hannum
george hull |
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6 types of fraud
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contests
pyramid schemes charities food/health fraud medical fraud repair services |
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food/health product exempt from FDA scrutiny
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dietary supplements
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3 types of medical fraud
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fee splitting
conflict of interest denial of claims |
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fraudulent repair services
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home computers
auto repair scams service contracts |
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'free diagnosis' and take computer apart and can tell you literally anything is wrong with it
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low ball technique
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2 types of credit card 'protection' offers
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pays off your balance when youre dead (youre not even liable for that after you die!)
protects you if someone steals your card (regulations already protect you!) |
