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49 Cards in this Set
- Front
- Back
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What are the steps in the consumer purchase decision process?
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The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
problem recognition (perceiving a need, information search (seeking value), alternative evaluation (assessing value), purchase decision (buying value), postpurchase behavior (consumption or use). |
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What is problem or need recognition and how does it occur?
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Problem Recognition: Perceiving a need
Perceiving a difference between a person’s ideal and actual situations big enough to trigger a decision Can be triggered internally Can be triggered by advertisements or salespeople |
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What is the difference between internal and external information search?
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Information Search: Seeking Value
When is search internal? For frequently purchased products When is search external? When past experience or knowledge is insufficient The risk of making a wrong decision is high Cost of gathering info is low |
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What are evaluative criteria and what is a consideration set?
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Evaluative Criteria are the factors which represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.
Consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. |
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How is elimination (of alternatives) by aspects different from the Fishbein multiattribute model of alternative evaluation?
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Elimination by aspect: sort the brand and the features then rank them by excellent to poor.
Fishbein give each attribute a number ranking, then do the weighted average and find out the max points a brand can have, then calc the rankings of each mult. by the weight |
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What is cognitive dissonance? How can it be reduced?
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cognitive dissonance is the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
it can be reduced by: After purchase, consumers seek to affirm choice Seek approval from others Read ads or reviews about chosen brand Some companies use follow up calls from salespeople to try to assure buyers they made right decision |
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What are the components of the hierarchy of effects (AIDA) model of consumer purchase decision making?
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Awareness
Interest Desire Action |
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What is involvement and what are the factors that affect involvement level?
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involvement consists of the personal, social, and economic significance of the purchase to the consumer.
brands examined sellers considered attributes evaluated information sources used time searching all increase involvement |
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What is routine, limited and extensive problem solving?
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routine: brands-one, sellers-few, attributes evaluated-one, info sources- none, time searching-minimal
limited: brands-several, sellers-several, attributes- moderate, sources-few, time-little extended: brands-many, sellers-many, attributes-many, sources-many, time-considerable |
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What is Maslow’s hierarchy of needs? What is its relevance to marketing?
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physiological, safety, social, esteem, self-actualization
relevance: types of purchases for customers and advertising methods and messages used to appeal to customers. |
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How does self-concept impact marketing?
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Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
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What are selective exposure, selective comprehension, and selective retention?
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Selective Exposure-Notices certain stimuli and ignores others
Selective Comprehension-Consumer distorts information that conflicts with feelings / beliefs Selective Retention-Consumer remembers only information that supports personal beliefs |
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What is perceived risk and how do firms address it?
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a
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How does learning have an impact on marketing?
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learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.
learning determines what response is brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. |
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What is culture? What are customs?
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a
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What are reference groups and what affect do they have on consumer behavior?
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Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
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What are beliefs and attitudes and their importance to marketing? How can marketing change attitudes?
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An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”
attitude change-change belief about brand attributes |
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What does VALS stand for?
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values and lifestyles
Lifestyle is a 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. |
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How do opinion leaders and word-of-mouth influence our decision processes?
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opinion leaders are individuals who exert direct or indirect social influence over others.
word of mouth is the influencing of people during conversations |
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What are the types of reference groups of consumers and why is it important for marketing to be aware of them?
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reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
membership aspirational dissociative |
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How does the family impact consumer behavior?
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The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.
Family Influence: info gatherer, influencer, decision maker, purchaser, user |
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What is the family life cycle? What roles do family members play in purchase decision processes?
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The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors
same as other |
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What are some of the situational influences on purchase decisions?
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swot analysis, scanning the environment, understanding the customer, market research
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How does business marketing differ from consumer marketing?
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Business marketing is the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
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What are the major categories of organizational buyers?
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Organizational Buyers
Industrial Markets (Industrial Firms) Reseller Markets (Resellers Government Markets (Government Units) Industrial firms are organizational buyers that in some way reprocesses a product or service they buy before selling it again to the next buyer Resellers are wholesalers and retailers that buy physical products and resell them again without any processing. Government units are the federal, state, and local agencies that buy goods and services for the constituents they serve. |
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What is NAICS? How is it useful for marketers?
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North American Industry Classification System (NAICS)
The NAICS provides common industry definitions for Canada, Mexico, and the United States, which makes easier the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA). |
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What is derived demand?
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derived demand means the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.
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What are the steps in organizational buying?
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stage 1- problem recognition:make-buy decision
stage 2- information search:value analysis stage 3-alternative evaluation: bidder's list stage 4-purchase decision stage 5-postpurchase behavior |
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What is the make-buy decision?
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a make-buy decision problem is an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.
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What is a bidder’s list?
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A bidder's list is a list of firms believed to be qualified to supply a given item.
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What is a buying center?
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A buying center is the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.
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What are the roles in the buying center?
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initiator, user, gatekeeper, influencer
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What are the some of the important evaluative criteria in business marketing?
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Business marketing is the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.
stage 1: make-buy dec stage 2: value analysis stage 3: bidder's list stage 4:purchase dec stage 5: postpurchase behavior |
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What is the difference between a new buy, a modified rebuy, and a straight rebuy?
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buying classes consist of three types of buying situations: straight rebuy; modified rebuy; and new buy.
new buy: ppl involved-many, decision time-long, prob def-uncertain, buying obj-good sol, suppliers considered-new/present, buying influence-tech/operating personal straight rebuy: ppl involved-one, dec time-long, prob def-well defined, buying obj-low priced supplier, suppliers considered-present, buying influence-purchasing agent modified rebuy: ppl involved-two or three, dec time-moderate, problem def-minor mod, buying obj-low priced supp, suppliers considered-present, buying influence-purchasing agent and others |
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What are some of the characteristics of e-marketplaces?
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E-marketplaces are online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.
An traditional auction is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other. |
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What is marketing research and for what purposes is it undertaken?
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Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
DEMAND FORECASTING SEGMENTATION MARKET TRACKING NEW PRODUCT TESTING AD PRETESTING Goal of Marketing Research: to identify problems and opportunities and to generate and improve marketing actions. Seeks to reduce risk and uncertainty and improve decisions made by marketing managers |
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What are the steps of a marketing research project?
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step 1: define the problem-set research obj, identify possible marketing actions
step 2: develop the research plan-identify data needed for marketing actions, determine how to collect data step 3: collect relevant information-secondary data, primary data step 4: deliver the final report-analyze data, present findings, make recommendations |
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Why is defining the problem such an important step?
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Objectives – measurable goals the decision
maker seeks to achieve in solving a problem |
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What are the three kinds of research?
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exploritory – provides ideas about a
relatively vague problem descriptive– trying to find the frequency that something occurs with or extent of a relationship between two factors casual - tries to determine the extent to which the change in one factor changes another one |
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When is it more appropriate to use exploratory, descriptive and causal research?
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a
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What are concepts and methods?
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concepts: new product concept, advertising concept
Concepts are ideas about products or services, whereas methods are the approaches that can be used to collect data methods: sampling, statistical influence |
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What is the difference between probability and non-probability sampling? What are the pros and cons of each?
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Probability sampling involves using precise rules to select the sample such that each element of the population has a specific known chance of being selected.
Example: What do LeBow students think of new curriculum? - Randomly draw 25 of the 500 new undergrads at LeBow - Each student has an equal chance of being selected - Chance is known = 25/500 = .05 Nonprobability sampling involves using arbitrary judgments to select the sample so that the chance of selecting a particular element may be unknown. Example: What do LeBow students think of new curriculum? - Choose 25 LeBow students from this class - Excludes part of pop. (students not taking this class) |
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What is secondary and primary data? What are the ways in which each can be collected? What are the pros and cons of each?
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secondary data: facts and figures already recorded prior to the project
internal: financial statements, research, reports files, cust letters, sales calls, cust lists external: us census reports, trade ass, periodicals, int reports primary data: facts and figures newly collected for the project: meter, ethno, mystery shopper observational data: mechanical and electronic approaches, personal approaches questionnaire data: idea generation through depth interviews and focus groups, idea eval by mail, online, tele, personal survys |
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What is the difference between qualitative and quantitative research? What are the pros and cons of each?
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Individual Interviews & Focus Groups
qualitative |
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Describe the different types of surveys/questionnaires.
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(mail internet and fax)
cost per completed survey-least exp ability to ask complex quest-little opp for interviewer to bias-none anonymity-complete (telephone) cost per completed survey-moderat ability to ask complex quest-some opp for interviewer to bias-some anonymity-some (personal and mall intercept surveys) cost per completed survey-most ability to ask complex quest-much opp for interviewer to bias-significant anonymity-little |
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What are open-ended, and closed-ended questions? What is a Likert scale?
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open-ended- question with no choices leaves blank for survey taker
closed-end-gives survey taker choices or simple yes/no likert- a choice of gradual choices moving from two extremes |
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What is experimental research?
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primary data-panels and groups
groups of ppl are similar except for the variable |
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What is a confidence interval? How is it linked to accuracy and how can it be improved?
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helps determine the accuracy of a statistical estimate from a random sample
consists of a range on either side of the estimate indicates the likelihood that the range contains the true value for the entire population |
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What are sales forecasting techniques?
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judgements of the decision maker
surveys of knowledgeable groups: surveys of buyers' intent forecast salesforce survey forecast statistical methods: trend extrapolation linear trend extrapolation |
