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59 Cards in this Set
- Front
- Back
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What is Discretionary Income?
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What is left of income after paying taxes and paying taxes and necessities. It is elusive because "necessities" change depending on the family.
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How much of the total income does the top 20% make?
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About 50%
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What are economic buyers?
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People who know all the facts and logically compare choices in terms of cost and value received to get the greatest satisfaction from spending their time and money.
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What are economic needs?
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Concerned with making the best use of a consumer's time and money and the consumer judges it.
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What psychological factors affect a person's buying behavior?
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Motivation, Perception, Learning, Attitude, and Personality/lifestyle.
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What social influences affect a person's buying behavior?
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Family, Social Class, Reference groups, Culture
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How does the purchase situation affect a person's buying behavior?
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Purchase reason, time and surroundings.
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What do the psychological variables, social influences and purchase situation all add up to?
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The problem-solving process
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What are needs?
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The basic forces that motivate a person to do something. Some involve a physical will, and some are from the self-view and relationship with others.
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What are "wants"?
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They are "needs: that are learned during a person's life.
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What is a drive?
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Is a strong stimulus that encourages action to reduce a need. The reasons behind certain behavioral patterns.
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What are psychological needs?
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Concerned with biological needs-food, drink, rest and sex.
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What are safety needs?
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Concerned with protection and physical well-being (health, food, medicine, exercise etc.)
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What are personal needs?
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An individual's needs for personal satisfaction-unrelated to what others think or do.
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Perception determines what consumers see and feel. What is selective exposure?
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Our eyes and minds seek out and notice only information that interests us.
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What is selective perception?
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We screen out or modify ideas, messages, and information that conflict with perviously learned attitudes and beliefs.
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What is selective retention?
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We remember only what we want to remember.
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Learning determines what response is likely. What is learning?
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A change in a person's thought processes caused by prior experiences. Often direct experiences.
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What is learning reinforcement?
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Reinforcement of the learning process occurs when the response is followed by satisfaction--reduction in the drive.
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What is an attitude?
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A person's point of view toward something.
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What is a belief?
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A person's opinion about something.
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What is an expectation?
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An outcome or events that a person anticipates or looks forward to. Consumers may evaluate a product of how it performs relative to their expectations.
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What are Psychographics or a Lifestyle analysis?
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The analysis of a person's day to day pattern of living as expressed in their activities, interests, and opinions--sometimes referred to as AIOs.
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What is a reference group?
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The people to whom an individual looks when forming attitudes about a particular topic.
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What is an opinion leader?
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A person who influences others.
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Culture surround the other influences. What is culture?
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The whole set of beliefs, attitudes, and ways of doing things of a reasonably group of homogenous people.
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What is the five-step problem solving process that most consumers use when purchasing?
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1. Becoming aware of, or interested in, the problem.
2. Recalling and gathering information about possible solutions. 3. Evaluating alternative solutions -perhaps trying some out. 4. Deciding on the appropriate solution. 5. Evaluating the Decision |
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What is extensive problem solving?
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Consumers use it for a completely new or important need--when the put much effort into deciding how to satisfy their need.
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What is limited problem solving?
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Consumers use it when they are willing to put some effort into deciding the best way to satisfy a need.
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What is routinized response behavior?
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When consumers regularly select a particular way of satisfying a need when it occurs.
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What is the adoption process?
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The steps individuals go through on the way to accepting or rejecting a new idea.
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What are the steps in the adoption process?
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1. Awareness--the potential customer comes to know about the producer but lacks details. May not know how it works or what it does.
2. Interest-- If the consumer becomes interested they will gather general information and facts about the product. 3. Evaluation--A consumer begins to give the product a mental trial, applying it to his or her personal situation. 4. Trial--the consumer may buy the product to experiment with it. A product that is either too expensive or isn't available for trial may never be adopted. 5. Decision-- the consumer deiceds on either adoptin or rejection. Reinforcement leads to adoption. 6. Confirmation-- the adopter continues to rethink the decision and searches to support for the decision-that is further reinforcement. |
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What does PSSP stand for?
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Physiological needs, safety needs, social needs, and personal needs.
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What is the Reallocation of teenagers?
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Once children become teenagers, further shits in spending occur. They eat more, want to wear expensive clothes, and develop recreation and educational needs.
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What are some simple ways for measuring social class in the U.S,?
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Occupation, type of housing, location of housing and education. Income is not the main determinant!
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What are Usury laws?
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Lending money at unreasonably high interest rates.
Interest rates are regulated by state usury laws Fewer than half the states cap credit card interest rates Most credit card companies are located in states with liberal or no interest-rate caps |
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What are some keys to success in global marketing?
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Partner, relationships, product and price adjustments
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What is the IMF, WTO and GATT?
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International Monetary fund, the World Trade Organization and the General Agreement on Trade and Tariffs.
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What are some factors in assessing global markets?
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Infrastructure and Technology, government actions, socio-cultural analysis, and an economic analysis.
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What factors are apart of an economic analysis?
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General economic environment, real income and population growth/market size.
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What are some tools used to evaluate the general economic environment of a country?
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Trade deficit vs. trade surplus. GDP and GNI (Gross National Income).
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What are some tools used to analyze infrastructure and technological capabilities?
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Transportation, communication, distribution channel and commerce.
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What are some tools used to analyze government actions of a country?
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Tariff, quota, boycott, exchange control and trade agreement.
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What are Tariffs and Quotas?
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Tariff: Tax, Artificially raises prices, and lowers demand.
Quota: maximum limit, reduces availability of foreign goods. BOTH benefit domestic products because the reduce foreign competition. |
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What is a trading bloc?
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Consists of those countries that have signed a particular trade agreement.
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What are some ways to analyze sociocultural factors?
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Power distance, uncertainty avoidance, individuality, masculinity and time orientation.
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List the global entry strategies from least risk to highest risk?
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export, franchising, strategic alliance, joint venture, and direct investment.
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What are some factors the affect global pricing strategies?
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Tariffs, quotas, anti-dumping policies, economic conditions, and competitive factors.
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In a global distrubution strategy why is is it important to shorten distribution channels whenever possible?
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To reduce control of supply chain.
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What is trade deficit and trade surplus?
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Trade deficit: Occurs when a country imports more goods than it exports.
Trade surplus: Occurs when a country exports more goods than it imports. |
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What is the GDP and GNI?
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Gross Domestic Product (GDP): The market value of the goods and services produced by a country in a year.
Gross National Income (GNI): GDP plus the net income earned from investments abroad. |
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What is direct investment?
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: Exit strategy that requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries.
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What is exporting?
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Exporting: Producing goods in one country and selling them in another.
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What is franchising?
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A contractual agreement between a firm, the franchisor, and another firm or individual, the franchisee.
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What is a joint venture?
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Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.
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What is a strategic alliance?
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Strategic alliance: Collaborative relationship between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another.
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What are some of the ethnic influences in marketing in the US?
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increasing median incomes, buy differently, high population growth rate, avoid stereotypes.
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What is the fastest growing industry in marketing?
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Service Industry--80% of U.S.
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What are revolving and non-revolving as credit card terms?
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o Credit cards—non-revolving ( fixed balance and fixed interest rate) and revolving ( open ended with irregular balances that can change monthly, variable interest rate. )
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