351 Midterm Exam Study Guide

Front 1

Define consumer behavior

Back 1

activities people undertake when obtaining, consuming and disposing of products and services - "Why people buy"...

Front 2

3 Primary activites included in consumer behavior definition are?

Back 2

Obtaining, Consuming and Disposing.

Front 3

Obtaining (definition of consumer behavior)

Back 3

activities leading up to and including the purchase or receipt of a product.

Front 4

Consuming (definition of consumer behavior)

Back 4

How, where, when and under what circumstances consumers use products.

Front 5

Disposing (definition of consumer behavior)

Back 5

How consumers get rid of products and packaging.

Front 6

Consumption Analysis

Back 6

why and how people use products in addition to why and how they buy.

Front 7

Why is consumption analysis different than consumer behavior?

Back 7

because it includes issues that arise after the purchase process occurs - issues that often affect how people buy and the satisfaction they receive from their purchases.

Front 8

Marketing Concept

Back 8

The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

Front 9

Today, the most successful organizations are described as _________ - _______.

Back 9

Customer centric

Front 10

What is customer centricity?

Back 10

Focus on customer satisfaction. Involves a total market approach to product development, innovation, research, logistics, and communication.

Front 11

Marketing is the process of....

Back 11

transforming or changing an organization to have what people will buy. It works best when the organiztion is influenced by the needs and wants of consumers instead of consumers influenced by the desires of marketers.

Front 12

Consumer Behavior Determines the Economic Health of a Nation which means that...

Back 12

consumers are voting on which nations and firms win and they do it with their dollars, euros and yen.

Front 13

Consumer Behavior Determines the success of Marketing Programs which means that...

Back 13

"Consumer is king"

Front 14

"Only ___ ________ Can Fire Us All..."

Back 14

The Customer

Front 15

Relationship marketing

Back 15

How to keep existing customers in the long run by establishing relationships based on mutual cooperation, trust, and commitment to value-added exchanges.

Front 16

Consumer behavior determines the economic Health of Everyone which means...

Back 16

how to make more effective consumption decisions while avoiding deceptive practices harmful to consumers.

Front 17

Consumer Behavior helps formulate public policy which means....

Back 17

understanding the needs of consumers when formulating policies relating to economics, social welfare, family planning, etc. They also need to know how to predict the behavioral changes that will follow their policies. (When the federal Reserve changes interest rates, what is the effect on demand for homes, cars, investments, etc.)

Front 18

Consumer Behavior affects personal policy, which means...

Back 18

A persons economic quality of life is determined by personal policy.

Front 19

Once you truly understand consumer behavior, you will realize that what you have in life is determined more by how much you save (and how little you spend) than

Back 19

how much you earn.

Front 20

What is Motivation Research?

Back 20

To uncover hidden or unrecognized motivations through guided interviewing.

Front 21

Positivism

Back 21

refers to the process of using rigorous empirical techniques to discover generalizable explanations and laws. AKA - if results can't be proven in the lab, the data is not useful and that only information derived from scientific methods should be used in making decisions.

Front 22

The goals of positivism are two fold...

Back 22

1. Understand and predict consumer behavior
2. Discover cause-and-effect relationships that govern persuasion and education. Until recently, most published consumer research embraced the research paradigm of positivism.

Front 23

Post-modernism

Back 23

Is a complementary approach to positivism, which gained popularity in the 1980's and 1990's.

Front 24

How is post-modernism different from positivism?

Back 24

Postmodernism uses qualitative and other research metods to understand consumer behavior.

Front 25

Methods of studying consumer behavior (3)?

Back 25

Observation, Interviews and surveys, experimentation.

Front 26

Observational approach to consumer research consists of

Back 26

observing consumer behaviors in different situations. Usually observed in a lab.

Front 27

In-home observation places marketers...

Back 27

inside peoples homes to examine exactly how products are consumed.

Front 28

Shadowing

Back 28

is a method in which a researcher accompanies or "shadows" consumers through the shopping and consumption process.

Front 29

How is shadowing usually observed?

Back 29

Through video tape or surveilance.

Front 30

Physiological observational methods are...

Back 30

Methods of recording using eye movement, galvanic skin response (GSR) and MRI.

Front 31

______s are an efficient way of gathering information from a large sample of consumers by asking questions and recording responses.

Back 31

Surveys

Front 32

Focus Groups are one of the most common methods used to delve into a variety of consumer and consumption issues. T/F

Back 32

T

Front 33

Focus Groups usually consist of - to -- people involved in a discussion led by a moderator skilled in persuading consumers to discuss thoroughly a topic of interest to the researcher.

Back 33

8 to 12

Front 34

Longitudinal Studies

Back 34

involve repeated measures of consumer activities over time to determine changes in their opinions, buying and consumption behaviors.

Front 35

What are common methods of data collection for longitudinal studies?

Back 35

Membership clubs or customer loyalty programs

Front 36

Experimentation attempts to understand cause and effect relationships by

Back 36

carefully manipulating independent variables to determine how these changes affect dependent variables.

Front 37

Consumption research focuses on how people use their products rather than how they buy them. T/F

Back 37

T

Front 38

"Peter Drucker said it well, "There is one valid definition of business purpose:..."

Back 38

To create a customer

Front 39

Market Segments

Back 39

Marketers must dive deeper in their understanding of consumer behavior to identify groups of people.

Front 40

Intermarket segmentation

Back 40

When consumer analysts focus on similarities within groups of consumers, while recognizing the differences between groups.

Front 41

What is...The process of understanding consumer trends, global consumer markets, models to predict purchase and consumption patterns and communication methods to reach target markets most effectively.

Back 41

Consumer analysis

Front 42

Strategy

Back 42

A decisive allocation of resources (capital, technology and people) in a particular direction.

Front 43

The characteristics of a customer-centric organization are:
(CCSS...CustomeS CentricS)

Back 43

-Shared vision and values
-cross-functional integration
-System-wide simultaneous training
-Customer-based metrics

Front 44

What is Value?

Back 44

The difference between what consumers give up (time, money, and other resources) for a product and the benefits they receive.

Front 45

What is Market Analysis?

Back 45

The process of analyzing, changing consumer trends, current and potential competitors, company strengths and resources, and the technological legal and economic environments

Front 46

Subsections in the Market Analysis section:
1. consumer insight and product dev.
2. Consumer environment

Back 46

1-Consumer insight and product development:
=understanding of consumers expressed and unspoken needs and realities that effect how they make life, brand, and product choices

2-Consumer environment:
=marketers study the CE, they study trends, personal and group influences, consumer's knowledge, attitudes and motivations, the process by which consumers make their purchase and consumption decisions, and changing consumer wants, needs, lifestyles.

Front 47

Corporate Strengths and Resources

Back 47

Corporate marketing strategy is a process of balancing market opportunities with corporate resources and strengths.

Front 48

Current and Potential Competitors

Back 48

Focuses strategic thinking on staying ahead of the competition, which might include looking at existing competitive products and figuring out how to add a feature that might make a product "just a little bit better" in the mind of consumers.

Front 49

Market Environment

Back 49

Look at factors such as state of the economy, government regulations, physical conditions.

Front 50

what is: the process of identifying groups of people who behave in similar ways to each other, but somewhat differently than other groups.

Back 50

Market segmentation

Front 51

What is the opposite of market segmentation?

Back 51

Market aggregation or Mass marketing.

Front 52

Market aggregation or mass marketing occurs when

Back 52

organizations choose to market and sell the same product or service to all consumers.

Front 53

Identifying segments

Back 53

correlation of demographics, psychographics, purchase and consumption behaviors, geographical characteristics, and situational factors are the variables used to define segments of potential ustomers with similar behavior.

Front 54

Mass Customizaton

Back 54

customizing goods or services for individual customers in high volumes and at relatively low costs.

Front 55

The ultimate goal of segmentation is increased...

Back 55

customer satisfaction and profitability.

Front 56

Criteria for Choosing Segments

Back 56

1. Measurability
2. Accessibility
3. Sustaniality (refers to the size of the market)
4. Congruity (refers to how similar members within the segment exhibit behaviors or characteristics that correlate with consumption behavior.

Front 57

Marketing Mix

Back 57

Product
Place
Price
Promotion
Brand

Front 58

a product or product line, store, or service with an identifiable set of benefits, wrapped in a recognizable personality is a......

Back 58

brand

Front 59

What are the functional elements of a brand?

Back 59

performance
quality
price
reliability
logistics

Front 60

Emotional elements of a brand are..

Back 60

image, personality, style and evoked feelings.

Front 61

Brand promise

Back 61

describing what consumers can expect in exchange for their money

Front 62

Brand Equity

Back 62

the difference in value created by a brand less the cost of creating the brand

Front 63

Brand personality

Back 63

the reflection consumers see of themselves or think they will develop by using a brand.

Front 64

Brand Protection

Back 64

By promising a certain outcome, brands reduce the risk to consumers that product or service may not deliver as expected.

Front 65

7 R's of the Marketing Mix

Back 65

Research
Rate
Resources
Retailing
Reliability
Reward
Relationship

Front 66

Implementation

Back 66

ho hum

Front 67

Consumer Decision Process (CDP) Model

Back 67

a roadmap of consumers' minds that marketers and managers can use to help guide product mix, communication, and sales strategies

Front 68

How Consumers make decisions for goods and services

Back 68

Need recognition
Search for Information
Pre-purchace evaluation of alternatives
Purchase
Consumption
Post-consumption evaluation
Divestment

Front 69

Need recognition

Back 69

occurs when an individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs.

Front 70

Information Processing

Back 70

Exposure
Attention
Comprehension
Acceptance
Retention

Front 71

Factors influencing the Extent of Problem Solving

Back 71

1. Degree of involvement
2. Degree of differentiation between alternatives and
3. amount of time for deliberation

Front 72

Why is it important to understand need recognition?

"you NEED to RECOGnize so you can get those sales opportunities!"

Back 72

It may reveal a market segment with unsatisfied desires thereby providing businesses with new sales opportunities

Front 73

How does one influence need recognition?
(I.E. change their desired state,etc)

Back 73

-Offer them something to die for
-Improve products and innovations
-alter consumer's perception about their actual state

Front 74

What is spyware?

Back 74

-software that is downloaded onto a computer without the permission of the owner
-collects personal info like the user's online activities, financial records, and passwords

Front 75

What is the difference between generic and selective need recognition?

Generic Milk
Jonno selectively NEED(s) apple!!

Back 75

generic= when the need for an entire product category is stimulated
(milk= most milk tastes the exact same it doesn't have to be a specific brand)

selective need=occurs when the need for a specific brand for a product is stimulated
(APPLE)

Front 76

What is a consideration set?

AKA "the evoked set"

Back 76

-your list of candidates
(wendys, mcdonalds, taco bell... Outback is not being considered)

Front 77

What is a retrieval set?

Back 77

It's using a list of restaurants that you've already had experience with to choose from instead of opening a phone book and randomly choosing one, you go to one you are choosing from your MEMORY ("choice of alternatives from memory")

Front 78

What is a compromise effect and what is an attraction effect?

(Half off tacos for that night only)

Back 78

-compromise effect: when an added alternative causes a pre-exisiting option to become more attractive because it now represents a compromise choice among the set of alternatives
(narrowed it down to fast food, but taco bell is offering half off their tacos and other places you'll pay full)

Attraction Effect: When the attractiveness of a given alternative and its odds of being chosen are enhanced by adding a clearly inferior alternative to the set of the considered
(think of Alex- he offered you an '89 sentra so it made the malibu look much better but compared to honda it still sucks)

Front 79

What are "consumer logistics?"

Back 79

the speed and ease with which the consumer moves through the shopping process
-a new missionary has never gone shopping for himself before and it takes 20 minutes cuz he doesn't know the meat is at the back of the store... experienced shoppers know where to go

Front 80

**What are "discretionary time" and "nondiscretionary time"?

Back 80

Discretionary time: time during which consumers are not constrained by economic, legal, moral, or physical compulsion or obligation.

Nondiscretionary time:time that is constrained by physical, social, and moral obligations
-woman shopping at store but has to leave to pick up kids from school

Front 81

What are "polychromic time" and "monochromic time"?

poly=many chromic= order
-getting LOTS of crap done at the same time

Back 81

Polychromic time= The simultaneous combining of activities to accomplish several goals at the same time
-Business meeting but discuss sales and team bonding during the meeting to bring team together

Monochromic time=the performance of only one activity at a time for the purpose of accomplishing one goal at a time

Front 82

How do polychromic time and monochromic time relate to the consumption of products?

Walmart.

Back 82

-you WANt to have a store that has lots of products and diversity so the consumers are attracted so they'll be more likely to go to that store
- get shoes, groceries, look at glasses at same time instead of just going to ONE store to buy a pair of shoes and a different one etc etc blahhh

Front 83

What are "time prices?"

Back 83

-using the saving of TIME as a marketing technique
"two in one shampoo and condtioner" or "two in one paint plus primer"