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48 Cards in this Set

  • Front
  • Back
What is Primary Data?
-Information or statistics originated by the researcher for the purpose of the investigation at hand
What are the 2 limitations on secondary data?
What is Secondary Data?
-Information or statistics not gathered for the immediate study at hand
What are examples of Secondary Data?
Books, Company Files, Trade Associations, Periodicals
What are the 3 sources of Secondary Data?
-Nonlibrary sources
-The Internet
What is Fit?
since data were originally collected for another project or purpose, data may or may not suit current needs
What is Accuracy?
varies depending on the expertise of the organization that originally collected the data
What are problems with Primary Data?
May be costly and time consuming
What are the 6 ways to gather primary data?
-Observation of consumers
-Consumer surveys
-Focus groups
-Test markets
-Consumer panels
What are the 2 types of experiments used?
-Lab Experiments
-Field Experiments
What is the difference between natural and contrived observation?
Natural is an actual setting

Contrived is an artificial setting
What is the difference between disguised and undisguised observation?
Disguised the subject is unaware

Undisguised the subject is aware
What are some issues with test markets?
-Number and characteristics of test markets to use
-Duration of the test
-Competitors’ reaction to the test
-Cost of test marketing
Where are test markets usually used in?
medium-size cities in order to gauge its sales or profit potential
What are the 2 types of panels?
-True panels
-Omnibus panels
What is a true panel?
-members provide repeated measurements of the same variable or behavior over time (e.g., TV viewership habits)
What is an Omnibus panel?
-members provide their views or evaluations on a one-time basis of new products, services, or ads
What are some ethical issues in consumer research?
-Protecting participants
-Avoiding deception
-Informing participants
-Honoring promises of confidentiality
Why segment a market?
-To promote customer satisfaction
-To promote efficient use of resources
-To promote effective competition
What is Undifferentiated Marketing?
-a market coverage strategy whereby differences within a market are ignored.

--Everyone is assumed the same.
--The company attempts to appeal to the whole market with a single product (line) or service (line) and marketing strategy.
What is Segmentation?
Act of dissecting the marketplace into submarkets that require different marketing mixes
What variables are used to segment consumer markets?
What is Geodemographic Segmentation?
Partitions the market by considering data on small units of geography, such as neighborhoods, zip codes, or census tracts
What is PRIZM and how is it used?
-PRIZM reveals to clients, such as BMW and AOL, who their customers are and where they reside by zip code, census tracts, and city blocks.

-It provides consumption indices (potential) for a variety of product categories in various market regions.
How is Undifferentiated Strategy viewed?
The market is viewed as a single large homogeneous domain where a single marketing mix suffices.
What is Concentration Strategy?
Focusing marketing effort on a single segment.
What is Customization Strategy?
Personalizing marketing effort to suit individual customers’ needs.
What is Multi-Segment Strategy?
The market is viewed as two or more segments requiring different marketing mixes.
What is Perceptual mapping?
a graphics technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.
What are some categories of psychographic factors used in market segmentation?
-Activity, Interest, Opinion (AIO)
How did shifting roles of men and women influence consumer behavior?
-Changes are brought about by women’s educational attainments, professional positions, mobility, and independence

-A redefinition of buying decision centers within the family
-Products traditionally targeted to women are being targeted to men, and vice versa
How did diversity influence consumer behavior?
Policies of racial and ethnic inclusion characterize our society

-An effort by firms to accommodate the values and beliefs of a diverse workforce
-Products and promotional appeals are adjusted in response to the demands of diversity
How did focus in Health, fitness and beauty influence consumer behavior?
Golden opportunities are created for many products ranging from fat-free foods to vitamins, as well as for services ranging from plastic surgery to hair implants, and from face-lifts to liposuction
How did Growth of the Information Superhighway influence consumer behavior?
-We have reviews now, when before we only could rely on the sales person
-Businesses can locate smaller target markets
-reduce marketing costs
-shop anywhere, anytime
How did personalized economy influence consumer behavior?
-In search of individuality, consumers now expect companies to custom-tailor their products and services

--Many companies aspire to provide custom-designed products marketed to ever-smaller niches of consumers
--Customers are often willing to pay the premium price to acquire such personalized products
How does concern of personal safety influence consumer behavior?
-Public pressure on government to secure borders, inspect imports, revisit immigration laws, and stiffen penalties for criminal behavior
-Public pressure on businesses (e.g., airlines) to adopt protective policies and procedures
-Increase in demand for personal-defense related items
How did the focus on ethics influence consumer behavior?
-Public outrage highlights the need to adapt higher standards of ethical behavior for both business and government
-The number of advocate groups that act as watchdogs for fraudulent and deceptive business practices has risen
-Both government and business have tightened up regulations to ensure the adoption of fair business practices
How did telecommuting influence consumer behavior?
-Rise in demand for state-of-the-art communication technology devices
-Decline in demand for gasoline, cars, auto insurance, car repair, child care, and baby-sitting services
How does the public concern on the environment influence consumer behavior?
-A positive shift in public attitudes toward the environment
-Firms race to create and market environmentally-sound products and services
-Major changes in public policy aim to protect the fragile environment
-An emerging global awareness and concern for environmental issues
How did the Rise of the Global Village influence consumer behavior?
Businesses today operate in an interdependent global environment

-An increasing acceptance of the free market system in many foreign countries
-Growth of major regional free-trade areas such as NAFTA and the EU
-An increasing commonality of needs among consumers in different countries
What is the difference between a rational decision and a nonrational decision?
Rational is buying what you usually do and nonrational is the opposite of what you usually do
What disciplines contribute to consumer behavior?
-Social psychology
What is the customer lifecycle?
The customer lifecycle entails the creation and delivery by the firm of lifetime value to consumers during every stage of the relationship
What is the marketing concept?
1. A consumer orientation
2. Achievement of organizational goals
3. Integration of all marketing activities
4. A real sensitivity to changes in society
What is A consumer orientation?
Chief goal is consumer satisfaction. This is the basic guideline.
What is achievement of organizational goals?
Survival through profit and not sales volume. Profit is the reward of delivering customer value.
What is integration of all marketing activities?
Integration of all marketing activities to work together in a single operating system. Develop distinctive competencies
What is a real sensitivity to changes in society?
A future orientation. Product innovation.