Mar3503 - Consumer Behavior - Test 1

Front 1

What is Primary Data?

Back 1

-Information or statistics originated by the researcher for the purpose of the investigation at hand

Front 2

What are the 2 limitations on secondary data?

Back 2

-Fit
-Accuracy

Front 3

What is Secondary Data?

Back 3

-Information or statistics not gathered for the immediate study at hand

Front 4

What are examples of Secondary Data?

Back 4

Books, Company Files, Trade Associations, Periodicals

Front 5

What are the 3 sources of Secondary Data?

Back 5

-Libraries
-Nonlibrary sources
-The Internet

Front 6

What is Fit?

Back 6

since data were originally collected for another project or purpose, data may or may not suit current needs

Front 7

What is Accuracy?

Back 7

varies depending on the expertise of the organization that originally collected the data

Front 8

What are problems with Primary Data?

Back 8

May be costly and time consuming

Front 9

What are the 6 ways to gather primary data?

Back 9

-Observation of consumers
-Consumer surveys
-Focus groups
-Experiments
-Test markets
-Consumer panels

Front 10

What are the 2 types of experiments used?

Back 10

-Lab Experiments
-Field Experiments

Front 11

What is the difference between natural and contrived observation?

Back 11

Natural is an actual setting

Contrived is an artificial setting

Front 12

What is the difference between disguised and undisguised observation?

Back 12

Disguised the subject is unaware

Undisguised the subject is aware

Front 13

What are some issues with test markets?

Back 13

-Number and characteristics of test markets to use
-Duration of the test
-Competitors’ reaction to the test
-Cost of test marketing

Front 14

Where are test markets usually used in?

Back 14

medium-size cities in order to gauge its sales or profit potential

Front 15

What are the 2 types of panels?

Back 15

-True panels
-Omnibus panels

Front 16

What is a true panel?

Back 16

-members provide repeated measurements of the same variable or behavior over time (e.g., TV viewership habits)

Front 17

What is an Omnibus panel?

Back 17

-members provide their views or evaluations on a one-time basis of new products, services, or ads

Front 18

What are some ethical issues in consumer research?

Back 18

-Protecting participants
-Avoiding deception
-Informing participants
-Honoring promises of confidentiality

Front 19

Why segment a market?

Back 19

-To promote customer satisfaction
-To promote efficient use of resources
-To promote effective competition

Front 20

What is Undifferentiated Marketing?

Back 20

-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.

Front 21

What is Segmentation?

Back 21

Act of dissecting the marketplace into submarkets that require different marketing mixes

Front 22

What variables are used to segment consumer markets?

Back 22

-Geographic
-Demographic
-Geodemographic
-Psychographic
-Behavioral

Front 23

What is Geodemographic Segmentation?

Back 23

Partitions the market by considering data on small units of geography, such as neighborhoods, zip codes, or census tracts

Front 24

What is PRIZM and how is it used?

Back 24

-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.

Front 25

How is Undifferentiated Strategy viewed?

Back 25

The market is viewed as a single large homogeneous domain where a single marketing mix suffices.

Front 26

What is Concentration Strategy?

Back 26

Focusing marketing effort on a single segment.

Front 27

What is Customization Strategy?

Back 27

Personalizing marketing effort to suit individual customers’ needs.

Front 28

What is Multi-Segment Strategy?

Back 28

The market is viewed as two or more segments requiring different marketing mixes.

Front 29

What is Perceptual mapping?

Back 29

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.

Front 30

What are some categories of psychographic factors used in market segmentation?

Back 30

-Activity, Interest, Opinion (AIO)
-Attitudes
-Values

Front 31

How did shifting roles of men and women influence consumer behavior?

Back 31

-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

Front 32

How did diversity influence consumer behavior?

Back 32

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

Front 33

How did focus in Health, fitness and beauty influence consumer behavior?

Back 33

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

Front 34

How did Growth of the Information Superhighway influence consumer behavior?

Back 34

-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

Front 35

How did personalized economy influence consumer behavior?

Back 35

-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

Front 36

How does concern of personal safety influence consumer behavior?

Back 36

-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

Front 37

How did the focus on ethics influence consumer behavior?

Back 37

-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

Front 38

How did telecommuting influence consumer behavior?

Back 38

-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

Front 39

How does the public concern on the environment influence consumer behavior?

Back 39

-A positive shift in publicattitudes toward theenvironment
-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

Front 40

How did the Rise of the Global Village influence consumer behavior?

Back 40

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

Front 41

What is the difference between a rational decision and a nonrational decision?

Back 41

Rational is buying what you usually do and nonrational is the opposite of what you usually do

Front 42

What disciplines contribute to consumer behavior?

Back 42

-Psychology
-Social psychology
-Sociology
-Economics
-Anthropology

Front 43

What is the customer lifecycle?

Back 43

The customer lifecycle entails the creation and delivery by the firm of lifetime value to consumers during every stage of the relationship

Front 44

What is the marketing concept?

Back 44

1. A consumer orientation
2. Achievement of organizational goals
3. Integration of all marketing activities
4. A real sensitivity to changes in society

Front 45

What is A consumer orientation?

Back 45

Chief goal is consumer satisfaction. This is the basic guideline.

Front 46

What is achievement of organizational goals?

Back 46

Survival through profit and not sales volume. Profit is the reward of delivering customer value.

Front 47

What is integration of all marketing activities?

Back 47

Integration of all marketing activities to work together in a single operating system. Develop distinctive competencies

Front 48

What is a real sensitivity to changes in society?

Back 48

A future orientation. Product innovation.