Chapter 5: Principles of Marketing

Consumer Behavior
The way in which individuals and organizations make decisions to spend their available resources such as time and money.
Business-to-Consumer Marketing (B2C)
Selling goods and services to end-user customers.
Problem Recognition
The stage of the buying process in which consumers recognize they have a need to satisfy.
External Information Search
When consumers seek information beyond their personal knowledge and experience to support them in their buying decision.
Internal Information Search
When consumers use their past experiences with items from the same brand or product class as sources of information.
Ritual Consumption
Patterns of consumption that are repeated with regularity.
Evaluative Criteria
The attributes a consumer considers important about a certain product.
Cognitive Dissonance
The mental conflict that people undergo when they acquire new information that contradicts their beliefs or assumptions.
Situational Influences
Factors like time and social surroundings that serve as an interface between the consumers and their decision making process.
Family Life Cycle
The distinct family-related phases that an individual progresses through over the course of his or her life.
Reference Group
A collection of people to whom a consumer compares himself or herself.
Membership Reference Group
The group to which a consumer actually belongs.
Aspirational Reference Group
The individuals a consume would like to emulate.
Dissociative Reference Groups
The people that the individual would not like to be like.
Opinion Leaders
Individuals who exert an unequal amounts of influence on the decisions of others because they are considered knowledgeable about particular products.
Personality
The set of distinctive characteristics that lead an individual to respond in a consistent way to certain situations.
Lifestyle
A person’s typical way of life as expressed by his or her activities, interests and opinions.
Values
A consumers belief that specific behaviors are socially or personally preferable to other behaviors.
Country-Of-Origin Effects
The beliefs and associations people have about a country.
Psychological Processes
The underlying psychological mechanisms that can influence consumer behavior.
Attitude
A persons overall evaluation of an object involving general feelings of likes and dislikes.
Learning
The modification of behavior that occurs over time due to experiences and other external stimuli.
Motivation
The inward drive we have to get what we want or need.
Esteem
The need all humans have to be respected by others as well as by themselves.
Self-Actualization
A consumers full potential and the need to realize that potential.
Involvement
The personal, financial and social significance of the decision being made.
Impulse buying
Purchasing a product with no planning or forethought.
Low-Involvement Products
Inexpensive products that can be purchased without much forethought and that are products that are purchased frequently.
High-Involvement Products
Significant purchases that carry a greater risk to consumers if they fail.
Business-to-Business Marketing (B2B)
Marketing to organizations that acquire goods and service in the production of other goods and services that are then sold or supplied to others.
Derived Demand
When demand for one product occurs because of the demand of a related product.
North American Industry Classification System (NAICS)
A single industry classification system used by the members of the NAFTA to generate comparable statistics for businesses and industries across the three countries.
Resellers
Retailers and wholesalers who buy finished goods and resell them for a profit.
Retailer
A firm that sells mainly to end-user consumers.
Wholesaling
The sale of goods or merchandise to retailers: industrial, commercial, institutional or other professional business users or wholesalers.
Wholesaler
A firm that sells goods to anyone other than end consumer.
New Buy
A buying situation in which a business customer is purchasing a product for the very first time.
Straight Rebuy
A buying situation in which a business customer signals its satisfaction by agreeing to purchase the same product a the same price.
Modified Rebuy
A buying situation in which the customer needs change slightly or they are not completely satisfied with the product they purchased.