Marketing 2020 Ohio University Exam 2

The Consumer Decision Process
Need Recognition, Information Search, Alternative Evaluation, Purchase, Post Purchase.
The consumer decision process: Need Recognition
Functional needs, Psychological needs.
Factors Affecting Consumers’ Search Process
Perceived Benefits, Perceived Costs.
Internal Locus of Control
more search activities
External Locus of Control
Fate, external factors
Actual or perceived risk
Psychological, Performance, Financial, Physiological, Social risk.
Evaluation of Alternatives
Universal, Retrieval, Evoked
Post-purchase
Customer Satisfaction, Undesirable Consumer Behavior, Customer Loyalty, Dissonance.
Factors influencing the consumer decision process
Marketing mix, Psychological factors, Social factors, Situational factors.
High involvement vs. Low involvement
High: Greater attention, deeper processing, strong attitudes.

Low: Less attention, Peripheral processing.

Attitude
Person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea.
Determinant attributes
Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.
evoked set
Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.
Universal sets
All possible choices for a product category.
B2B Markets
Resellers, Manufacturers/Service providers, Government, Institutions.
Resellers
Manufacturer -> Reseller -> Retailer.
Institutions
Schools, Museums, Religious Organizations.
B2B Buying Process
1. Need Recognition – Can be generalized internally/externally.

2. Product Specification -Used by suppliers to develop proposals.

3. RFP (Request for proposal) Process

4.Proposal Analysis and supplier selection – often several vendors are negotiating against each other.

5. Order specification – All terms are detailed.

6. Vendor/performance assessment using metrics.

The buying center
Influencer, initiator, decider, gatekeeper, user, buyer.
Organizational “Buying” Culture
Democratic, Autocratic, Consultive, Consensus.
Buying situations
New buy, modified rebuy, straight rebuy.
Request for proposals (RFP)
Process through which buying organizations invite alternative suppliers to bid on supplying their required components.
Economic Analysis
GDP (Gross domestic product), Gross national income, Purchasing power parity, Human development index.
Infrastructure and technological capabilities
Transportation, Communication, Distribution Channel, Commerce.
Government Actions
Tariff, Trade Agreement, Quota, Exchange control.
BRIC Countries
Great potential for growth in the global community.

Brazil, Russia, India, China.

Global Entry Strategies
Export, Franchising, Strategic Alliance, Joint Venture, Direct investment.
Culture: Sociocultural factors
Power distance, Uncertainty avoidance, Individualism, Masculinity, Time orientation, Indulgence.
Price
Tariffs, Quotas, Anti-dumping policies, economic conditions, competitive factors.
Cultural Imperialism
One’s own culture is superior to that of other nations.
Quota
Designates the maximum quantity of a product that may be brought into a country during a specified time period.
Tariff
A tax levied on a good imported into a country.
STP Process: Step 1
Establish overall strategy or objectives. Check yourself.
STP Process: Step 2
Segmentation Methods. Geographic, Demographic, Psychographic, Benefits, Behavioral.
STP Process: Step 3
Evaluate Segment Attractiveness. Substantial (Too small or too big), Identifiable, Reachable (Know the product exists, recognize how to buy), Profitable, Responsive.
STP Process: Step 4
Selecting a Target Market. Ex. Conde Nast has more than 20 niche magazines focused on different aspects of life.
STP Process: Step 5
Positioning Methods. Value, Salient Attributes, Symbol, Competition.
Psychographics
Allows people to describe themselves using characteristics that help them choose how they occupy their time, and what psychological reason determines these choices.
Value and Lifestyle Survey (VALS)
A psychographic tool that classifies consumers into eight categories based on their answers to a questionnaire.
Marketing Research Process
Defining objectives and research needs > Designing the research (Type of data/research) > Collecting the data (Primary or Secondary?) > Analyzing data and developing insights > Developing and implementing an action plan.
External Secondary Data
Syndicated Data, Panel Research, Scanner Research.
Internal Secondary Data
Data Warehouse, Data Mining.
Panel Research
Type of quantitative research that involves collecting information from a group of consumers (the panel) over time.
Scanner research
A type of quantitative research that uses data obtained from scanner readings of UPC codes at check-out counters.
Syndicated data
Data available for a fee from commercial research firms such as Information Resources Inc., Nielsen, etc.
How do we determine customer satisfaction vs dissatisfaction?
Expectations vs. Experience. If experience met expectations, we are satisfied.
Limited problem solving?
You spend more time in habitual because there is less risk involved.
Elements of a stores atmosphere?
Music, crowd, etc.
Two factors involved in info search
Perceived benefits vs Perceived cost.
ABCs of attitudes
Affect, behavior, cognition.
What are the levels of Maslow’s hierarchy of needs?
Physiological, safety, esteem, socialization.
Three types of perceived risk?
Performance, financial, social.
RFP?
Request for proposal.
Product specifications?
Color, size, quality, etc.
Four types of organizational cultures?
Democratic, Autocratic, Consultive, Consensus.
One component of global market assessment?
Infrastructure or Technology.
Why do countries create tariffs and quotas?
To protect the companies from their home countries.
GDP
Market value of goods and services produced in a year in a country.
Two of hausteeds cultural dimensions?
Poverty and avoidance.
Least risk in foreign markets?
Exports.
What is franchising?
Allowing company of adopting your entire way of doing business.
Strategic Alliance
When companies collaborate but don’t invest in each other.
Three product strategies when going global?
Product adaptation, straight extension, product invention.
Geodemographic segmentation?
People who are similar demographically tend to live close to each other.
Data Mining
Storing data and trying to find patterns in it.
Observational research
Watching customers and seeing how they react.