Marketing 303, Mike Jones Test 2 (Chloe Davis)

consumer behavior
process a consumer uses to make a purchase, and how they use and dispose of it
why do we study consumer behavior?
in order to develop marketing strategies
What are two marketing strategies?
Target market and marketing mix
Target Market
Who are they, how do they shop, and what influences them
Target market
a particular group of consumers at which a product is aimed
Marketing mix
a combination of factors that can be controlled by a company to influence what consumers by
What uses the four P’s?
the marketing mix
what are the four P’s?
Product
Price
Promotion
Place
Two ideas from the decision making process
psychology
Sociology
psychology
extended or high involvement
routine or limited low Involvement
sociology
group influence on consumers from sociology
Stages in the extended decision making process
Need Recognition
Information Search
Alternative Evaluation
Purchase
Post purchase
need recognition
Imbalance of gap between real and ideal.
Strategy insights- What is the motivation to purchase? Reason? Need?
information search
– Why do people want information before they purchase?
-Strategy Insights: do people seek information before this purchase, and if so, where?
Ads, salesperson, friends, Facebook, family, etc.
-Sources of Information
Internal Search vs. External Search
Active vs. Passive Search
Sources of information
Marketing controlled information sources
Advertising Media Selection
TV, Internet, Billboard, Radio, Mag, Newspaper,…….
Personal Selling
Non Marketer controlled sources
WOM
News Media/Publicity

Promotion Strategy Implications

Alternative Evaluation
What are the Benefits Sought/feature sought vs. competition: Critical to success!
ν Price…can I purchase on a credit card.
ν Quality
ν Features
ν Warrantee
ν Brand
ν Values
ν Social issues.
ν Cool

Product Strategy
Distribution strategy
Price Strategy

Purchase decision
How is is made? By whom…husband or wife or individually.
Where? When? Who makes it? Who influences them? What is needed to facilitate the decision? Incentives? How do I reduce risks for buyer?
post purchase
….the most important for marketers to understand!!

Outcomes OF THIS ARE CRITICAL
– If Satisfied ….what happens here?.
Positive WOM and Consumer comes Back
– If Unsatisfied ….what happens here?
WOM..a powerful negative source of information.
They don’t come back and they don’t tell you…So No Retention of customers
Strategy Implications

Limited or Routine Decision Process: Low involvement
What promotion and distribution decisions are called for here?
Factors effecting decision making
cultural
social
individual
psychological
Cultural factors
culture and subculture
social class
social influences
culture and subculture
value or importance to a culture
social class
becomes target market and reference group
social influences
references group (sneeches)
Primary vs. Secondary
Aspiration vs. Non-aspiration
Opinion Leader
Family
Roles in decisions
Celebrity Endorsers
Q Scores http://www.qscores.com/Web/index.aspx
individual influences
Gender Shopping behavior, colors, shapes,
Age , Family Life Cycle
Psychological Influences
Perception
Selective Processes: Exposure, distortion, retention
Motivation
Maslow’s hierarchy of needs
Maslow’s hierarchy of needs
a method of classifying human needs and motivations into five categories: physiological, safety, social, esteem, and self – actualization
Learning
generalization and discrimination
Beliefs and attitude
Maslow’s hierarchy of needs
. Which of the following strategies is a marketing manager most likely to follow to increase the sales of a high-involvement product?

a.
Creating advertisements that give consumers all the necessary information to make the purchase decision

b.
Focusing on the package design of the product so that it will be eye-catching and easily recognized on the store shelf

c.
Linking the product to a lower-involvement issue to create publicity

d.
Offering coupons, cents-off deals, and two-for-one offers on the product

A
Linda usually does not spend much time selecting gifts while buying them. However, when buying a pen for her husband’s birthday, she visited several stores and spent a lot of time selecting the pen. This scenario is an example of _____.

a.
product involvement

b.
situational involvement

c.
shopping involvement

d.
enduring involvement

B
Which of the following statements is true of the social class system in the United States?

a.
Interest in organized labor is one of the most common attributes among the working class.

b.
The working class spends more on vacation homes, jewelry, vacations and cruises.

c.
The majority of Americans today define themselves as upper class.

d.
Social class includes people belonging to the same age and gender.

A
In the context of the purchase process of a family, _____ are members who suggest or plant the seed for the purchase process.

a.
influencers

b.
purchasers

c.
consumers

d.
initiators

D
_____ is the most complex type of consumer buying decision and is associated with high involvement on the part of the consumer.

a.
Limited decision making

b.
Routine response behavior

c.
Extensive decision making

d.
Postpurchase evaluation

C
29. _____ occurs when consumers change information that conflicts with their feelings or beliefs.

a.

Stimulus generalization

b.

Selective distortion

c.

Cognitive dissonance

d.

Selective retention

B
Joshua prefers to do his grocery shopping at Fresnas Mart because his mother also prefers to shop there. He also does not shop groceries online because his mother does not prefer shopping groceries online. In this case, Joshua’s shopping behavior is a result of _____.

a.
want-got gap

b.
the socialization process

c.
cognitive dissonance

d.
the decision-making process

B
. _____ is an example of routine response behavior.

a.
Booking a cruise vacation

b.
Buying an $800 personal computer

c.
Buying an air conditioner for the first time

d.
Purchasing groceries

D
. In which of the following ways are consumers influenced by reference groups?

a.
Norms of reference groups do not constrain consumer behavior.

b.
Consumers are prohibited from dissociating themselves from reference groups.

c.
Consumers use the same criteria as their reference groups to make their own consumer decisions.

d.
Consumers are influenced only by the reference groups to which they belong.

C
. _____ is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

a.
Loyalty

b.
Culture

c.
Consumerism

d.
Perceived value

B
Which of the following is a psychological factor that impacts consumer buying decisions?

a.
Social class

b.
Learning

c.
Age

d.
Lifestyle

B
Definition and importance of business markets
Organizations which purchase goods and services for needed for operations or resale.
Most of you will work in a B2B situations. These are the best jobs.
Major types of organizations
producers
government
resellers
institutions
CHARACTERISTICS Of ORGANIZATIONAL BUYERS (Differences From Consumer
Demand
Demand
Derived
Price Inelastic
Smaller Number of Buyers – Ray Abner
Larger Volume Purchases …Brandon
Multiple Influence on the Buyer
Professional Buyers (ISM Baton Rouge)
Reciprocity
types of purchases or buying situation
New buy
modify rebuy
straight rebuy
The Buying Center
initiator
gatekeeper
users
deciders
influencers
purchasers
A practice whereby business purchasers choose to buy from customers of their competitors is called reciprocity.

a.
True

b.
False

False
In social media marketing, awareness occurs when action is taken and includes everything from downloading a piece of content (like a white paper) to actually making a purchase.

a.
True

b.
False

False
Derived demand means that an increase or decrease in the price of the product will significantly affect demand for the product.

a.
True

b.
False

False
Providing superior service to a firm’s most valuable customers is likely to result in a maximization of the total business value generated over time.

a.
True

b.
False

True
In a buying center, the decider is the person who actually negotiates a purchase.

a.
True

b.
False

False
Federal, state, and local buying units account for the greatest volume of purchases of any customer category in the United States.

a.
True

b.
False

True
. Items such as forklifts are more commonly sold as consumer goods than as business products.

a.
True

b.
False

False
. A consumer product is also known as an industrial product.

a.
True

b.
False

False
Businesses contract outside providers to perform janitorial, advertising, and legal services as it costs less than hiring an employee to perform the particular task.

a.
True

b.
False

True
Which of the following statements is true of relationship marketing?

a.
For many suppliers, retaining their current customers has become a secondary focus in relationship marketing.

b.
Business suppliers use social networking sites sparingly as these sites discourage businesses from shopping for all their needs.

c.
Loyal customers are less profitable than those who are price sensitive and perceive no difference among brands or suppliers.

d.
Relationship marketing has become more important than before because competition has becoming more intense.

D
IMPORTANCE OF MARKET SEGMENTATION
Allows specification of the target market in developing a strategy?
The more clear on who the customer is, the better the marketing mix fits:
arket Segmentation
PRODUCT Decisions
People’s needs differ, Products can be developed based on particular groups or segments.
PRICING

PROMOTION
Effeciency in communicating to or reaching a segment with media.
PLACE
Putting the product where your customer shops…which stores, online, etc.

BASES FOR SEGMENTATION
Geographic
Demographic
Psychographic
Benefit
Usage rate
MARKET SEGMENTATION STRATEGIES
Undifferentiated (homogeneous)
Concentration
Multisegment
PRODUCT POSITIONING
Positioning strategy
Perceptual Positioning Map
value
a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
perceived value
the value a consumer experts to obtain from a purchase
utilitarian value
a value derived from a product or service that helps the consumers solve problems and accomplish task
hedonic value
a value that acts as an end in itself rather than as a means to an end
Want
recognition of an unfulfilled need and a product that will satisfy it
stimulus
any unit of input affecting one or more of the five senses
internal informational search
the process of recalling the past information stored in the memory
external information search
the process of seeking information in the outside environment
non-marketing information source
a product information source that is associated with advertising or promotion
Marketing – controlled information source
a product information source that originates with marketers promoting the product
evoked set
a group of brands resulting from an information search from which a buyer can choose
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
involvement
the amount of time and effort a buyer invest in the search, evaluation, and decision processes of consumer behavior
routine response behavior
Buying food
Limited decision making
buying a tv
extensive decision making
going on vacation, moving
showrooming
looking in stores for an item, then shopping online for a better deal on the same item
culture
the set of value, norms, attitudes, and other meaningful symbols that shape human behavior
subculture
a homogenous group of people who share elements of the overall culture as well as unique elements of their own group
social class
a group of people in a society who are nearly equal in status or community esteem
reference group
all the formal and informal groups in society that influence an individuals purchasing behavior
primary membership group
interact face to face, family, friends
secondary membership group
reference group with people associate less consistently and more formally than a primary group
aspirational reference group
a group someone would like to join
norm
a value or attitude deemed acceptable by a group
nonaspirational reference group
a group with which an individual does not want to associate
opinion leader
an individual who influences the opinions of others
socialization
how culture values and norms are passed down to children
separated self-schema
a perspective whereby a consumer sees himself or herself as distinct and separate from others
connected self-schema
a perspective whereby a consumer sees himself or herself as an intergral part of a group
personality
a way of organizing and grouping the consistencies of an individual’s reaction to a situation
self-concept
how consumers perceive themselves in terms of attitude, perceptions, beliefs, and self-evaluation
real – self image
the way an individual actually perceives himself or herself
ideal self-image
the way an individual would like to be perceived
perception
the process by which people select, organize, and interpret stimuli into a meaningful and cohort picture
selective exposure
a process where by a consumer notices certain stimuli and notices others
selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
Selective retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
motive
a driving force that causes a person to take action to satisfy specific needs
learning
a process that creates changes in behavior, immediate or expected, through experience and practice
stimulus generalization
a form of learning that occurs when one response is extended to a second stimulus similar to the first
stimulus discrimination
a learned ability to differentiate among similar products
business maketing
the marketing of goods and services to individuals and organizations for purpose other than personal consumption
business product
a product used to manufacture other goods or services, to facilitate an organization’s operation or to resell to either customers
consumer product
a product bought to satisfy an individual’s personal wants or needs
Content marketing
a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant, and consistent