MKT 3100 Exam 1

Consumer Behavior
The behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.
Personal Consumer
The individual who buys goods and services for his or her own use, for household use, for the use of a family member, or for a friend.
Organizational Consumer
A business, a profit or non-profit institution or a government agency, that buys the goods, services, and/or equipment necessary for the organization to function.
Developing of Marketing Concept
production orientation: sales orientation: marketing concept.
Marketing Concept
in order to be successful, a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition.
Implementing marketing concept
consumer research, segmentation, market targeting, positioning
Consumer Research
The process and tools used to study consumer behavior
Segmentation
Dividing the market into subsets of consumers with common needs or characteristics
Market Targeting
Selecting one or more identified segments to pursue
Positioning
Developing a distinct image for the product in the consumer’s mind, communicating product benefit and a unique selling proposition.
Marketing Mix
Product, Price, Place, Promotion
Customer Value
The ratio between the customer’s perceived benefits and the resources used to obtain those benefits
Customer Satisfaction
The individual’s perception of the performance of the product or service in relation to his or her expectations
Loyal Customers
Buy more products, are less sensitive to price and competitors’ advertising, Are cheaper to serve (know company procedures), Spread positive word of mouth
Customer Trust
Establishing and maintaining trust is the essential foundation for maintaining a long-standing relationship with customers
Customer Profitability-Focused Marketing
Track costs and revenues of individual consumers, categorizes them into tiers based on consumption behavior,a customer pyramid groups customers into four tiers (Platinum, gold, iron, lead)
Traditional Marketing Concept
Make only what you can sell, not try to sell what you make. Focus on the need, not the product. Match customers’ needs better than competitors.
Value and Retention Focused Marketing
Use technology that enables customers to customize what you make. Focus on the product’s perceived value, and the need it satisfies. Understand customer needs and offerings that customers perceive as being more valuable than competitors’.
Inductive Logic
From specifics to generalities
Deductive Logic
From generalities to specifics
Secondary Research
Information that has been collected for reasons other than the specific research project at hand . Includes internal and external data.
Primary Research
Original research conducted to answer specific research questions. qualitative and quantitative
Internal Data
Generated in-house. May include analysis customer files. Useful for calculating customer lifetime value.
External Data
Collected by outside organizations. Includes governments, periodicals, newspapers, books, search engines. Commercial data is also available from market research firms.
Qualitative Research
Depth interviews, focus groups, projective techniques, metaphor analysis. Administered by highly trained interviewer analysts. Findings tend to be subjective. Small sample sizes.
Depth interviews QCM
Also called one-on-one interview. Usually 20 minutes to an hour (may be longer). Non-structured. Interviewer will often probe to get more feedback. Session is usually recorded.
Focus Group QCM
8-10 participants. Respondents are recruited through a screener questionnaire. Last about 1 to 2 hours. Audio- or videotaped to assist analysis. Often held in front of two-way mirrors. Online focus groups are growing.
Projective Techniques
Word Association Techniques, Completion Techniques, Picture & Visual Techniques.
Word Association Techniques
Simple, Controlled, Successive.
Completion Techniques
Sentence,Story.
Picture & Visual techniques
Thematic Apperception Technique (TAT)/Story Telling, Cartoon Test
ZMET
combines collage research and metaphor analysis to bring to the surface the mental models and the major themes or constructs that drive consumer thinking and behavior.
Quantitative Research
Descriptive in nature. Enables marketers to “predit” consumer behavior (positivism). Research methods include surveys, experiments, and observation. Findings are descriptive, empirical, and can be generalized to larger populations.
Observational Research
A form of consumer research that relies on observation of consumers in the process of buying and using products.
Ethnography
The study of behavior in its naturally occurring context.
Experimentation
A research technique that evaluates how a change in a certain variable or combination of variables affect consumer behavior.
Validity
The degree to which a measurement instrument accurately measures what it is designed to measure,
Reliability
The degree to which a measurement instrument is consistent in what it measures.
Liker Scale
Easy to prepare and interpret; simple for consumers to answer
Semantic Differential Scale
Relatively easy to construct and administer
Behavior Intention Scale
Also easy to construct and administer
Rank-order scale
Subjects rank items in order of preference in terms of some criteria.
Customer Satisfaction Measurement
Customer Satisfaction Surveys, Mystery shoppers and customer complaint analysis
Samples
a subset of the population used to estimate characteristics of the entire population.
Sampling Plan
Adresses whom to survey, how many to survey and how to select them.
Probability Sampling
Simple random sample, systematic random sample, stratified random sample, cluster (area) sample
Non-probaility Sampling
Convenience sample, judgement sample, quaota sample and incremental sample
Effective Segmenting
Identifiable, Sizeable, Stable and Accessible
Geodemographic Segmentation
A hybrid segmentation scheme based on the premise that people who live close to one another are likely to have similar tastes, preferences,lifestyles and consumption habits.
Psychographics
A person’s activities, interests and opinions, which help form attitudes toward various issues; a lifestyle.
Psychological S-CS
dealing with individuals
Sociological S-CS
dealing with groups
Anthropological S-CS
dealing with cultures
Consumption-Specific Segmentation
Usage rate( levels of awareness, non-users, light-users, heavy users. level of involvement) Use-situation Segmentation(Special occasions or situations) Benefits Sought (represent consumer needs (Important for positioning)
Micro- and behavioral targeting ISS
personalized advertising messages, narrowcasting(email, mobile) Use of many data sources
Concentrated Marketing ISS
one segment
Differentiated ISS
Several segments with individuals marketing mixes
Counter segmentation ISS
Combining existing segments into a smaller number to more efficiently manage the market) Ex: GM dropping oldsmobile, pontiac, saturn.
Innate Needs
Physiological (or biogenic) needs that are considered primary needs or motives
Acquired Needs
Learned in response to one’s culture or environment. Are generally psychological and considered secondary needs.
Primary/Physiogenic/Biogenic Needs CS
Positive or supply needs ( call for the consumption of something- food, water, etc.) Negative or avoidance needs (Sex for procreation)q
Secondary/ Psychogenic Needs CS
Ego defensive needs, ego bolstering needs, Affecxtional needs (love, friendship etc.)
Rational Motives
Consumers select goals based on totally objective criteria, such as size, weight, price or miles per gallon
Emotional Motive
Selection of goals according to personal or subjective criteria
Dynamics of Motivation
Needs for constantly changing in response to life experiences. Needs are never fully satisfied or once satisfied, they reappear, e.g., hunger. New needs emerge as old needs are satisfied. People who achieve their goals set new and higher goals for themselves.
Goals
the sought-after results of motivated behavior.
Generic goals
general categories of goals that consumers see as a way to fulfill their needs
Product-Specific Goals
are specifically branded products or services that consumers select as their goals
Selection of Goals
personal experiences, physical capacity, prevailing cultural norms and values, goal’s accessibility in he physical and social environment
Substitute Goals
Are used when a consumer cannot attain a specific goal he/she anticipates will satisfy a need. The substitute goal will dispel tension. Substitute goals may actually replace the primary goal over time.
Frustration
Failure to achieve a goal may cause frustration. Some adapt; others adopt defense mechanisms such as aggression, rationalization, regression, withdrawal, etc. to protect their ego.
Arousal of Motives
Physiological arousal, emotional arousal, cogntivie arousal, environmental arousal
Behaviorist School
Behavior is response to stimulus. Elements of conscious thoughts are to be ignored. Consumer does not act, but reacts.
Cognitive School
Behavior is directed at goal achievement. Needs and past experiences are reasoned, categorized, and transformed into attitudes and beliefs.