Principles of Marketing – Chapters 4-6

consumer behavior
The actions a person takes in purchasing and using products and services.
purchase decision process
The stages a buyer passes through in making choices about which products or services to buy.
involvement
The personal, social, and economic significance of a purchase to the consumer.
motivation
The energizing force that stimulates behavior to satisfy a need.
personality
A person’s consistent behaviors or responses to recurring situations.
perception
The process by which a person selects, organizes, and interprets information to create a meaningful picture of the world.
perceived risk
The anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase.
learning
Behaviors that result from repeated experience and reasoning.
brand loyalty
A favorable attitude toward and consistent purchase of a single band over time.
attitude
A tendency to respond to something in a consistently favorable or unfavorable.
beliefs
A consumer’s perception of how a product or brand performs.
opinion leaders
Individuals who have social influence over others.
word of mouth
People influencing each other in personal conversations.
reference groups
People to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
brand community
A specialized group of consumers with a structured set of relationships involving a brand, fellow consumers of that brand, and the product in use.
family life cycle
A family’s progression from formation to retirement, each phase bringing with it distinct purchasing behaviors.
subcultures
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes.
business marketing
The marketing of products and services to firms, governments, or not-for-profit organizations.
organizational buyers
Manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.
North American Industry Classification System
Policies common industry definitions for Canada, Mexico, and the United States.
derived demand
The demand for industrial products and services is driven by demand for consumer products and services.
organizational buying behavior
The process by which organizations determine the need for products and then choose among alternative suppliers.
buying center
The group of people in an organization that participates in the buying process.
buy classes
Three types of organizational buying situations; new buy, straight rebuy, or modified rebuy.
e-marketplace
Online trading communities that bring together buyers and supplier organizations.
traditional auction
Occurs when a seller puts an item up for sale and would-be buyers compete with each other.
reverse auction
Occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other.
protectionism
The practice of shielding one or more industries within a country’s economy from foreign competition through the use of tariffs and quotas.
tariff
A government tax on goods or services entering a country, primarily serving to raise prices on imports.
quota
A restriction placed on the amount of a product allowed to enter of leave a country.
World Trade Organization
Institution that sets rules governing trade between its members through a panel of trade experts.
global competition
Exists when firms originate, produce, and market their products and services worldwide.
multidomestic marketing strategy
A multinatinoal firm’s strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business.
global marketing strategy
The practice of standardizing marketing activities when there a cultural similarities and adapting them when cultures differ.
global brand
A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.
global consumers
Consumer groups living in many countries or regions of the world who have similar needs or seek similar benefits from products or services.
economic espionage
The clandestine collection of trade secrets or proprietary information about competitors.
cross-cultural analysis
The study of similarities and differences among consumers in two or more nations or societies.
values
A society’s personality or socially preferable modes of conduct or states of existence that tend to persist over time.
customs
Norms and expectations about the way people do things in a specific country.
Foreign Corrupt Practices Act (1977)
A law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business.
cultural symbols
Things that represent ideas or concepts in a specific culture.
back translation
Retranslating a word or phrase back into the original language using a different interpreter to catch errors.
currency exchange rate
The price of one country’s currency expressed in terms of another country’s currency.
exporting
Producing goods in one country and selling them in another country.
joint venture
When a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company.