Chapter 3.3

Question 1

List the group factors influencing consumer buying decisions

Answer 1

-Culture
-Family
-Reference Group
-Opinion Leaders

Question 2

List the individual factors influencing buying decisions

Answer 2

-Motivation
-Perception
-Learning Ability
-Attitude
-Personality
-Lifestyle

Question 3

What are the phases in consumer decision making

Answer 3

-Need for recognition

-Search for information (Consumer finds out the price, benefits,ect)

-Evaluation of alternatives

-Purchase decision

-Post-purchase evaluation

Question 4

Name the post-purchase behaviours that management must monitor

Answer 4

-Post-purchase satisfaction (or dissatisfaction)

-Post-purchase actions.

-Cognitive dissonance

Question 5

List and elaborate on the types of decision making

Answer 5

-Real decision-making
Involves extensive problem-solving

-Impulse decision-making
Spur of the moment decision

-Hibitual decision making
When a customer is brand loyal

Question 6

Elaborate on market segmentation

Answer 6

Divide the heterogeneous market into fairly homogeneous subsets

Question 7

Define a homogeneous subset

Answer 7

A market that has customers with the same needs and wants

Question 8

Define target marketing

Answer 8

Process of deciding which segments to pursue.

Question 9

What are the benefits of market segmentation?

Answer 9

-A greater degree of customer satisfaction can be achieved

-New marketing opportunities can be identified

-It provides guidelines for the development of separate market offerings and strategies for various segments

Question 10

What are the preconditions for the market segment

Answer 10

-Measurable

-Large enough

-Actionable

-Differentiable

Question 11

List and explain the bases for segmenting markets

Answer 11

-Geographic
Divided into countries, population density ect

-Demographic
Divided according to age, education, generation, social class, race and culture

-Psychographic
Divided according to social class, personality traits , values and activities

Question 12

What are the various behavioural segments

Answer 12

-Purchase occasions: regular vs. special occasion

Benefit sought: Benefit consumer seek- emotional or economical

User status: Non-users, ex-users, potential users or regular users

Usage rate: How often

Loyalty status: loyalty towards the organisation or its brand names

Buyer readiness stage: Customer’s readiness to buy.

Question 13

What things should you consider when selecting a potential target market

Answer 13

Segment size and growth possibilities

Attractiveness and potential profitability

The resources and skills of the organisation

Compatibility with the organisation’s objectives

Cost of reaching the target market

Question 14

What are the different target market segments

Answer 14

Undifferentiated targeting

Concentrated targeting

Question 15

Discuss concentrated targeting

Answer 15

Focus on one specific segment

Can lead to greater expertise in production, distribution and marketing communication and better customer satisfaction

Disadvantage – all efforts focus on one source, if it does not work, may be out of business

Question 16

Discuss differentiated targeting

Answer 16

Targets two or more market segments, with a unique marketing strategy for each one.

Focuses on different needs, but can be costly

Question 17

Discuss undifferentiated targeting

Answer 17

Pursue whole market, ignores the differences

Advantage – economies of scale

Not really used anymore: Marketers should avoid trying to please everyone

Question 18

Define product positioning

Answer 18

It refers to the way customers perceive a product in terms of its characteristics and advantages and its relation to the competition.

Question 19

Name the positioning process

Answer 19

-Identify all major competing brands

-Identify which variables are most relevant to consumer needs and wants

-Determine the consumers perception of your brand and competing brands

-Analyse the brands current position

-Determine which features consumers prefer

-Develop a positioning strategy that best satisfies consumer preferences