MGMT 323 Exam 2 Flashcards
(143 cards)
1
Q
What is geographic segmentation?
A
The grouping of consumers on the basis of where they live.
2
Q
What is demographic segmentation?
A
Grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.
3
Q
What is psychographic segmentation?
A
Method of segmenting customers based on how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world.
4
Q
What are psychographics?
A
Used in segmentation; delves into how consumers describe themselves and helps them choose how they occupy their time and the underlying psychological reasons for those choices.
5
Q
What are self-values?
A
Goals for life, not just the goals one wants to accomplish in a day; component of psychographics.
6
Q
What is self-concept?
A
The image a person has of himself or herself.
7
Q
What are lifestyles in psychographics?
A
Refers to the way a person lives his or her life to achieve goals.
8
Q
What is benefit segmentation?
A
The grouping of consumers on the basis of the benefits they derive from products or services.
9
Q
What is behavioral segmentation?
A
Segmentation method that divides customers into groups based on how they use the product or service.
10
Q
What is occasion segmentation?
A
Type of behavioral segmentation based on when a product or service is purchased or consumed.
11
Q
What is loyalty segmentation?
A
Strategy of investing in loyalty initiatives to retain the firm’s most profitable customers.
12
Q
What is geodemographic segmentation?
A
Grouping of consumers based on a combination of geographic, demographic, and lifestyle characteristics.
13
Q
What is an undifferentiated targeting strategy?
A
Marketing strategy used if the product or service is perceived to provide the same benefits to everyone.
14
Q
What is a differentiated targeting strategy?
A
Strategy through which a firm targets several market segments with a different offering for each.
15
Q
What is a concentrated targeting strategy?
A
Marketing strategy of selecting a single, primary target and focusing all energies on providing a product to fit that market’s needs.
16
Q
What is micromarketing?
A
Extreme form of segmentation that tailors product or service to the individual customer’s wants and needs.
17
Q
What is a cookie in marketing?
A
Computer program installed on hard drives that provides identifying information.
18
Q
What is market positioning?
A
The process of defining the marketing mix variables so that target customers have a clear understanding of what the product represents compared to competing products.
19
Q
What is a value proposition?
A
The unique value that a product or service provides to its customers and how it is better than and different from competitors.
20
Q
What does value reflect in marketing?
A
The relationship of benefits to costs or what the consumer gets for what he or she gives.
21
Q
What is a perceptual map?
A
Displays the position of products or brands in the consumer’s mind in two or more dimensions.
22
Q
What is an ideal point in a perceptual map?
A
The position at which a particular market segment’s ideal product would lie.
23
Q
What is marketing research?
A
Set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data to aid decision makers in marketing.
24
Q
What is secondary data?
A
Pieces of information that have already been collected from other sources and are usually readily available.
25
What is primary data?
Data collected to address specific research needs.
26
What is a sample in research?
A group of consumers who represent the consumers of interest in a research study.
27
What is data?
Raw numbers or facts.
28
What is information in marketing?
Organized, analyzed, interpreted data that offers value to marketers.
29
What is syndicated data?
Data available for a fee from commercial research firms.
30
What is scanner data?
Type of syndicated external secondary data obtained from scanner readings of UPC codes at checkout counters.
31
What is panel data?
Information collected from a group of consumers.
32
What is a data warehouse?
Large computer files that store millions and billions of pieces of individual data.
33
What is data mining?
The use of statistical analysis tools to uncover previously unknown patterns in stored databases.
34
What is churn?
The number of consumers who stop using a product or service, divided by the average number of consumers of that product or service.
35
What is big data?
Data sets that are too large and complex to analyze with conventional data management and mining software.
36
What is observation in research?
Exploratory research method examining purchase and consumption behaviors through scrutiny.
37
What is a virtual community?
Online networks of people who communicate about specific topics.
38
What is sentiment mining?
Data gathered by evaluating customer comments posted on social media.
39
What is an in-depth interview?
Exploratory research technique where trained researchers ask questions and record answers.
40
What is a focus group interview?
Research technique where a small group discusses a particular topic.
41
What is a survey?
Systematic means of collecting information from people using a questionnaire.
42
What is a questionnaire?
Form featuring a set of questions designed to gather information from respondents.
43
What are unstructured questions?
Open-ended questions that allow respondents to answer in their own words.
44
What are structured questions?
Close-ended questions with a discrete set of response alternatives.
45
What is experimental research?
Type of conclusive and quantitative research that manipulates variables to determine causal effects.
46
What is biometric data?
Digital scanning of physiological or behavioral characteristics for identification.
47
What is core customer value?
Basic problem-solving benefits that consumers are seeking.
48
What is an actual product?
Physical attributes of a product including brand name, features, quality level, and packaging.
49
What are associated services?
Nonphysical attributes of the product including warranties, financing, support, and after-sale service.
50
What is a consumer product?
Products and services used by people for personal use.
51
What are shopping products?
Products for which consumers will spend time comparing alternatives.
52
What are unsought products?
Products or services consumers do not normally think of buying or do not know about.
53
What are product lines?
Groups of associated items that consumers use together or think of as part of a group.
54
What is breadth in product lines?
Number of product lines offered by a firm.
55
What is depth in product lines?
Number of categories within a product line.
56
What are specialty products?
Products or services toward which the customer shows a strong preference.
57
What are convenience products?
Products for which consumers are not willing to spend any effort to evaluate prior to purchase.
58
What is a product mix?
Complete set of all products offered by a firm.
59
What is brand equity?
The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product.
60
What is brand awareness?
Measures how many consumers are familiar with the brand and what it stands for.
61
What is perceived value?
The relationship between a product's benefits and its cost.
62
What is brand association?
The mental links consumers make between a brand and its key attributes.
63
What is brand loyalty?
Occurs when a consumer buys the same brand's product repeatedly over time.
64
What are manufacturer brands?
Brands owned and managed by the manufacturer.
65
What are retailer/store brands?
Products developed by retailers, also known as private-label brands.
66
What are private label brands?
Brands developed and marketed by a retailer, available only from that retailer.
67
What is a family brand?
A firm's own corporate name used to brand its product lines.
68
What are individual brands?
Use of individual brand names for each of a firm's products.
69
What is brand extension?
Use of the same brand name for new products in the same or new markets.
70
What is line extension?
Use of the same brand name within the same product line.
71
What is brand dilution?
Occurs when a brand extension adversely affects consumer perceptions about the core brand.
72
What is co-branding?
Marketing two or more brands together on the same package or promotion.
73
What is brand licensing?
A contractual arrangement allowing one firm to use another's brand name in exchange for a fee.
74
What is brand repositioning?
Strategy in which marketers change a brand's focus to target new markets.
75
What is primary packaging?
The packaging the consumer uses, such as a toothpaste tube.
76
What is secondary packaging?
The wrapper or exterior carton that contains the primary package.
77
What is sustainable packaging?
Product packaging that is ecologically responsible.
78
What is innovation?
Process by which ideas are transformed into new products and services that will help firms grow.
79
What is diffusion of innovation?
Process by which the use of an innovation, whether a product or service, spreads throughout a market group over time and over various categories of adopters.
80
What are pioneers?
New product introductions that establish a completely new market or radically change both the rule of competition and consumer preferences in a market.
81
What are first movers?
Product pioneers that are the first to create a market or product category, establishing a commanding and early market share lead.
82
Who are innovators?
Those buyers who want to be the first to have the new product or service.
83
Who are early adopters?
Second group of consumers in the diffusion of innovators model; generally don't like to take as much risk as innovators but wait and purchase after careful reviews.
84
What is the early majority?
Represents approximately 34% of the population; members don't like to take much risk and tend to wait until bugs are worked out of a product.
85
What is the late majority?
Last group of buyers to enter a new product market; when they do, the product has achieved its full market potential.
86
Who are laggards?
Consumers who like to avoid change and rely on traditional products until they are no longer available.
87
What is reverse engineering?
Involves taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents.
88
Who are lead users?
Innovative product users who modify existing products according to their own ideas to suit their specific needs.
89
What is a concept?
Brief written descriptions of a product or service; its technology, working principles, and forms.
90
What is concept testing?
Process in which a concept statement that describes a product or service is presented to potential buyers or users to obtain their reactions.
91
What is product development?
Process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product's form and features.
92
What is a prototype?
First physical form or service description of a new product still in rough or tentative form, produced through different manufacturing processes.
93
What is alpha testing?
An attempt by the firm to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended.
94
What is beta testing?
Having potential customers examine a product prototype in a real use setting to determine its functionality, performance, potential problems, and other issues.
95
What is a premarket test?
Conducted before a product or service is brought to market to determine how many customers will try and then continue to use it.
96
What is test marketing?
Introduces a new product or service to a limited geographic area prior to a national launch.
97
What is the product life cycle?
Defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace.
98
What is the introduction stage?
Stage of product life cycle when innovators start buying the product.
99
What is the growth stage?
Stage of the product life cycle when the product gains acceptance, demand and sales increase, and competitors emerge.
100
What is the maturity stage?
Stage of product life cycle when industry sales reach their peak, and firms try to rejuvenate their products.
101
What is the decline stage?
Stage of the product life cycle when sales decline and the product eventually exits the market.
102
What is profit orientation?
A company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing.
103
What is target profit pricing?
Pricing strategy implemented by firms when they have a particular profit goal as their overriding concern.
104
What is maximizing profits?
Profit strategy that relies primarily on economic theory.
105
What is target return pricing?
Pricing strategy implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated.
106
What is sales orientation?
Company objective based on the belief that increasing sales will help the firm more than increasing profit.
107
What is premium pricing?
Competitor based pricing method where the firm deliberately prices a product above the prices set for competing products.
108
What is competitor orientation?
Company objective based on the premise that the firm should measure itself primarily against its competition.
109
What is competitive parity?
Firms strategy of setting prices that are similar to those of major competitors.
110
What is status quo pricing?
Competitor oriented strategy in which a firm changes prices only to meet those of competition.
111
What is customer orientation?
Company objective based on the premise that the firm should measure itself primarily according to whether it meets its customer needs.
112
What are prestige products/services?
Those that consumers purchase for status rather than functionality.
113
What is price elasticity of demand?
Measures how changes in a price affect the quantity of the product demanded.
114
What does elastic mean?
Refers to a market for a product or service that is price sensitive.
115
What does inelastic mean?
Refers to a market for a product or service that is price insensitive.
116
What is dynamic pricing?
Refers to the process of charging different prices for goods or services based on various factors.
117
What is the income effect?
Refers to the change in the quantity of a product demanded by consumers due to a change in their income.
118
What is the substitute effect?
Refers to consumers' ability to substitute other products for the local brand.
119
What is cross price elasticity?
The percentage change in demand for product A that occurs in response to a percentage change in price for product B.
120
What are complementary products?
Products whose demand curves are positively related, rising and falling together.
121
What are substitute products?
Products for which changes in demand are negatively related.
122
What is total cost?
Sum of variable and fixed costs.
123
What is break-even analysis?
Technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales.
124
What is contribution per unit?
Equals the price less the variable cost per unit.
125
What is an oligopolistic monopoly?
Occurs when only a few firms dominate a market.
126
What is a price war?
Occurs when two or more firms compete primarily by lowering their prices.
127
What is predatory pricing?
Firms practice of setting a very low price to drive competition out of business.
## Footnote
Illegal under both the Sherman Act and Federal Trade Commission Act.
128
What is monopolistic competition?
Occurs when there are many firms that sell closely related but not homogeneous products.
129
What is pure competition?
Occurs when different companies sell commodity products that consumers perceive as substitutable.
130
What is the gray market?
Employs irregular but not necessarily illegal methods to sell goods at prices lower than those intended by the manufacturer.
131
What is everyday low price (EDLP)?
Strategy companies use to emphasize the continuity of their retail prices at a level between regular nonsale and deep discount sale prices.
132
What is high/low pricing?
Pricing strategy that relies on the promotion of sales during which prices are temporarily reduced.
133
What is reference pricing?
Price against which buyers compare the actual selling price of the product.
134
What is market penetration strategy?
Growth strategy that employs the existing marketing mix and focuses the firm's efforts on existing customers.
135
What is the experience curve effect?
Refers to the drop in unit cost as the accumulated volume sold increases.
136
What is price skimming?
Strategy of selling a new product at a high price that innovators are willing to pay, then lowering prices to capture more price-sensitive segments.
137
What is loss leader pricing?
Takes the tactic of leader pricing one step further by lowering the price below the store's cost.
138
What is bait and switch?
A deceptive practice of luring customers into a store with a low advertisement price on an item only to pressure them into purchasing a higher priced model.
139
What is price discrimination?
Practice of selling the same product to different resellers or consumers at different prices.
140
What is price fixing?
Practice of colluding with other firms to control pricing.
141
What is horizontal price fixing?
Occurs when competitors that produce and sell competing products collude to control prices.
142
What is vertical price fixing?
Occurs when parties at different levels of the same marketing channel collude to control prices.
143
What is the manufacturer's suggested retail price (MSRP)?
Price that manufacturers suggest retailers use to sell their merchandise.
