midterm Flashcards
(106 cards)
1
Q
What is inflation?
A
Persistent increase in the prices of goods and services
2
Q
What are microenvironmental factors?
A
Factors that affect consumers, like company capabilities, competition, and corporate partners
3
Q
Define core competency.
A
Something that makes up the company that satisfies customer needs
4
Q
What are macroenvironmental factors?
A
Factors that operate in the external environment, including CDSTEP and PESTLE
5
Q
What does CDSTEP stand for?
A
Culture, demographics, technological advances, economic situation, political/legal environment, and social and natural trends
6
Q
What does PESTEL stand for?
A
Political, economical, socio-cultural, technology, environmental, and legal
7
Q
List the generational cohorts.
A
- Gen X
- Gen Z
- Gen Y
- Baby boomers
8
Q
What characterizes Generation X?
A
Latchkey kids, less interested in shopping, more likely to carry higher debt loads and travel, born 1966-1971
9
Q
What defines Generation Z?
A
Digital natives, fastest growing, born 1992 and onwards
10
Q
What are the characteristics of Generation Y?
A
Millennials, more skeptical about media, will not buy if difficult, born 1981-1992
11
Q
What defines Baby boomers?
A
Individuality, obsession with maintaining youth, prioritize leisure time, born 1946-1964
12
Q
What are foreign currency fluctuations?
A
Changes in the value of a country’s currency relative to another country which influences consumer spending
13
Q
Define interest rate.
A
Cost of borrowing money
14
Q
What is a recession?
A
Period of economic downturn when the economic growth of the country is negative for at least two consecutive quarters
15
Q
What is the consumer decision process model?
A
Represents steps that consumers go through when purchasing
16
Q
What is an evoked set?
A
The brands that consumers consider when making a purchase decision
17
Q
List the consumer decision steps.
A
- Need recognition
- Information search
- Alternative evaluation
- Purchase and consumption
- Post-purchase behaviour
18
Q
Define locus of control.
A
How much control you think you have over an outcome
19
Q
What is internal locus of control?
A
Individual has some control over outcomes
20
Q
What is external locus of control?
A
Fate and external factors have complete control over outcomes
21
Q
Define post purchase behaviour.
A
Customer satisfaction, post-purchase dissonance or customer loyalty
22
Q
What is post purchase dissonance?
A
When customers have internal conflicts that arise due to an inconsistency between thoughts
23
Q
List the factors influencing consumer buying decisions.
A
- Physiological factors
- Social factors
- Situational factors
24
Q
What are physiological factors?
A
Motives, attitudes, perceptions, learning, lifestyle
25
What are social factors?
Family, reference groups, culture
26
What are situational factors?
Purchase, shopping, temporal state
27
What is internal search for information?
When buyers examine their own memory and knowledge for information
28
What is external search for information?
When buyers seek information outside their personal knowledge
29
List the factors affecting consumers search processes.
* Perceived benefits vs. perceived costs of search
* Locus of control
* Actual or perceived risk
30
What are the 5 types of risk?
* Performance
* Financial
* Social
* Physiological
* Psychological
31
What is a retrieval set?
Brands that can readily be brought forth from memory
32
What are determinant attributes?
Product or service features that are important to the buyer, that differ between brands
33
Define extended problem solving.
When the consumer perceives that the purchase decision entails risk and they devote time and effort into analyzing
34
Define limited problem solving.
When a purchase decision requires a moderate amount of time and effort
35
What is a noncompensatory decision rule?
When consumers choose a product based on certain characteristics regardless of the values of other attributes
36
What is a compensatory decision rule?
When a consumer evaluates one's characteristics against others such that good characteristics compensate for bad ones
37
List the segmentation bases.
* Geographic
* Demographic
* Psychographic
* Behavioral
38
What are the steps in targeting?
Evaluating segment attractiveness and selecting a target market
39
How can you determine if a segment is attractive?
Must be identifiable, reachable, responsive, sustainable and profitable
40
List the factors to determine segment profitability.
* Segment size
* Segmentation adoption
* Percentage
* Purchase behaviour
* Profit margin
* Fixed costs
41
What is an undifferentiated target strategy?
The product or service is perceived to provide the same benefits to everyone
42
Define differentiated target strategy.
Targets several market segments with a different offering for each
43
What is a concentrated (niche) targeting strategy?
Organization selects a primary target market and focuses all its energies on providing a product to fit that market's needs
44
What is micromarketing?
Form of segmentation that tailors a product or service to suit an individual customer
45
What are the steps in the positioning phase?
Identify and develop positioning strategy
46
List the positioning methods.
* Value
* Product attributes
* Benefits and symbolism
* Competition
* Market leadership
47
What is repositioning?
Marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences
48
Define geodemographic segmentation.
How consumers identify themselves using a combination of geographic, demographic, and lifestyle characteristics to segment a market
49
What are PSYTE Clusters?
* Urban bohemia
* Suburban affluence
* Asian heights
50
What is an ideal point?
Position at which a particular market segment's ideal product would lie on a perceptual map
51
What is mass customization?
Interacting on a one-to-one basis with many people to create custom-made products or services
52
What is a perceptual map?
Displays the position of products or brands in the consumers' mind
53
What does VALS stand for?
Psychological tool that classifies consumers into 8 segments
54
List the 8 VALS segments.
* Innovators
* Thinkers
* Believers
* Achievers
* Strivers
* Experiencers
* Makers
* Survivors
55
What is a value proposition?
Communicates the customer benefits to be received from a product or service and the reason for purchase
56
List the steps of marketing research.
* Define research problem and objectives
* Design the research plan
* Collect data
* Analyze data
* Present action plan
57
What is secondary data?
Information that has been collected prior to the start of the focal product
58
What is data mining?
Uses a variety of statistical analysis tools to uncover previously unknown patterns in the data or possible relationships
59
Define big data.
When data sets must be analyzed with a variety of tools because the sets are too large and complex
60
What is external data?
Census data, trade journals, reports
61
What is primary data?
Focus groups, interviews, surveys
62
Define qualitative research.
Exploratory research that focuses on reliability, validity, and sampling
63
List examples of qualitative research.
* Observations
* Social media
* In-depth interviews
* Focus groups
64
What are focus groups?
Small group of people engage in an in-depth guided discussion
65
Define quantitative research.
Information that confirms early insights using surveys and formal studies
66
What is syndicated data?
Data available for free from commercial research firms
67
What is a product?
Anything of value to a consumer that can be offered through a marketing exchange
68
What is market saturation?
Occurs when a product exists in a market for a long time
69
Define innovation.
Allows firms to create a broader portfolio of products
70
What is a diversification of risk strategy?
If some products in one company are competing poorly, others in another category could be doing very well
71
What is licensing?
When firms buy the rights to use the technology or ideas from other firms
72
What is diffusion of innovation?
An innovation is spread through a market group over time over various categories of adopters
73
List the adoption of innovation players.
* Innovators
* Early adopters
* Early majority
* Late majority
* Laggards
74
What factors affect product diffusion?
* Compatibility
* Observability
* Complexity
* Trialability
* Relative advantage
75
List the phases of the product life cycle.
* Introduction
* Growth
* Maturity
* Decline
76
What occurs during the introductory phase?
Low sales and profits, sometimes negative profits, innovators
77
What occurs during the growth phase?
Rising sales and profits, early adopters and majority
78
What occurs during the maturity phase?
Peak sales and profits, lots of competition and saturation, late majority
79
What occurs during the decline phase?
Declining sales and profits, firms choose between niche targeting or exiting the market, laggards
80
What is alpha testing?
Firm determines whether a product will perform according to its design
81
What is beta testing?
Having potential consumers examine a product prototype
82
What is concept testing?
A concept statement describing a product is presented to potential consumers to obtain their reactions
83
What are disruptive innovations?
New products introductions that are simpler and less expensive than existing products
84
Who are early adopters?
Second group of consumers to enter a new product market that does not take much risk
85
Who are the early majority?
Third group of consumers to enter a new product market that represents 34 percent of the population, do not take risks and tend to wait
86
Who are innovators?
First group of consumers to enter a new product market who want to be the first
87
Who are laggards?
Last group of consumers to enter a new product market who like to avoid change and rely on traditionality
88
Who are the late majority?
Fourth group/last group of buyers to enter the market
89
What is the maturity stage?
Stage of the product life cycle when industry sales reach their peak
90
List the product types.
* Specialty
* Shopping
* Convenience
* Unsought
91
What is a product mix?
Complete set of all products offered by a firm
92
Define company breadth.
Refers to the number of product lines offered by a firm
93
Define company depth.
Refers to the number of products within a product line
94
What are stock keeping units?
The smallest unit that we can track within the company
95
What are product lines?
Groups of associated items
96
What is a product category?
Assortment of items that a customer sees as reasonable substitutes for one another
97
Define brand equity.
Brand awareness, value, association, and perceived value
98
What is a brand extension?
Use of the same brand name for new products
99
What is brand dilution?
Unsuccessful brand extension/anything that hurts the association built up by the parent brand
100
What is co-branding?
Multiple brands on the same package or promotion
101
What is brand licensing?
Arrangement between firms where one allows the other to use its branding
102
What are associated services/augmented products?
Non-physical attributes of the product including warranties, support, and after-sale services
103
Define convenience goods/services.
Something customers are not willing to spend any effort to evaluate before purchasing
104
Define shopping goods/services.
Something that consumers will spend time comparing/evaluating
105
Define specialty goods/services.
Something that customers show a strong preference towards and are willing to expend considerable effort
106
Define unsought products/services.
Things that consumers do not search out or know of
