Slides - Consumer Behavior & Segmentation

Question 1

Consumer Decision Model

Answer 1

Trigger; Info Search; Information Processing and Evaluation; Purchase Decision; Post Purchase Evaluation

Question 2

Consumer Decision Making Process - External

Answer 2

Cultural; Social; Interpersonal

Question 3

Consumer Decision Making Process - Internal

Answer 3

Exposure, Attention,

Perception; Learning; Categorization; Memory and Recall; Decision strategies; Self image; Emotions

Question 4

Convergence

Answer 4

 People become more similar to those around them  Attitudes converge in time

Question 5

Divergence

Answer 5

Low-Status Others ; Disliked Others ; Similar Others – don’t want to be too similar; Identity Signaling

Question 6

Identity Signaling

Answer 6

I did it to signal membership in this group ; If other groups adopt it: I lose the ability to unambiguously signal who I am to others & may be mistaken as a member of the wrong group

Question 7

Availability Heuristic

Answer 7

Ease that something comes to mind makes it seem

more likely or more common.

Question 8

False Consensus Effect

Answer 8

False belief that others are more like you than they
really are.May be due to “availability” of similar others.May be due to “availability” of reasons for liking
versus disliking

Question 9

Representativeness Heuristic

Answer 9

Estimates of probability or likelihood of class
membership
 based on extent to which an example “seems to
match,” or represents, the class.

Question 10

Attribute Substitution Heuristic

Answer 10

Target attribute is difficult to access. A different, yet associated attribute is accessible, and is
substituted.
The substitution is not detected.

Question 11

Anchoring and Adjustment Heuristic

Answer 11

Initial value (even if irrelevant) has strong influence How people make estimates How people assign value (ex. willingness to pay

Question 12

Key Decisions marketers make to facilitate the exchange

Answer 12

 Product  Price  Place  Promotion

Question 13

Guiding and influencing these decisions

Answer 13

 Company  Customers  Competition  Collaborators  Context

Question 14

Segmentation: define and how measured?

Answer 14

Identify groups of customers who are similar to each

other/ clustering tools may helpDemographics Behaviors Attitudes / Preferences Values and Aspirations

Question 15

Segmentation benefits to consumer

Answer 15

Tailored products and services
Relevant marketing offers
Personalized experience
Convenience and time savings

Question 16

Segmentation benefits to firm

Answer 16

Finding market opportunities
Responding to customer heterogeneity
Improved resource allocation
Increased marketing efficiency

Question 17

Segmentation success factors

Answer 17

Identifiable
Substantial
Accessible
Stable
Differentiable
Actionable

Question 18

Finding segment tools

Answer 18

Cluster, Factor, Multidimensional Scaling, Discriminant Analysis, CHAID

Question 19

Segmentation Variables

Answer 19

Geographic, demographics, psycho-graphics (lifestyle, personality, interests, values, and attitudes), behavioral, benefits sought (convenience, safety)

Question 20

RFM

Answer 20

recency, frequency, and monetary value of purchases

Question 21

Selecting Target Segments

Answer 21

characteristics of various segments (seg. size, growth rate, profitability); competition (competitors’ strengths); company fit (objectives, resources)

Question 22

Cluster analysis

Answer 22

group customers based on a set of variables so that customers in one group are similar to each other but are different from customers in another group; “distance” metric between these multiple variables and creates groups

Question 23

conjoint analysis

Answer 23

A market research technique that asks customers to make a series of trade-offs between component attributes; analysis of these trade-offs helps companies determine how to develop and price the features of products and services.

Question 24

latent class analysis

Answer 24

A statistical method for identifying unmeasured class membership among subjects using categorical and/or continuous observed variables.

Question 25

mass customization

Answer 25

A product delivery approach utilizing flexible, computer-aided manufacturing systems. Each customer can select and customize the product’s final features to his or her individual preferences.

Question 26

multi-attribute model

Answer 26

An approach that analyzes a consumer’s evaluation of an object (product, brand, service, etc.) as a function of the beliefs that he or she has toward the object on various attributes and the importance of these attributes.

Question 27

one-to-one-marketing

Answer 27

A marketing approach based on customer relationship management (CRM), emphasizing personalized relationships with individual customers.

Question 28

positioning

Answer 28

Defining a value proposition for the target segments; differentiating a product or service (or its brand) from others in the perception of consumers.

Question 29

segmentation

Answer 29

A marketing planning process that involves dividing a broad target market into subsets or groups of consumers who have common needs or characteristics.

Question 30

targeting

Answer 30

Selecting the potential customer segments to whom a company wishes to sell products or services, after an analysis of each segment’s attractiveness.

Question 31

Customer Value

Answer 31

Profit
Experience
high P & E - best; high P Low E - vulnerable customers; low P & E - lost cause; Low P high E - free ridgers

Question 32

Customer Lifetime Value

Answer 32

customer acquisition, customer retention, and customer development

Question 33

Aquire Customers

Answer 33

Increase: market size, marketing investment, & effectiveness of acquisition programs. Offer discounts and incentives. Generate positive word of mouth

Question 34

Customer Development (under customer management)

Answer 34

Share of Wallet; Cross-Selling and Upselling; Redefining the Business

Question 35

Three Cs Model of Brand Positioning

Answer 35

consumer analysis; competitive analysis; company analysis

Question 36

Types of positioning

Answer 36

value; benefit; feature