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Flashcards in Test 2 Deck (28):
1

External factors of SWOT

Macroeconomic matters
Technological change
Legislation
Sociocultural change

2

Consumer decision making process

Need recognition
Information search
Evaluation of alternatives
Purchase
Postpurchase behavior

3

How to stimulate need recognition

Suggestions by sales associates
Advertising
Visual merchandise
Special events in stores
Signage
Displays

4

Information search: internal

Memory
Marketing activities

5

Information search: external

Marketing controllers source
Non marketing source
(Personal experience, public sources)

6

Hoe consumers can reduce cognitive dissonance

Find information that reinforces the purchase

Avoid information that contradicts the purchase

Revoke the decision and return the product

7

How marketing can minimize cognitive dissonance

Effective communication
Follow up
Guarantees
Warranties

8

Types of consumer buying decisions

Routine response behavior
Limited decision making
Extended decision making

9

Low involvement marketing strategy

Maintain product quality
Avoid stock outs
Reduce cognitive dissonance

10

High involvement marketing strategy

Use comparative ads
Personal selling

11

Perception define

Process by which we select, organize and interpret various stimuli into meaningful picture

12

Selective exposure

Consumer notices certain stimuli and ignores it

13

Selective attention

Consumer focuses on a specific object and ignores the surroundings

14

Attraction effect

One choice becomes more attractive when a product that is inferior is added to the choice set

15

Compromise effect

One choice becomes more attractive when a product with more extreme product attributes is added to the set

16

A market is..

People with needs and the ability and willingness to buy

17

Importance of market segmentation

Markets have a variety of product needs and preferences

Can better define customer needs

Can define objectives and allocate resources more accurately

18

Segmentation bases

Characteristics of individuals, groups, or organizations used to divide a total market into segments

19

Criteria for segmentation

Sustainability

Identifiable/measurable

Accessible

Responsiveness

20

Sustainability

Must be large enough to warrant special marketing mix

21

Responsiveness

Unless segments respond to a marketing mix differently, no separate treatment is needed

22

Bases for segmenting consumers

Geography

Demographics

Psychographics

Benefits

Usage rates

23

Benefits of CRM

Customer retention
Upselling
Cross selling
Share of customer wallet

24

Costs of CRM

IT infrastructures
Process change

25

How CLV is measured

Measured by net present value of cumulative profit

26

Factors that affect the consumer buying process

Decision making complexity

Individual influences

Social influences

Situational influences

27

Four types of business markets

Commercial market
Reseller market
Government markets
Institutional markets

28

Characteristics of business markets

Buying center

Hard and soft costs

Reciprocity

Mutual dependence