What are the six stages of the consumer decision-making process?
1. Problem recognition
2. Internal Search
3. External Search
4. alternative Evaluation
6. post-purchase evaluation
What is a major point of each stage?
1. Problem recognition is where the consumer perceives a difference between the desired and actual state and is motivated to try to close this gap.
2. Internal information search is seeking a solution to the perceived problem.
3. External information search involves seeking information from one or more sources when internal search is insufficient.
4. Alternative evaluation is where the consumer compares the various choices that may best meet the individual need.
5. Purchase is seeking one brand or alternative over the others.
6. Post purchase evaluation has led many health care organizations to measure the satisfaction of their patients or their referral sources.
Define tangible criteria as it relates to consumers.
Might include the cost of joining a particular health plan or the performance of a particular hospital or medical group in terms of how they treat children with asthma or women in terms of breast cancer screening.
Define intangible cirteria as it relates to consumers.
might be the way a particular physician's office feels when you walk in for an appointment.
What is the importance of post-purchase evaluation?
Has led many health care organizations to measure satisfaction of their patients or their referral sources.
What is the rationale for healthcare entities to measure post-purchase satisfaction?
A health care organization can focus management attention on areas of service that need improvement.
Define cognitive dissonance.
Pertains to what occurs after a choice is made
Define decision freedom.
affects decision making when an individual's choice is constrained.
When cognitive dissonance occurs, what will consumers do to reduce tension or anxiety over their choice?
consumers will again engage in search behavior to reduce the tension or anxiety over the choice.
In the alternative decision-making sequence, the term involvement refers to:
the level of the consumer's personal investment in the purchase
Routine decision making involves:
Brand loyalty refers to:
in which the consumer regularly chooses the same product or service to fulfill a recognition need.
What is an example of limited decision making?
when consumers buy over the counter pharmaceutical products.
emcompasses the goals or needs that propel a consumer to action
How is Maslow's Heirarchy of Needs framework useful to marketers?
is particularly useful in considering the positioning of products or services
Measuring consumer attitudes toward a product or service is always a measure of purchase intention True or False
False - Measuring consumer attitudes toward a product or service is not necessarily a measure of purchase intention.
represents a consumer's enduring cognitive evaluation, feelings, or action tendencies toward some person, object, or idea
What is lifestyle?
the manner in which people live as demonstrated by how they spend their time, what they think, and the interests they have.
What is an AIO statement and give an example
refers to attitudes, interests, and opinions
1. I enjoy exercising whenever I get the chance.
2. It is important to watch my caloric intake
3. In recent years too much attention has been paid to cholesterol levels.
4. When I exercise daily, I feel better.
5. Most of the stories on holistic medicine make me suspicious about the benefits.
6. I get nervous when my physician isn't fit.
7. I'm not sure exercising regularly really helps.
8. I like to read stories about nutrition and fitness.
The VALS revised scheme categorizes consumers into what eight (8) distinct groups?
For understanding consumer preferences in media, electronics, travel and lodging, recreational activities, automotive purchases, home furnishings, and clothing
What is PRIZM?
Potential Rating Index by Zip Market - examines census data and consumer lifestyle by zip code to develop a demographic profile.
What is the foundation of PRIZM?
demographics combined with consumption and media data
the process by which individuals organize, select, and interpret information
What is perceived risk?
the concerns or anzieties a consumer anticipates regarding a product or service purchase
Define Family Life Cycle?
describes the stages the typical consumer passes through from childhood through death of a spouse
What are the twon decision-making patters that emerge in families?
Syncratic desicions in which the husband and wife participate jointly and autonomous decisions decisions of lesser importance that the husband or the wife decides independently
What is the role of the reference group?
a group that influcences an individual's thoughts or behaviors
What is mass marketing?
an approach in which an organization develops its marketing mix (the 4 p's) to appeal to the broadest group - the largest number of people possible.
What is the underlying rationale of mass marketing strategy?
that everyone in the market wants the same product - delivered, priced and promoted the same way
What is market segmentation?
The process of grouping into clusters consumers who have similar wants or needs to which an organization can respond by tailoring one or more elements of the marketing mix.
Market segmentation fall into what two categories?
concentration strategies or multisegment strategies
What are some benefits of segmenting a market?
It helps the marketer to address the diversity that exists in a population. If done appropriately, segmentation can be used to identify homogeneous concentrations of customers to whom programs or services can be marketed. Helps identify the best distribution channel for a particular service or product. Usually more effective communication vehicles. Focus resources to specific groups, economies of scale can usually be acheived. customer retention is increased when a particular service, program or strategy is more closely tailored to the customer
What is concentration strategy?
targeting one segment of the market
What are two problems/limitations with the concentration strategy?
majority fallacy and that a firm can develop a reputation that identifies it with just one segment of the market, making it difficult to expand its business to serve other segments.
What is niche strategy?
targets a narrow segment with specialized products or services
A strategy of altering one or more marketing mix elements to respond to various wants and needs of different groups is called:
When selecting marketing segments, they should be selected based on what criteria?