Marketing Quiz 2

• 1. Need Recognition
• 2. Determination of Involvement Level
• 3.  Identification of Alternatives
• 4. Evaluation of Alternatives
• 5. Purchase Decision
• 6. Post Purchase Behavior

the consumer realizes there is something they want or need, like a light bulb burns out.

How much involvement will go into the decision

Occurs with high risk, expensive, important to everyday life, health, or safety.  How long will you have the product, tied to self image, include comparing products, compare price, check reviews, ask friends, pay attention to ads, read the package

goes right to purchase, occurs with low risks, oreo cookies

Occurs with high involvement, means seeking information on what choices are available

Trying to figure out which choices are better or which is bes, use evaluative criteria: a basis for maing a decision.  IE for a car, gas mileage, make model, safety ratings, appearance, color, style, price, number of miles on a car

what to buy and where to buy it with different motives

The reason for buying a product

The reason where the product is purchased

Anything that happes after the purchase, like product use

Second Thoughts, want to be avoided because positive word of mouth, future purchases, avoid returns, and product disposal

the classification of goods based on purchase behavior

• Convenience Good,
• Shopping Good,
• Specialty Good,
• Unsought Good

• it is purchased without much effort, low involvement.  
• Also an impulse good, or emergency good, aka immediate need, ie running out of gas

A good purchased with effort, high involvement

the consumer perceives all brands as the same, effort is put into finding the cheapest option

the consumer perceives differences between brands, effort is into quality comparisons

the consumer has brand insistence

the consumer does not recognize a need for the product, either because the consumer doesn't need the product or the consumer needs the product but doesn't know it

things that would impact on how people buy products, useful for target marketing

based on the source of income, used because socio-economic class is a better indicator of buyer behavior than income class

They do not need to work for income, their consumer behavior is they are the only ones that spend more on services than products

these are professionals and upper management.  their consumer behavior is the conspicuous consumption is more common among members of this class than the other classes, they are buying things to show the individual is successful

these are white collar, sales, office, teaching, small business owner.  Their consumer behavior is to conform is a more powerful motive

These are blue collar workers, skilled labor, truck drivers, plumbing, factory, farming.  Their consumer behavior, they put more purchases on credit than member os the other classes

These people are unskilled labor, likely unemployed or underemployed.  Their consumer behavior is the compensatory consumption, purchases to make up for what can't be afforded.

These are groups an individual uses as a model for behavior, primary, secondary, aspirational.

Has regular contact with individual, most powerful reference group

the group that the buyer has something in common with.  People of the same age, like the same music.

This is the group that the individual does not belong to but would like to.

they have roles that can be played in the buying process for a household, same individual can play more than one role and each role could be played by more than one individual

One that can influence the decision to purchase something.

This is the actual user of the product

This person who makes the decision

The person going to the store and buying the product.

• Motivation
• Perception
• Learning Theory
• Self Concept

attempted to rank order motives or needs in the order they would be satisfied.  Self-actualization, esteem, social, safety, and physiological- biological

helps the marketer develop multiple appeals for a product, try to have an appeal to each level.

This is when an individual perceives an object or product as a bundle of attributes that can be sorted into two groups, dissatisfiers and satisfiers

they are hygiene factors, they may present the object as undesirable.

they are motivators, they have attributes that can attract

What in individuals attitude is of an object or product

• Physical character of the object
• the individuals condition
• others influence

It is an individuals perception of an object is influence by the object's surroundings, like putting the car on a nice dealer's lot

They are ways information about the object could be interpreted

You notice what is important to you

The way you interpret the stimuli to fit preconception, if you don't like somebody or something you are more likely to notice their flaws

How you remember what is important to you

we are teaching people to buy, a stimulus-response

• Drives
• Cues
• Responses
• Reinforcement

it is the hunger, the need or want

it is the bell, or advertisement

It is the dog drool or purchase

it is the food or product satisfaction.

A stimulus

It is the opinion about yourself, people buy products that reinforce their self concept

• Actual
• ideal
• others

What you really think about yourself

What you would like to think of yourself

What you think other people think of you.

• Customer Differences
• Demand Differences

• Larger size orders
• few customers and prospects

• A derived demand
• short term price inelastic
• cyclical

derived from the consumer market, more paint for cars because of consumer wants

The price has less impact on demand in the short term

The demand swings up and down more than consumer demand does.

the buyers buy the product as a job and have a lot of product knowledge

Fewer middlemen

One business agrees to buy off another business if that business agrees to buy off of them.

Leasing of equipment, office

• Straight Rebuy
• Modified Rebuy
• New Task
• Systems selling or turn key selling

a reorder

Reordering with something different.

A first time purchase by a business

the purchase includes a bundle of services along with the product, services like delivery, training, installation, maintenance, repair contract

• Users
• Influencers
• Buyers
• Deciders
• Gatekeepers

Research and development; finance people

The person that negotiates the purchase

The person who makes the buying decision, often a manager or owner

Someone who controls the flow of information to other roles in the buying process, a secretary or assistant making appointments, mail room sorter.

Different ways that a business can make buying decisions

• Autocratic
• Democratic
• Consultative
• Consensus

One person makes the decision, common in small businesses

The majority rules, common with retailers who use buying committees and the committee votes whether or not to carry a product

One person makes decisions but gets input from others.

All must agree, most likely in partnerships.

Vertical and horizontal

The product is used by most types of businesses.

The product is only used by one type of business.

• Farm Market
• Reseller Market
• Government Market
• Buying Online

Agribusiness, both a customer and source of supply

Corporate farms are replacing family farms.  Farms are becoming fewer but larger.  Contract farming on increase, when a farmer signs a contract before producin the crop to sell it at a specified price, common with poultry

Stores or any other type of retailer or wholesaler

Resellers use different criteria like merchandise turnover, profit margin, traffic building potential

A group of buyers who make the decision on whether or not a product democratically

They are used by small retailers, buyers who are located in a major market to represent the small retailers

The government is the customer

• Open bidding
• negotiated contract

A government announces what the government wants to buy including specifications, and then a business wanting to sell submits a bid

Used instead of open bidding, used when there is only one source for the product

• Private exchange
• English auction
• Reverse auction

A supplier gets access to buyer's inventory information with purchases becoming automatic, there is a set reorder point that triggers an order, common with retailers

Items listed for sale sold to highest bidder

Sellers bid to buyers specifications with lowest bid winning sale.

anyone who might buy the product includes both customers (people who have purchased the product) and prospects (people who might purchase the product)

splitting the market into segments

market segment you want to sell to (you can have more than one)

don’t segment, called majority fallacy (assumption that everyone buys your product for the same reason)

• Demographic
• Economic
• Geographic

people fact like age, gender

income or wealth

attitudes or beliefs (things in the mind), examples: lifestyles, benefit sought from the product, attitude toward product

can focus on specific benefits for each segment, make everybody happy = better reviews (word of mouth), avoid majority fallacy

• Measurable Parameter
• Large enough segment
• Ability to pay
• Have need
• Accessible to promotion

it is clear which segment someone fits into, like age, example of a parameter that is not measurable would be happy people versus unhappy people

must be enough people to sell to so the business can make money

people in the segment must be able to afford the product

people in the segment must need the product

must be able to communicate with the segment in a cost effective manner, usually requires a targeted media

• Age group
• Gender
• Family Life Cycle Stage

• Youth
• Teen
• Young adult
• Mature adult
• Senior

targeted because they are influencers in household buying decision

younger than 35, most popular target for advertisers, young adults are more likely to try new products and they less brand loyal

older than 35, highest income

Older than 65

• Single
• Young Married
• Full nest I
• Full nest II
• Empty nest
• Older single

No Kids

youngest child is at home during the day (not in first grade), household income tends to be lower because something has to be done for the child at home

youngest child is in school, children in school tend to stronger influencers of household buying decisions

no kids at home

Survivor

• Race
• Height

Target people where they live

like cold climates versus warm climates for clothing

like urban, suburban, rural

could be wealth or income but is usually income

• Personal income
• Disposable income
• Discretionary income

Gross income

net income, take home pay, personal income after taxes and deductions

disposable income minus fixed expenses (expenses you have to pay like rent, car payment, phone plan)

• Money income
• Real income
• Psychic income

In dollars and cents

the purchasing power of your income, like income adjusted for inflation (when prices go up the value of income goes down)

how well off you feel you are

• Attitudes and beliefs
• Lifestyle

• Realists
• Authority seekers
• Skeptic
• Hypochondriacs

35%, people who make a decision based on experience or facts they believe to be true, market by statistics, facts, study results

31% - people who make a decision based on the recommendation of someone they perceive to be an expert, market by ads with doctor’s recommendation

23% - people who don’t believe over the counter drugs work anyway or that there is any difference between them, market by don’t bother

11% - people who like being sick because it gets them attention, market by exaggerate the benefits of the drug, list symptoms, ads that focus on attention given to sick people