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One basic idea of the marketing concept is

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survival and success require a profit.

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The aim of marketing is to

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identify customers' needs and meet those needs so well that the product almost "sells itself."

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From the Industrial Revolution until the 1920s, most companies were in the

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production era.

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Administrators at a university noted that they were 200 students short of their enrollment projection as the start of the school year approached. The president of the university, fearing a revenue shortage, told the director of admissions, "You need to use whatever means necessary to get enough students to meet the projection before classes start. Run ads in the newspaper, call high school guidance counselors, recruit from our pool of rejected applicants—whatever it takes." The university president is operating as though he was in the:

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Sales era.

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Which of the following is NOT one of the "universal functions of marketing"?

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Production

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what are the universal functions of marketing?

answer

Standardization Financing Buying Transporting

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As a firm moves from the sales era to the marketing department era it is likely to

answer

begin to integrate all the firm's marketing activities.

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Customer equity is

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increased when a firm is able to increase the earnings stream expected from current or prospective customers.

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_______ means that the marketing mix is distinct from and better than what is available from a competitor.

answer

Differentiation

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An Australian wine producer, facing declining sales at home, set up a new channel of distribution to sell wine in the United States. This seems to be an effort at

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market development.

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In which quadrant of the SWOT analysis tool does the following fit? A firm has adequate resources.

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Strengths.

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A marketing strategy specifies:

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a target market and a related marketing mix.

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The _____ area of the marketing mix includes decisions related to telling the target market or others in the channel of distribution about the "right" product.

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promotion

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The difference between target marketing and mass marketing is that target marketing

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focuses on specific customers, while mass marketing aims at an entire market

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The packaging design for a new flavor of Ben & Jerry's ice cream is an aspect of which component of the marketing mix?

answer

Product

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The three basic tasks of ALL managers, according to the text, are:

answer

planning, implementation, and control.

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In which quadrant of the SWOT analysis tool does the following fit? A firm is falling behind in research and development.

answer

Weaknesses.

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Coupons, samples, and point-of-purchase materials are examples of

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sales promotion.

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The main difference between a "marketing strategy" and a "marketing plan" is that

answer

time-related details are included in a marketing plan

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The ______________ era is a time when all marketing activities are brought under the control of one department to improve short-run planning

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marketing department.

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A firm with a marketing orientation is MOST likely to:

answer

advertise how a product meets customers' needs.

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The direct market environment

answer

includes customers, the company, and competitors.

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AT&T reacted to the popularity of the cellular phone by adding several cellular models to its line of regular phones. Availability and popularity of cellular phones is most likely due to changes in the ____________ environments.

answer

social and technological

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Of the following, the last objectives that a firm should specify are its

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advertising objectives

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The North American Free Trade Agreement (NAFTA):

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Has resulted in the movement of production jobs to Mexico due to lower labor costs.

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The way in which an economy's resources are converted to output is part of the _______________ environment.

answer

technological

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Which of the following U.S. antimonopoly laws deals with conspiracy to fix prices?

answer

Sherman Act (1890)

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According to the text, which of the following is NOT a basic guideline for setting a firm's objectives?

answer

Identifying its current and prospective competitors.

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Sometimes the Federal Trade Commission is lenient in allowing mergers between firms that have been competitors. When considering a merger, companies should take this aspect of the _____________ environments into consideration.

answer

legal and political

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Along with studying trends in the environment, a first step in looking for attractive opportunities is to:

answer

understand the resources and objectives of the firm

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Maria Lopez runs an errand service from her home. For a fee, she will pick up dry cleaning, buy groceries, plan small parties, and do errands for her customers. The demand for this type of service has increased because of changes in the

answer

cultural/social environment

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Which of the following statements about nationalism is NOT TRUE?

answer

Nationalism can be limiting in international markets. A "Buy American" policy reflects nationalistic attitudes in the United States. Nationalistic feelings can block all marketing activity in some international markets. **Nationalistic feelings always reduce sales. Nationalism emphasizes one country's interests before everything else.

question

Rising costs and inflation are part of the uncontrollable ______________ environment.

answer

economic

question

GE's planning grid approach

answer

could be adapted easily by another firm with different objectives.

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Interest rates

answer

often change with changes in the economy.

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A good mission statement should NOT

answer

embrace everything the firm stands for.

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Strategic business units:

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Are organizational units within a larger company.

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The _____ environment sets the basic rules for how a business can operate in society.

answer

legal

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With General Electric's strategic planning grid:

answer

managers make three-part judgments about the business strengths and industry attractiveness of all proposed or existing product-market plans.

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Which of the following is NOT an example of how the economic environment may affect marketing strategy planning?

answer

The demand for bikes is increasing because consumers are becoming more health conscious.

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The "total profit" approach to evaluating possible product-market strategic plans:

answer

may support a plan that is not the most profitable in the short run.

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"Good" market segments are those that are:

answer

operational and substantial.

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A generic market definition includes

answer

customer (user) needs, customer types, and geographic area

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When major airlines target business travelers because they travel often and typically pay at least three times the price for a ticket as leisure travelers, these airlines are segmenting the market primarily on:

answer

rate of use.

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When PepsiCo asked its advertising agency to develop a campaign for its Mountain Dew soft drink, it gave the agency a statement describing the young, fun-loving, free spirit image of their new citrus flavor drink, what type of statement was this?

answer

Positioning

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Travel Magic Company wants to enter the hotel business. Its marketing managers are brainstorming ideas about why customers go to different hotels and then writing down customer requirements. At this point, Travel Magic is engaging in which step of the seven-step approach for segmenting product-markets?

answer

Identifying potential customers' needs

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A ____ is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services.

answer

market

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BEHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:

answer

type of problem-solving. kind of shopping. brand familiarity. benefits sought. ***All of the above are behavioral dimensions.

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A generic market is one in which

answer

tries to identify homogeneous submarkets within a product-market.

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Which of the following is a possible danger when using a combining approach to target marketing

answer

Competitors may do a better job appealing to submarkets.

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trategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?

answer

Behavioral needs and attitudes of consumers.

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EHAVIORAL (rather than DEMOGRAPHIC) segmenting dimensions include:

answer

purchase relationship.

question

anders Beverages, Inc., is targeting non-juice drinkers with a new line of healthy fruit juices. Identify the segmenting dimension most likely being used by Sanders Beverages.

answer

Behavioral

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Which of the following is a DEMOGRAPHIC segmenting dimension?

answer

Family life cycle.

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Which of the following is a consumer market demographic dimension?

answer

Sex. Age. Occupation. Education. **All of the above are examples.

question

om and Sally Jones are preparing to purchase a new car. He currently has a Toyota Camry and she has a Honda Accord. They now have two children under age 5, so they plan to trade in Sally's car to purchase a minivan. Sally and Tom decided on a Honda Odyssey because Sally is familiar with Hondas and thinks they are very reliable. In this purchase situation, Tom and Sally's family life cycle stage is a _____________ segmentation dimension, and the benefit Sally seeks (reliability) is a _____________ segmentation dimension.

answer

demographic; behavioral

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When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using?

answer

Benefits sought

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When a company segments its business customers on the basis of whether or not they require contract bids over the Internet, what segmenting dimension is this company using?

answer

Purchasing methods.

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A _____ is a relatively homogeneous group of customers who will respond to a marketing mix in a similar way. mark

answer

market segment.

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______________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.

answer

Positioning

question

Regarding the family life cycle, singles and younger couples without children

answer

are more willing to try new products and brands

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In 2009, 100 percent of this country's population was in urban areas.

answer

Singapore

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Over the past decade, growth in population in the western states of the U.S. averaged about ______ percent.

answer

15

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The median family income in the U.S. in 2008 was about:

answer

$61,500

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Smart marketers might respond to the changes in the U.S. population by:

answer

$25,000

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The amount of disposable income a family has left after paying for its "necessities" is called its ______________ income.

answer

discretionary

question

Disposable income

answer

is what is left after taxes.

question

Which of the following statements about ethnic dimensions of the U. S. market is True?

answer

Ethnic groups buy differently and have different needs. Many firms make the mistake of treating all consumers in an ethnic group as homogeneous. The number of ethnic consumers is growing at a faster rate than the overall society. The buying power of ethnic submarkets is increasing rapidly. ***All of the above are true.

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Which of the following is NOT an accurate statement about consumer markets in the United States?

answer

The number of people in the 65+ age group will decline very substantially in the next decade.

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About ______ percent of the U.S. population is African American

answer

13

question

The number of people living on farms in the United States is ______________ percent of the total population.

answer

less than 2

question

Migration from rural to urban areas

answer

can result in misleading descriptions of markets.

question

Mobility has an important bearing on marketing planning. Approximately what percent of Americans move each year?

answer

12 percent

question

A Metropolitan Statistical Area (MSA) is:

answer

generally centered on one city or urbanized area of 50,000 or more inhabitants and includes bordering urban areas.

question

Single-adult households account for ______________ percent of all households in the United States

answer

27

question

Identify the incorrect statement pertaining to the GNI per capita.

answer

The GNI per capita in the United States is the highest in the world.

question

Which of the following observations about population trends is incorrect?

answer

U.S. population makes up more than 10 percent of total world population.

question

Regarding population growth in the world,

answer

population growth in Japan and Europe is even slower than in the U.S. less-developed countries generally experience the fastest growth. the populations of Madagascar and Somalia will likely increase by more than 50 percent between 2010 and 2025 while the populations of the U.S. and Canada will grow by less than 20 percent. ** All of the above are true.

question

1. What is marketing about?

answer

Makes sure the right goods and services are produced- analyze needs, predict wants, estimate demand, predict when, determine where, estimate price, decided promotion, estimate competition and provide service

question

2. Define Marketing.

answer

the performance of activities that seek to accomplish an organization's objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.

question

3. How has the role of marketing changed over the years?

answer

Simple trade era-sell surplus, production era-increase supply, sales era-beat competition, marketing department era-coordiante and control, marketing company era-long-fun customer satisfaction

question

4. What does the marketing concept mean?

answer

Customer satisfaction guides the whole organization and all individuals work together to accomplish this goal.

question

5. What is marketing orientation and how it differs from production orientation?

answer

Production orientation- making whatever products are easy to produce and then trying to sell them. Marketing orientation-designing marketing programs that will meet customer needs

question

Functions and duties of a marketing manager

answer

: planning, implementation, and control.

question

1. What is a target market?

answer

a fairly homogenous group of customers to whom a company wishes to appeal

question

2. What is the marketing mix (4Ps)?

answer

Product, place, price, promotion

question

3. Is customer part of the marketing mix? Why?

answer

No, the marketing mix surrounds the customer. Customer should be the target of all marketing efforts.

question

4. What is a marketing plan?

answer

A written statement of a marketing strategy and the time-related details for carrying out the strategy

question

5. Define the four basic types of marketing opportunities:market penetration, market development, product development and diversification. Be ready to provide examples.

answer

Market penetration-means trying to increase sales of a firm's present products in its present market. Market development-means trying to increase sales by selling present products in new markets. Product development- means offering new or improved products for present markets. Diversification means moving into totally different lines of business.

question

1. What are the forces that shape the marketing environment? What are the internal forces? What are the external forces?

answer

Macro factor and micro factors. Macro factors are the one that affect the organization indirectly, these are (pestel) Political enviroment socia-cultural technological and Ecological leagal while micro factors are those which affect the organization directly it involve customers competitors suppliers and public

question

2. What is a mission statement and what is its purpose?

answer

: sets out the organization's basic purpose for being. Purpose: (1) A Purpose Why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the needs of all stakeholders (including employees, and society at large?)

question

2. 3. What is competitors analysis and why is important?

answer

An organized approach for evaluating the strengths and weaknesses of current or potential competitor's marketing strategies. It helps to see what competitors are doing and what you can do to keep up with them.

question

4. How does the technological environment affect marketing?

answer

It gives new opportunities for new products and for new processes.

question

5. How has the Internet reshaped marketing?

answer

It made the exchange of information easier. It changes how consumers shop and marketers market

question

6. What are some examples of political events or trends that have affected marketing?

answer

Nationalism- emphasis on a country's interests before everything else. Regional grouping- Unification of Europe and free trade among the nations of North America. NAFTA- lays out a plan to reshape the rules of trade among the US, Canada, and Mexico

question

7. Give examples of how the legal environment has impacted marketing?

answer

Antimonopoly laws, breaking civil and criminal laws, FDA, Consumer Product Safety Act,

question

8. What are some social and cultural trends that have impacted marketing in the past?

answer

Changes in the role of women in society, changes come slowly

question

1. What is segmentation and targeting?

answer

Market targeting is the second of three steps in product promotion — the other two are segmentation and positioning. Together, these stages are sometimes called STP. Whereas segmentation breaks up an entire market into different groups, targeting is the process of selecting exactly which one of the groups will be the focus of advertising efforts. Once the company knows the customers it will concentrate on, it positions its products or services specifically for that group. People sometimes use this term to refer to the entire set of STP processes, however, which creates some confusion.

question

2. What is differentiation and positioning?

answer

Differentiation is what characteristics you are promoting to the consumer that makes your product different and/or of higher value than your competitors products offerings. Positioning generally comes next and relates to the position in the market your are targeting. i.e. low cost, middle ground or higher end price brackets. basically who in the market your product will be targeted at. (segmentation)

question

3. Process of naming product-markets and generic markets

answer

1. product type 2. customer needs 3. geographic area 4/ customer type

question

4. What are the three different targeting approaches explained in your textbook? How do they differ?

answer

single target market approach: segmenting the market and picking one of the homogeneous segment as the firm's target market, multiple target market approach: segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix, combine target market approach: combining two or more submarkets into one larger target market as a basis for one strategy

question

5. What are some dimensions that can be used to segment markets?

answer

Qualifying dimensions: those relevant to including a customer type in a product-market. Determining dimensions: those that actually affect the customer's purchase of a specific product or brand in a product-market

question

6. What is a perceptual map and how does it help a firm to position their products?

answer

Marketing research technique in which consumer's views about a product are traced or plotted (mapped) on a chart. Respondents are asked questions about their experience with the product in terms of its performance, packaging, price, size, etc. Theses qualitative answers are transferred to a chart (called a perceptual map) using a suitable scale (such as the Likert scale), and the results are employed in improving the product or in developing a new one. See also mapping.

question

6. Definition of market

answer

An actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

question

7. Major trends in global population outsourcing, people moving to more urban areas

answer

...

question

8. Difference between GDP and GNI:

answer

GDP: total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country. GNI: measure that is similar to GDP, but GNI does not include income earned by foreigners who own resources in that nations.

question

10. Major population trends in the US consumer market:

answer

people are moving to more urban areas- this has made it easy in major cities to simplify place and promotion decisions

question

11. Differences among Total Income, disposable income and discretionary income

answer

real income: income that is adjusted to take out the effects of inflation on purchasing power, disposable income: what is left after taxes, discretionary income: what is left of disposable income after paying for necessities

question

12. Stages of Modern Family Cycle: usual flow:

answer

: young single, young married without children, young married with children, middle-aged married with children, middle-aged married without dependent children, older married, older unmarried. Deviations in flow: young divorced without children, middle aged divorced without children, young divorced (or single) with children, middle-aged divorced with children, middle-aged divorced without dependent children

question

13. Main characteristics of the marketing generations

answer

singles and young couples seem to be more willing to try new products and brands and they are careful, price-conscious shoppers, as children arrive and grow families spending shifts to soft goods and services (education, medical, and personal care), teenagers: spend more on food, expensive clothes, college- they spend about $200 billion a year, empty nesters: people whose children are grown and who are now able to spend their money in other ways-more interested in travel, sports cars bc they have more money to spend, senior citizens: people over 65-more prosperous than ever, all have very different needs

question

6. Factors influencing consumer buying behavior:

answer

economic needs, psychological variables, social influences, purchase situation

question

a. Economic needs

answer

economy of purchase or use, efficiency in operation or use, dependability in use, improvement of earnings, convenience

question

b. Psychological variables:

answer

motivation, perception, earning, attitude, trust, lifestyle

question

c. Social influences

answer

family, social class, reference groups, culture

question

d. Purchase situation:

answer

purchase reason, time, surroundings

question

7. Difference between needs and wants:

answer

need: basic forces that motivate a person to do something. Wants: "needs" that are learned during a persons' life

question

8. Types of needs and hierarchy of needs

answer

Physiological Needs Safety Needs Social Needs Personal Needs

question

Physiological Needs

answer

food, liquid, rest, and sex

question

Safety Needs

answer

solutions, protection, and physical well-being(perhaps involving health, security, and exercise)

question

Social Needs

answer

Social Needs

question

Personal Needs

answer

a better world, accomplishment, fun freedom, and relaxation

question

selective exposure

answer

our eyes and mind seek out and notice only information that interests us

question

selective perception

answer

we screen out or modify ideas, messages, and information that conflict with previously learned attitudes and beliefs

question

selective retention

answer

we remember only what we want to remember

question

learning

answer

change in a person's thought processes caused by prior experience

question

attitude

answer

a person's point of view toward something

question

belief

answer

a person's opinion about something

question

differences between attitude and belief

answer

attitudes tend to be learned attitudes relate to decisions buyers make

question

perception

answer

how we gather and interpret information from the world around us

question

10. What are the dynamics of family purchases?

answer

vary greatly depending on the family and product.

question

11. What is a reference group? Do we have face-to-face contact with all reference groups affecting our behavior?

answer

the people to whom an individual looks when attitudes about particular topics. Some they meet face-to-face, others they just wish to imitate-- ex performers and athletes.

question

What is an opinion leader?

answer

a person who influences others. not necessarily wealthier or more educated.

question

13. What are some aspects of the purchase situation that affect consumer behavior?

answer

the situation in which a purchase is made can influence consumer behavior; marketers must understand these influences in order to develop marketing strategies that enhance the purchase of their products

question

14. What are the steps in the consumer decision process?

answer

NEED ↓ INFORMATION GATHERING/SEARCH ↓ EVALUATION OF ALTERNATIVES ↓ PURCHASE OF PRODUCT/SERVICE ↓ POST PURCHASE EVALUATION

question

extensive problem solving

answer

much effort put into decision making ex. purchasing a car

question

limited problem solving

answer

some effort is required ex. opinion of dvd purchase (sales clerk opinion)

question

routinized response behavior

answer

regularly selecting product with little to no effort. ex- deodorant or shampoo

question

9. How are organizational customers different from consumers?

answer

The quantity, size of orders, relative importance,

question

users

answer

the purchasing managers who are responsible for working with suppliers and arranging for the terms of the sale.

question

buyers

answer

the people who will actually use the product. They may be production workers or support staff.

question

influencers

answer

people whose expertise is used to help determine which products are needed. Influencers are often technical people who help write specifications.

question

deciders

answer

the people in the organization who have the power to select or approve the supplier. Marketers must identify and market to every buying center member. The members of the buying center may change from purchase to purchase.

question

gatekeepers

answer

people in key positions in the organization who control the flow of information. Gatekeepers can include receptionists, secretaries, researchers, and others.

question

new task buying

answer

occurs when a customer organization has a new need and wants a great deal of information. New-task buying often involves: setting product specifications; evaluating sources of supply; and establishing an order routine to follow in the future.

question

straight re buy

answer

is a routine repurchase that uses existing suppliers to fill a standard order.

question

modified re buy

answer

is the in-between process. Some review of the buying process is done but not as much as in a new-task buy.

question

NAICS and segmenting

answer

- North American Industry Classification System (NAICS) codes: groups of firms in similar lines of business. Set of codes that the government of US,CANADA,MEXICO put together to classify businesses depending on what type of activity they're in. keeps statistics based on these codes.

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