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What're the advantages of cross tabulations?

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The simple format permits direct interpretation and an easy means of communicating data to management. Cross tabs offer great flexibility and can be used to summarize questionnaire, observational, and experimental data.

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The marketing manager's controllable factors—product, price, promotion, and place—that can be used to solve a marketing problem.

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marketing mix

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A good, service, or idea to satisfy the consumer's needs

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Product

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What is exchanged for the product.

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Price

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A means of communication between the seller and buyer.

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Promotion

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A means of getting the product to the consumer.

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Place

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that affect a marketing decision, which consist of social, economic, technological, competitive, and regulatory forces.

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environmental forces

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an acronym describing an organization's appraisal of its internal Strengths and Weaknesses and its external Opportunities and Threats.

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SWOT analysis,

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Identify trends in the organization's industry. Analyze the organization's competitors. Assess the organization itself. Research the organization's present and prospective customers.

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What are the four areas of study SWOT covers?

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Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

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market segmentation

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Chances of new-product success are increased by specifying both market and product goals. Based on their market research, Medtronic executives set the following goal: Market the Chinese-produced Champion pacemaker to Asian markets within three years.

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Set marketing and product goals

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he Champion pacemaker will be targeted at cardiologists and heart surgery clinics in India, China, and other Asian countries.

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Select target markets

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Points of difference are those characteristics of a product that make it superior to competitive substitutes. Just as a competitive advantage is a unique strength of an entire organization compared to its competitors, points of difference are unique characteristics of one of its products that make it superior to competitive products it faces in the marketplace. For the Champion pacemaker, the key points of difference are its high quality, long life, reliability, ease of use, and low cost.

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Find points of difference

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The pacemaker will be "positioned" in cardiologists' and patients' minds as a medical device that is high quality and reliable with a long, nine-year life. The name Champion was selected after testing acceptable names among doctors in India, China, Pakistan, Singapore, and Malaysia.

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Position the product

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Find specific efficiencies in distribution with parent-company Unilever's existing ice cream brands.

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Build on a strength

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Recruit experienced managers from other consumer product firms to help stimulate growth.

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Correct a weakness

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Develop new product lines of low-fat, low-carb frozen Greek-style yogurt flavors to respond to changes in consumer tastes.

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Exploit an opportunity

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Focus on less risky international markets, such as Brazil and Argentina.

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Avoid a disaster-laden threat

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Offer a Champion brand heart pacemaker with only those features needed by Asian patients.

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Product strategy

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Manufacture the Champion to control costs so that it can be priced below $1,000 (in U.S. dollars)—an affordable price for Asian markets.

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Price strategy

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Introduce the Champion at medical conventions across Asia to demonstrate its many beneficial features.

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Promotion strategy

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Search out, utilize, and train reputable medical device distributors across Asia to call on cardiologists and medical clinics.

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Place (distribution) strategy

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It is a technique that managers use to quantify performance measures and growth targets to analyze their firms' strategic business units (SBUs) as though they were a collection of separate investments.

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business portfolio analysis

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vertical axis

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market growth rate

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horizontal axis

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relative market share

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are SBUs that generate large amounts of cash, far more than they can use. They have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBUs.

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Cash cows

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with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows.

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Stars

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SBUs with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. The name implies management's dilemma for these SBUs: choosing the right ones to invest in and phasing out the rest.

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Question marks

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SBUs with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they may not become real winners for the organization. Dropping SBUs that are dogs may be required if they consume more cash than they generate, except when relationships with other SBUs, competitive considerations, or potential strategic alliances exist.

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Dogs

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A technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products

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diversification analysis

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is a marketing strategy to increase sales of current products in current markets, such as selling more Ben & Jerry's Bonnaroo Buzz Fair Trade-sourced ice cream to U.S. consumers. There is no change in either the basic product line or the markets served. Increased sales are generated by selling either more ice cream (through better promotion or distribution) or the same amount of ice cream at a higher price to its current customers.

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Market penetration

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is a marketing strategy to sell current products to new markets. For Ben & Jerry's, Brazil is an attractive new market. There is good news and bad news for this strategy: As household incomes of Brazilians increase, consumers can buy more ice cream; however, the Ben & Jerry's brand may be unknown to Brazilian consumers.

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Market development

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is a marketing strategy of selling new products to current markets. Ben & Jerry's could leverage its brand by selling children's clothing in the United States. This strategy is risky because Americans may not see the company's expertise in ice cream as extending to children's clothing.

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Product development

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is a marketing strategy of developing new products and selling them in new markets. This is a potentially high-risk strategy for Ben & Jerry's if it decides to try to sell Ben & Jerry's branded clothing in Brazil. Why? Because the firm has neither previous production nor marketing experience from which to draw in marketing clothing to Brazilian consumers.

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Diversification

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The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

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environmental scanning

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The demographic characteristics of the population and its culture.

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social forces

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Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

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Demographics

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The U.S. Census Bureau estimates that the current population of the United States is

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316 million people

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If current trends in life expectancy, birthrates, and immigration continue, by 2030 the U.S. population will exceed

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358 million people

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Includes the generation of 76 million children born between 1946 and 1964.

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baby boomers

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Includes the 50 million people born between 1965 and 1976.

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Generation X

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Includes the 72 million Americans born between 1977 and 1994.

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Generation Y

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formed by merging two previously separated units into a single household.

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blended family

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has at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration.

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metropolitan statistical area

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has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration.

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micropolitan statistical area

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adjacent metropolitan statistical areas and micropolitan statistical areas may be grouped

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combined statistical areas

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Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

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multicultural marketing

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The set of values, ideas, and attitudes that are learned and shared among the members of a group.

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culture

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The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.

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value consciousness

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The alternative firms that could provide a product to satisfy a specific market's needs.

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competition

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in which there are many sellers and they each have a similar product. Companies that deal in commodities common to agribusiness (for example, wheat, rice, and grain) often are in a pure competition position in which distribution (in the sense of shipping products) is important but other elements of marketing have little impact.

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pure competition

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many sellers compete with substitutable products within a price range. For example, if the price of coffee rises too much, consumers may switch to tea. Coupons or sales are frequently used marketing tactics.

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monopolistic competition

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a common industry structure, occurs when a few companies control the majority of industry sales. The wireless telephone industry, for example, is dominated by four carriers that serve more than 90 percent of the U.S. market. Verizon, AT&T, Sprint, and T-Mobile have 117, 107, 55, and 34 million subscribers, respectively.

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Oligopoly

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occurs when only one firm sells the product. Monopolies are common for producers of products and services considered essential to a community: water, electricity, and cable service.

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pure monopoly

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Business practices or conditions that make it difficult for new firms to enter the market.

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barriers to entry

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A competitive analysis must consider the power of buyers and suppliers. Powerful buyers exist when they are few in number, there are low switching costs, or the product represents a significant share of the buyer's total costs. This last factor leads the buyer to exert significant pressure for price competition. A supplier gains power when the product is critical to the buyer and when it has built up the switching costs.

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Power of Buyers and Suppliers

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Competitive pressures among existing firms depend on the rate of industry growth. In slow-growth settings, competition is more heated for any possible gains in market share. High fixed costs also create competitive pressures for firms to fill production capacity. For example, airlines offer discounts for making early reservations and charge penalties for changes or cancellations in an effort to fill seats, which represent a high fixed cost.

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Existing Competitors and Substitutes

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Restrictions state and federal laws place on a business with regard to the conduct of its activities.

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Regulation

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Is the process of defining a market problem and opportunity, systematically collecting and analyzing information and recommending actions.

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Marketing Research

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Set Research objectives. Identify possible marketing actions

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Define the problem

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Specify constraints Identify Data needed for marketing actions. Determine how to collect data.

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Developing the Research Plan

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Obtain secondary data Obtain Primary Data

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Collect relevant infomation

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Analyze the data Present the findings

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Develop finding

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Make action recommendations Implement actions recommendations Evaluate Results

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Take marketing actions

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Provides ideas about a vague problem.

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Exploratory Research

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Generally involves trying to find the frequency with which something occurs or the extent of a relationship between two factors.

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Descriptive Research

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tries to determine the extent to which the change in one factor changes another one.

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Casual Research

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Criteria or standards used in evaluation proposed solutions to the problems

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Measure of Success

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In a Decision are the restrictions placed on potential solution to a problem.

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Constratints

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How to determine collected data

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Concepts and Methods

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Approaches that can be used to collect data to solve all or part of the problem.

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Methods

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What're the special methods used for marketing?

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Sampling and Statistical inference

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selecting a group of distributors,customers,or prospects, asking them questions, treating their answers as typical of all those in whom they are interested.

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Sampling

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to generalize the results from the sample to much lager groups of distributors, customers, or propects to help decide on marketing actions

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Statistical inference

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the facts and figures related to the project, are divided into two main parts: secondary data and primary data.

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Data

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are facts and figures that have already been recorded prior to the project at hand.

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Secondary data

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are facts and figures that are newly collected for the project.

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Primary data

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a company generally offer the most easily accessible marketing information. These internal sources of secondary data may be divided into two related parts: (1) marketing inputs and (2) marketing outcomes.

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internal records

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relate to the effort expended to make sales. These range from sales and advertising budgets and expenditures to salespeople's call reports, which describe the number of sales calls per day, who was visited, and what was discussed

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Marketing input data

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relate to the results of the marketing efforts. These involve accounting records on shipments and include sales and repeat sales, often broken down by sales representative, industry, and geographic region. In addition, e-mails, phone calls, and letters from customers can reveal both complaints and what is working well.

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Marketing outcome data

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U.S. Census Bureau publishes a variety of useful reports. Best known is the Census 2010, which is the most recent count of the U.S. population that occurs every 10 years. Recently, the Census Bureau began collecting data annually from a smaller number of people through the American Community Survey. trade associations, universities, and business periodicals provide detailed data of value to market researchers and planners.

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Secondary Data: External

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Advantages of Secondary Data

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the tremendous time savings because the data have already been collected and published or exist internally and (2) the low cost, such as free or inexpensive Census reports. Furthermore, a greater level of detail is often available through secondary data, especially U.S. Census Bureau data.

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Disadvantages of Secondary Data

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First, the secondary data may be out of date, especially if they are U.S. Census data collected only every 5 or 10 years. Second, the definitions or categories might not be quite right for a researcher's project. For example, the age groupings or product categories might be wrong for the project. Also, because the data have been collected for another purpose, they may not be specific enough for the project. In such cases, it may be necessary to collect primary data.

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Primary Data:

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Watching People

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Facts and figures obtained by watching, either mechanically or in person, how people actually behave is the way marketing researchers

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observational data

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observational data collected by a "people meter." The device measures what channel and program is tuned in and who is watching. The people meter (1) is a box that is attached to TV sets, VCRs, DVRs (digital video recorders), cable boxes, and satellite dishes in about 20,000 households across the country;12 (2) has a remote that operates the meter when a viewer begins and finishes watching a TV program; and (3) stores and then transmits the viewing information each night to Nielsen. Data are also collected on TV viewing using less sophisticated meters or TV diaries (a paper-pencil measurement system).

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Mechanical Methods

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mystery shopper is an example of this.

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Personal Methods

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Companies pay mystery shoppers to check on the quality and pricing of their products and the integrity of and customer service provided by their employees. Jennifer gets paid to travel to exotic hotels, eat at restaurants, play golf, test-drive new cars, shop for clothes, and play arcade games. But her role posing as a customer gives her client unique marketing research information that can be obtained in no other way.

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mystery shopper

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is a specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their "natural use environment," such as in their home or car.

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Ethnographic research

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Global brand expert Martin Lindstrom believes that most traditional marketing research—like focus groups and surveys—is wasted because consumers' feelings toward products and brands reside deep within the subconscious part of their brains.

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Neuromarketing Methods

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How many dozens of times have you filled out some kind of a questionnaire? Maybe a short survey at school or a telephone or e-mail survey to see if you are pleased with the service you received. Asking consumers questions and recording their answers is the second principal way of gathering information.

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Primary Data: Asking People

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which are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.

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questionnaire data

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We can divide this primary data collection task into

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(1) idea generation methods and (2) idea evaluation methods, although they sometimes overlap and each has a number of special techniques.

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involves a single researcher asking questions of one respondent. This approach has many advantages, such as being able to probe for additional ideas using follow-up questions to a respondent's initial answers. However, this method is very expensive.

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Individual interview

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which researchers ask lengthy, free-flowing kinds of questions to probe for underlying ideas and feelings. These depth interviews showed consumers (1) didn't think it contained enough meat and (2) didn't want the hassle of cooking in two different pots.

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depth interview

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are informal sessions of 6 to 10 past, present, or prospective customers in which a discussion leader, or moderator, asks for opinions about the firm's products and those of its competitors, including how they use these products and special needs they have that these products don't address.

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Focus groups

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enable the interviewer to be flexible in asking probing questions or getting reactions to visual materials but are very costly.

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Personal interview surveys

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usually biased because those most likely to respond have had especially positive or negative experiences with the product or brand.

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Mail surveys

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allow flexibility, unhappy respondents may hang up on the interviewer, even with the efficiency of computer-assisted telephone interviewing (CATI).

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telephone interviews

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to collect primary data. The reason: Most consumers have an Internet connection and an e-mail account. Marketers can embed a survey in an e-mail sent to targeted respondents. When they open the e-mail, consumers can either see the survey or click on a link to access it from a website. Marketers can also ask consumers to complete a "pop up" survey in a separate browser window when they access an organization's website.

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online surveys

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advantages of online surveys

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cost is relatively minimal and the turnaround time from data collection to report presentation is much quicker than the traditional methods discussed earlier.

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online surveys have serious drawbacks

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Some consumers may view e-mail surveys as "junk" or "spam" and may either choose to not receive them (if they have a "spam blocker") or purposely or inadvertently delete them, unopened. For Internet surveys, some consumers have a "pop-up blocker" that prohibits a browser from opening a separate window that contains the survey; thus, they may not be able to participate in the research. For both e-mail and Internet surveys, consumers can complete the survey multiple times, creating a significant bias in the results.

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which allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher. This information is invaluable to marketers because it captures the "voice" of respondents, which is useful in understanding consumer behavior, identifying product benefits, or developing advertising messages.

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open-ended question

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require respondents to select one or more response options from a set of predetermined choices.

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closed-end or fixed alternative questions

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the simplest form of a fixed alternative question that allows only a "yes" or "no" response.

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dichotomous question

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A fixed alternative question with three or more choices

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scale

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a five-point scale in which the opposite ends have one- or two-word adjectives that have opposite meanings.

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semantic differential scale

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in which the respondent indicates the extent to which he or she agrees or disagrees with a statement.

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Likert scale

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The high cost of using personal interviews in homes,which are personal interviews of consumers visiting shopping centers. These face-to-face interviews reduce the cost of personal visits to consumers in their homes while providing the flexibility to show respondents visual cues such as ads or actual product samples.

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mall intercept interviews

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disadvantage of mall intercept

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interviews is that the people interviewed may not be representative of the consumers targeted, giving a biased result.

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Primary Data: Other Sources

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(1) social media, (2) panels and experiments, (3) information technology, and (4) data mining.

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Facebook, Twitter, and other social media are revolutionizing the way today's marketing research is done. In developing a new potato chip flavor, Frito-Lay substituted Facebook research for its usual focus groups. Visitors to its Facebook Page were polled, allowing them to suggest new flavors, three of which appeared in 2013. All they had to do was click an "I'd Eat That" button to show their preferences. And Estée Lauder asked social media users to vote on which discontinued shades to bring back.

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Social Media

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is a sample of consumers or stores from which researchers take a series of measurements.

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panel

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involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect. The interest is in whether changing one of the independent variables (a cause) will change the behavior of the dependent variable that is studied (the result).

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experiment

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are often one or more of the marketing mix elements, such as a product's features, price, or promotion (like advertising messages or coupons). The ideal dependent variable usually is a change in the purchases (incremental unit or dollar sales) of individuals, households, or organizations.

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marketing drivers

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involves operating computer networks that can store and process data. Today, information technology can extract hidden information from large databases, such as those containing retail sales collected through barcode scanners at checkout counters and households' product purchases and TV viewing behavior.

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Information technology

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ask "what if" questions to determine how hypothetical changes in product

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sensitivity analysis

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the factors that influence the buying decisions of a household or organization—can affect sales.

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product or brand drivers

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is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

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data mining

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What are the advantages of primary data?

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of being more flexible and more specific to the problem being studied.

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What are the main disadvantages of primary data?

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are usually far more costly and time-consuming to collect than secondary data.

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is a method of presenting and analyzing data involving two or more variables to discover relationships in the data.

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cross tabulation, or cross tab

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What're the advantages of cross tabulations?

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The simple format permits direct interpretation and an easy means of communicating data to management. Cross tabs offer great flexibility and can be used to summarize questionnaire, observational, and experimental data.

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What're the Disadvantages of Cross Tabulations?

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they can be misleading if the percentages are based on too few observations. Also, cross tabulations can hide some relationships because each cross tab typically shows only two or three variables

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Schwan Food Company produces 3 million frozen pizzas a day under brand names that include Tony's and Red Baron. Let's see how Teré Carral, the marketing manager for the Tony's brand, might address a market segment question in early 2013. We will use hypothetical data to protect Tony's proprietary information.

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Analyze the Data

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Findings should be clear and understandable from the way the data are presented. Managers are responsible for actions. Often it means delivering the results in clear pictures and, if possible, in a single page.

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Present the Findings

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This shows the annual growth

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Annual Sales

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This involves monitoring the marketplace to determine if action is necessary in the future.

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Evaluating the decision itself

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Was the marketing research and analysis used to develop the recommendations effective? Was it flawed? Could it be improved for similar situations in the future?

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Evaluating the decision process used

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(1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior.

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purchase decision process

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the initial step in the purchase decision, is perceiving a difference between a person's ideal and actual situations big enough to trigger a decision.2 This can be as simple as finding an empty milk carton in the refrigerator; noting, as a first-year college student, that your high school clothes are not in the style that other students are wearing; or realizing that your notebook computer may not be working properly.

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Problem recognition

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First, you may scan your memory for previous experiences with products or brands.

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internal search

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This is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.

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external search

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primary sources of external information

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(1) personal sources, such as relatives and friends whom the consumer trusts; (2) public sources, including various product-rating organizations such as Consumer Reports, government agencies, and TV "consumer programs"; and (3) marketer-dominated sources, such as information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores.

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relatives and friends whom the consumer trusts

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personal sources

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including various product-rating organizations such as Consumer Reports, government agencies, and TV "consumer programs"

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public sources

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such as information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores.

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marketer-dominated sources

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Alternative Evaluation: Assessing Value

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(1) suggesting criteria to use for the purchase, (2) yielding brand names that might meet the criteria, and (3) developing consumer value perceptions.

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which represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands.6 Firms try to identify and capitalize on both types of criteria to create the best value for the money paid by you and other consumers. These criteria are often displayed in advertisements.

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evaluative criteria

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the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.

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consideration set

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Purchase Decision: Buying Value

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Having examined the alternatives in the consideration set, you are almost ready to make a purchase decision. Two choices remain: (1) from whom to buy and (2) when to buy. For a product like a smartphone, the information search process probably involved visiting retail stores, seeing different brands advertised on television and newspapers, and viewing a smartphone on a seller's website.

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Postpurchase Behavior: Realizing Value

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After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied. If the consumer is dissatisfied, marketers must determine whether the product was deficient or consumer expectations were too high. Product deficiency may require a design change. If expectations are too high, a company's advertising or the salesperson may have oversold the product's features and benefits.

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The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

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cognitive dissonance

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The personal, social, and economic significance of the purchase to the consumer.

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involvement

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High-involvement purchase occasions typically have at least one of three characteristics:

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The item to be purchased (1) is expensive, (2) can have serious personal consequences, or (3) could reflect on one's social image.

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each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted to the search for external information and the identification and evaluation of alternatives. Several brands are in the consideration set, and these are evaluated on many attributes.

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Extended Problem Solving

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consumers typically seek some information or rely on a friend to help them evaluate alternatives. Several brands might be evaluated using a moderate number of attributes. Limited problem solving is appropriate for purchase situations that do not merit a great deal of time or effort, such as choosing a toaster or a restaurant for lunch.

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Limited Problem Solving

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For products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. The purchase process for such items is virtually a habit and typifies low-involvement decision making. typically the case for low-priced, frequently purchased products.

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Routine Problem Solving

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Low and high consumer involvement have important implications for marketing strategy.

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Consumer Involvement and Marketing Strategy

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company markets a low-involvement product and its brand is a market leader

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(1) maintaining product quality, (2) avoiding stockout situations so that buyers don't substitute a competing brand, and (3) repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.

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situational influences

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have an impact on the purchase decision process:(1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states.

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is the energizing force that stimulates behavior to satisfy a need.

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Motivation

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are basic to survival and must be satisfied first.

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Physiological needs

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involve self-preservation as well as physical and financial well-being.

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Safety needs

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are concerned with love and friendship

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Social needs

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include the need for achievement, status, prestige, and self-respect.

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Personal needs

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involve personal fulfillment

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Self-actualization

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refers to a person's consistent behaviors or responses to recurring situations.

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Personality

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which is the way people see themselves and the way they believe others see them.

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self-concept

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the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

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perception

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Because the average consumer operates in a complex environment, the human brain attempts to organize and interpret information with a process a filtering of exposure, comprehension, and retention

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selective perception

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occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them.

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Selective exposure

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involves interpreting information so that it is consistent with your attitudes and beliefs. A marketer's failure to understand this can have disastrous results.For example, Toro introduced a small, lightweight snowblower called the Snow Pup. Even though the product worked, sales failed to meet expectations. Why? Toro later found out that consumers perceived the name to mean that Snow Pup was a toy or too light to do any serious snow removal. When the product was renamed Snow Master, sales increased sharply.18

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Selective comprehension

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that consumers do not remember all the information they see, read, or hear, even minutes after exposure to it. This affects the internal and external information search stage of the purchase decision process. This is why furniture and automobile retailers often give consumers product brochures to take home with them when they leave the showroom.

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Selective retention

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means that you see or hear messages without being aware of them. The presence and effect of subliminal perception on behavior is a hotly debated issue, with more popular appeal than scientific support.

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Subliminal perception

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The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

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Perceived Risk

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refers to those behaviors that result from (1) repeated experience and (2) reasoning.

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Learning

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is the process of developing automatic responses to a situation built up through repeated exposure to it.

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Behavioral learning

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s a need that moves an individual to action. Drives, such as hunger, might be represented by motives.

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A drive

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is the action taken by a consumer to satisfy the drive.

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response

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is the reward

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Reinforcement

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is a stimulus or symbol perceived by consumers.

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cue

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What're the 4 types of Variables

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drive, cue, response, and reinforcement

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occurs when a response elicited by one stimulus (cue) is generalized to another stimulus. Using the same brand name for different products is an application of this concept, such as Tylenol Cold & Flu and Tylenol P.M.

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Stimulus generalization

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refers to a person's ability to perceive differences in stimuli. Consumers' tendency to perceive all light beers as being alike led to Budweiser Light commercials that distinguished between many types of "light beers" and Bud Light.

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Stimulus discrimination

question

Consumers also learn through thinking, reasoning, and mental problem solving without direct experience. involves making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting your own accordingly. Firms also influence this type of learning. Through repetition in advertising, messages such as "Feel Better, Tylenol 8-Hour" link a brand (Tylenol 8-Hour) and an idea (pain reliever) by showing someone using the brand and finding relief.

answer

cognitive learning

question

which is a favorable attitude toward and consistent purchase of a single brand over time. Brand loyalty results from the positive reinforcement of previous actions. A consumer reduces risk and saves time by consistently purchasing the same brand of shampoo and has favorable results—healthy, shining hair. There is evidence of brand loyalty in many commonly purchased products in the United States and the global marketplace. However, the incidence of brand loyalty appears to be declining in North America, Western Europe, and Japan.

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brand loyalty

question

"learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way,are shaped by our values and beliefs, which are learned. Values vary by level of specificity.

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attitude

question

A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people

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Beliefs

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Attitude Change

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1)Changing beliefs about the extent to which a brand has certain attributes. 2)Changing the perceived importance of attributes. 3)Adding new attributes to the product.

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A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

answer

lifestyle

question

provides insights into consumer needs and wants. Lifestyle analysis has proven useful in segmenting and targeting consumers for new and existing products and services

answer

psychographics

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(1) their primary motivation for buying and having certain products and services and (2) their resources.

answer

VALS

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Consumers motivated by ideals are guided by knowledge and principles.(Thinkers and Believers)

answer

Ideals-motivated groups

question

are mature, reflective, and well-educated people who value order, knowledge, and responsibility.They are practical consumers and deliberate information-seekers who value durability and functionality in products over styling and newness.

answer

Thinkers

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with fewer resources, are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation. They choose familiar products and brands, favor American-made products, and are generally brand loyal.

answer

Believers

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Consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. Achievers Strivers

answer

Achievement-motivated groups.

question

have a busy, goal-directed lifestyle and a deep commitment to career and family. Image is important to them. They favor established, prestige products and services and are interested in time-saving devices given their hectic schedules.

answer

Achievers

question

are trendy, fun-loving, and less self-confident than Achievers. They also have lower levels of education and household income. Money defines success for them. They favor stylish products and are as impulsive as their financial circumstances permit.

answer

Strivers

question

Consumers motivated by self-expression desire social or physical activity, variety, and risk. Experiencers, Makers

answer

Self-expression-motivated groups

question

with fewer resources, express themselves and experience the world by working on it—raising children or fixing a car. They are practical people who have constructive skills, value self-sufficiency, and are unimpressed by material possessions except those with a practical or functional purpose.

answer

Makers

question

are young, enthusiastic, and impulsive consumers who become excited about new possibilities but are equally quick to cool. They savor the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Much of their income is spent on fashion items, entertainment, and socializing and particularly on looking good and having the latest things.

answer

Experiencers

question

Innovators, Survivors

answer

High- and low-resource groups

question

are successful, sophisticated, take-charge people with high self-esteem and abundant resources of all kinds.Image is important to them, not as evidence of power or status, but as an expression of cultivated tastes, independence, and character. They are receptive to new ideas and technologies. Their lives are characterized by variety.

answer

Innovators

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with the least resources of any segment, focus on meeting basic needs (safety and security) rather than fulfilling desires. They represent a modest market for most products and services and are loyal to favorite brands, especially if they can be purchased at a discount.

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Survivors

question

A consumer's purchases are often influenced by the views, opinions, or behaviors of others. Two aspects of personal influence are very important to marketing: opinion leadership and word-of-mouth activity.

answer

Personal Influence

question

Individuals who exert direct or indirect social influence over others are considered to be knowledgeable about or users of particular products and services, so their opinions influence others' choices.25 Opinion leadership is widespread in the purchase of cars and trucks, entertainment, clothing and accessories, club membership, consumer electronics, vacation destinations, food, and financial investments. A study by Popular Mechanics magazine identified 18 million opinion leaders who influence the purchases of some 85 million consumers for do-it-yourself products.

answer

Opinion leaders

question

The influencing of people during conversations is the most powerful and authentic information source for consumers because it typically involves friends viewed as trustworthy. About 75 percent of all consumer conversations about brands happen face-to-face, 15 percent happen over the phone, and 10 percent happen online.26 According to a recent study, 67 percent of U.S. consumer product sales are directly based on word-of-mouth activity among friends, family, and colleagues.

answer

word of mouth

question

are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups affect consumer purchases because they influence the information, attitudes, and aspiration levels that help set a consumer's standards

answer

Reference groups

question

a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use. A consumer who is a member of a brand community thinks about brand names (e.g., Harley-Davidson), the product category (e.g., motorcycles), other customers who use the brand (e.g., HOG members), and the marketer that makes and promotes the brand.

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brand community

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is one to which a person actually belongs, including fraternities and sororities and alumni associations. Such groups are easily identifiable and are targeted by firms selling insurance, insignia products, and charter vacations

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associative group

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is one that a person wishes to be a member of or wishes to be identified with, such as a professional society or sports team. Firms frequently rely on spokespeople or settings associated with their target market's aspiration group in their advertising.

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aspiration group

question

is one that a person wishes to maintain a distance from because of differences in values or behaviors. Firms often avoid dissociative reference groups in their marketing. For example, retailer Abercrombie & Fitch offered to pay cast members of the controversial TV reality show Jersey Shore to not wear its clothing. "We understand that the show is for entertainment purposes, but believe this association is contrary to the aspirational nature of our brand, and may be distressing to many of our fans," the retailer stated.

answer

dissociative group

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The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers

answer

consumer socialization

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concept describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors

answer

family life cycle

question

may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. A person's occupation, source of income (not level of income), and education determine his or her social class. Generally speaking, three major social class categories exist—upper, middle, and lower—with subcategories within each. This structure has been observed in the United States, Great Britain, Western Europe, and Latin America

answer

Social class

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Subgroups within the larger, or national, culture with unique values, ideas, and attitudes

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subcultures

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Hispanics represent the largest racial/ethnic subculture in the United States in terms of population and spending power. About 50 percent of Hispanics in the United States are immigrants, and the majority are under the age of 29. One-third of Hispanics are younger than 18. Research on Hispanic buying practices has uncovered several consistent patterns:37 Hispanics are quality and brand conscious. They are willing to pay a premium price for premium quality and are often brand loyal Hispanics prefer buying American-made products, especially those offered by firms that cater to Hispanic needs. Hispanic buying preferences are strongly influenced by family and peers. Hispanics consider advertising a credible product information source, and U.S. firms spend about $8 billion annually on advertising to Hispanics. Convenience is not an important product attribute to Hispanic homemakers with respect to food preparation or consumption, nor is low caffeine in coffee and soft drinks, low fat in dairy products, or low cholesterol in packaged foods

answer

Hispanic Buying Patterns

question

What're the Disadvantages of Cross Tabulations?

answer

they can be misleading if the percentages are based on too few observations. Also, cross tabulations can hide some relationships because each cross tab typically shows only two or three variables

question

Schwan Food Company produces 3 million frozen pizzas a day under brand names that include Tony's and Red Baron. Let's see how Teré Carral, the marketing manager for the Tony's brand, might address a market segment question in early 2013. We will use hypothetical data to protect Tony's proprietary information.

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Analyze the Data

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Findings should be clear and understandable from the way the data are presented. Managers are responsible for actions. Often it means delivering the results in clear pictures and, if possible, in a single page.

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Present the Findings

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This shows the annual growth

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Annual Sales

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This involves monitoring the marketplace to determine if action is necessary in the future.

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Evaluating the decision itself

question

Was the marketing research and analysis used to develop the recommendations effective? Was it flawed? Could it be improved for similar situations in the future?

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Evaluating the decision process used

question

(1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior.

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purchase decision process

question

the initial step in the purchase decision, is perceiving a difference between a person's ideal and actual situations big enough to trigger a decision.2 This can be as simple as finding an empty milk carton in the refrigerator; noting, as a first-year college student, that your high school clothes are not in the style that other students are wearing; or realizing that your notebook computer may not be working properly.

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Problem recognition

question

First, you may scan your memory for previous experiences with products or brands.

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internal search

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This is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.

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external search

question

primary sources of external information

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(1) personal sources, such as relatives and friends whom the consumer trusts; (2) public sources, including various product-rating organizations such as Consumer Reports, government agencies, and TV "consumer programs"; and (3) marketer-dominated sources, such as information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores.

question

relatives and friends whom the consumer trusts

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personal sources

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including various product-rating organizations such as Consumer Reports, government agencies, and TV "consumer programs"

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public sources

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such as information from sellers including advertising, company websites, salespeople, and point-of-purchase displays in stores.

answer

marketer-dominated sources

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Alternative Evaluation: Assessing Value

answer

(1) suggesting criteria to use for the purchase, (2) yielding brand names that might meet the criteria, and (3) developing consumer value perceptions.

question

which represent both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands.6 Firms try to identify and capitalize on both types of criteria to create the best value for the money paid by you and other consumers. These criteria are often displayed in advertisements.

answer

evaluative criteria

question

the group of brands a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.

answer

consideration set

question

Purchase Decision: Buying Value

answer

Having examined the alternatives in the consideration set, you are almost ready to make a purchase decision. Two choices remain: (1) from whom to buy and (2) when to buy. For a product like a smartphone, the information search process probably involved visiting retail stores, seeing different brands advertised on television and newspapers, and viewing a smartphone on a seller's website.

question

Postpurchase Behavior: Realizing Value

answer

After buying a product, the consumer compares it with his or her expectations and is either satisfied or dissatisfied. If the consumer is dissatisfied, marketers must determine whether the product was deficient or consumer expectations were too high. Product deficiency may require a design change. If expectations are too high, a company's advertising or the salesperson may have oversold the product's features and benefits.

question

The feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

answer

cognitive dissonance

question

The personal, social, and economic significance of the purchase to the consumer.

answer

involvement

question

High-involvement purchase occasions typically have at least one of three characteristics:

answer

The item to be purchased (1) is expensive, (2) can have serious personal consequences, or (3) could reflect on one's social image.

question

each of the five stages of the consumer purchase decision process is used and considerable time and effort are devoted to the search for external information and the identification and evaluation of alternatives. Several brands are in the consideration set, and these are evaluated on many attributes.

answer

Extended Problem Solving

question

consumers typically seek some information or rely on a friend to help them evaluate alternatives. Several brands might be evaluated using a moderate number of attributes. Limited problem solving is appropriate for purchase situations that do not merit a great deal of time or effort, such as choosing a toaster or a restaurant for lunch.

answer

Limited Problem Solving

question

For products such as table salt and milk, consumers recognize a problem, make a decision, and spend little effort seeking external information and evaluating alternatives. The purchase process for such items is virtually a habit and typifies low-involvement decision making. typically the case for low-priced, frequently purchased products.

answer

Routine Problem Solving

question

Low and high consumer involvement have important implications for marketing strategy.

answer

Consumer Involvement and Marketing Strategy

question

company markets a low-involvement product and its brand is a market leader

answer

(1) maintaining product quality, (2) avoiding stockout situations so that buyers don't substitute a competing brand, and (3) repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice.

question

situational influences

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have an impact on the purchase decision process:(1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states.

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is the energizing force that stimulates behavior to satisfy a need.

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Motivation

question

are basic to survival and must be satisfied first.

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Physiological needs

question

involve self-preservation as well as physical and financial well-being.

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Safety needs

question

are concerned with love and friendship

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Social needs

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include the need for achievement, status, prestige, and self-respect.

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Personal needs

question

involve personal fulfillment

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Self-actualization

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refers to a person's consistent behaviors or responses to recurring situations.

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Personality

question

which is the way people see themselves and the way they believe others see them.

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self-concept

question

the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

answer

perception

question

Because the average consumer operates in a complex environment, the human brain attempts to organize and interpret information with a process a filtering of exposure, comprehension, and retention

answer

selective perception

question

occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent with them.

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Selective exposure

question

involves interpreting information so that it is consistent with your attitudes and beliefs. A marketer's failure to understand this can have disastrous results.For example, Toro introduced a small, lightweight snowblower called the Snow Pup. Even though the product worked, sales failed to meet expectations. Why? Toro later found out that consumers perceived the name to mean that Snow Pup was a toy or too light to do any serious snow removal. When the product was renamed Snow Master, sales increased sharply.18

answer

Selective comprehension

question

that consumers do not remember all the information they see, read, or hear, even minutes after exposure to it. This affects the internal and external information search stage of the purchase decision process. This is why furniture and automobile retailers often give consumers product brochures to take home with them when they leave the showroom.

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Selective retention

question

means that you see or hear messages without being aware of them. The presence and effect of subliminal perception on behavior is a hotly debated issue, with more popular appeal than scientific support.

answer

Subliminal perception

question

The anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences.

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Perceived Risk

question

refers to those behaviors that result from (1) repeated experience and (2) reasoning.

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Learning

question

is the process of developing automatic responses to a situation built up through repeated exposure to it.

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Behavioral learning

question

s a need that moves an individual to action. Drives, such as hunger, might be represented by motives.

answer

A drive

question

is the action taken by a consumer to satisfy the drive.

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response

question

is the reward

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Reinforcement

question

is a stimulus or symbol perceived by consumers.

answer

cue

question

What're the 4 types of Variables

answer

drive, cue, response, and reinforcement

question

occurs when a response elicited by one stimulus (cue) is generalized to another stimulus. Using the same brand name for different products is an application of this concept, such as Tylenol Cold & Flu and Tylenol P.M.

answer

Stimulus generalization

question

refers to a person's ability to perceive differences in stimuli. Consumers' tendency to perceive all light beers as being alike led to Budweiser Light commercials that distinguished between many types of "light beers" and Bud Light.

answer

Stimulus discrimination

question

Consumers also learn through thinking, reasoning, and mental problem solving without direct experience. involves making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting your own accordingly. Firms also influence this type of learning. Through repetition in advertising, messages such as "Feel Better, Tylenol 8-Hour" link a brand (Tylenol 8-Hour) and an idea (pain reliever) by showing someone using the brand and finding relief.

answer

cognitive learning

question

which is a favorable attitude toward and consistent purchase of a single brand over time. Brand loyalty results from the positive reinforcement of previous actions. A consumer reduces risk and saves time by consistently purchasing the same brand of shampoo and has favorable results—healthy, shining hair. There is evidence of brand loyalty in many commonly purchased products in the United States and the global marketplace. However, the incidence of brand loyalty appears to be declining in North America, Western Europe, and Japan.

answer

brand loyalty

question

"learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way,are shaped by our values and beliefs, which are learned. Values vary by level of specificity.

answer

attitude

question

A consumer's subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people

answer

Beliefs

question

Attitude Change

answer

1)Changing beliefs about the extent to which a brand has certain attributes. 2)Changing the perceived importance of attributes. 3)Adding new attributes to the product.

question

A mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

answer

lifestyle

question

provides insights into consumer needs and wants. Lifestyle analysis has proven useful in segmenting and targeting consumers for new and existing products and services

answer

psychographics

question

(1) their primary motivation for buying and having certain products and services and (2) their resources.

answer

VALS

question

Consumers motivated by ideals are guided by knowledge and principles.(Thinkers and Believers)

answer

Ideals-motivated groups

question

are mature, reflective, and well-educated people who value order, knowledge, and responsibility.They are practical consumers and deliberate information-seekers who value durability and functionality in products over styling and newness.

answer

Thinkers

question

with fewer resources, are conservative, conventional people with concrete beliefs based on traditional, established codes: family, religion, community, and the nation. They choose familiar products and brands, favor American-made products, and are generally brand loyal.

answer

Believers

question

Consumers motivated by achievement look for products and services that demonstrate success to their peers or to a peer group they aspire to. Achievers Strivers

answer

Achievement-motivated groups.

question

have a busy, goal-directed lifestyle and a deep commitment to career and family. Image is important to them. They favor established, prestige products and services and are interested in time-saving devices given their hectic schedules.

answer

Achievers

question

are trendy, fun-loving, and less self-confident than Achievers. They also have lower levels of education and household income. Money defines success for them. They favor stylish products and are as impulsive as their financial circumstances permit.

answer

Strivers

question

Consumers motivated by self-expression desire social or physical activity, variety, and risk. Experiencers, Makers

answer

Self-expression-motivated groups

question

with fewer resources, express themselves and experience the world by working on it—raising children or fixing a car. They are practical people who have constructive skills, value self-sufficiency, and are unimpressed by material possessions except those with a practical or functional purpose.

answer

Makers

question

are young, enthusiastic, and impulsive consumers who become excited about new possibilities but are equally quick to cool. They savor the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Much of their income is spent on fashion items, entertainment, and socializing and particularly on looking good and having the latest things.

answer

Experiencers

question

Innovators, Survivors

answer

High- and low-resource groups

question

are successful, sophisticated, take-charge people with high self-esteem and abundant resources of all kinds.Image is important to them, not as evidence of power or status, but as an expression of cultivated tastes, independence, and character. They are receptive to new ideas and technologies. Their lives are characterized by variety.

answer

Innovators

question

with the least resources of any segment, focus on meeting basic needs (safety and security) rather than fulfilling desires. They represent a modest market for most products and services and are loyal to favorite brands, especially if they can be purchased at a discount.

answer

Survivors

question

A consumer's purchases are often influenced by the views, opinions, or behaviors of others. Two aspects of personal influence are very important to marketing: opinion leadership and word-of-mouth activity.

answer

Personal Influence

question

Individuals who exert direct or indirect social influence over others are considered to be knowledgeable about or users of particular products and services, so their opinions influence others' choices.25 Opinion leadership is widespread in the purchase of cars and trucks, entertainment, clothing and accessories, club membership, consumer electronics, vacation destinations, food, and financial investments. A study by Popular Mechanics magazine identified 18 million opinion leaders who influence the purchases of some 85 million consumers for do-it-yourself products.

answer

Opinion leaders

question

The influencing of people during conversations is the most powerful and authentic information source for consumers because it typically involves friends viewed as trustworthy. About 75 percent of all consumer conversations about brands happen face-to-face, 15 percent happen over the phone, and 10 percent happen online.26 According to a recent study, 67 percent of U.S. consumer product sales are directly based on word-of-mouth activity among friends, family, and colleagues.

answer

word of mouth

question

are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups affect consumer purchases because they influence the information, attitudes, and aspiration levels that help set a consumer's standards

answer

Reference groups

question

a specialized group of consumers with a structured set of relationships involving a particular brand, fellow customers of that brand, and the product in use. A consumer who is a member of a brand community thinks about brand names (e.g., Harley-Davidson), the product category (e.g., motorcycles), other customers who use the brand (e.g., HOG members), and the marketer that makes and promotes the brand.

answer

brand community

question

is one to which a person actually belongs, including fraternities and sororities and alumni associations. Such groups are easily identifiable and are targeted by firms selling insurance, insignia products, and charter vacations

answer

associative group

question

is one that a person wishes to be a member of or wishes to be identified with, such as a professional society or sports team. Firms frequently rely on spokespeople or settings associated with their target market's aspiration group in their advertising.

answer

aspiration group

question

is one that a person wishes to maintain a distance from because of differences in values or behaviors. Firms often avoid dissociative reference groups in their marketing. For example, retailer Abercrombie & Fitch offered to pay cast members of the controversial TV reality show Jersey Shore to not wear its clothing. "We understand that the show is for entertainment purposes, but believe this association is contrary to the aspirational nature of our brand, and may be distressing to many of our fans," the retailer stated.

answer

dissociative group

question

The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers

answer

consumer socialization

question

concept describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors

answer

family life cycle

question

may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. A person's occupation, source of income (not level of income), and education determine his or her social class. Generally speaking, three major social class categories exist—upper, middle, and lower—with subcategories within each. This structure has been observed in the United States, Great Britain, Western Europe, and Latin America

answer

Social class

question

Subgroups within the larger, or national, culture with unique values, ideas, and attitudes

answer

subcultures

question

Hispanics represent the largest racial/ethnic subculture in the United States in terms of population and spending power. About 50 percent of Hispanics in the United States are immigrants, and the majority are under the age of 29. One-third of Hispanics are younger than 18. Research on Hispanic buying practices has uncovered several consistent patterns:37 Hispanics are quality and brand conscious. They are willing to pay a premium price for premium quality and are often brand loyal Hispanics prefer buying American-made products, especially those offered by firms that cater to Hispanic needs. Hispanic buying preferences are strongly influenced by family and peers. Hispanics consider advertising a credible product information source, and U.S. firms spend about $8 billion annually on advertising to Hispanics. Convenience is not an important product attribute to Hispanic homemakers with respect to food preparation or consumption, nor is low caffeine in coffee and soft drinks, low fat in dairy products, or low cholesterol in packaged foods

answer

Hispanic Buying Patterns

question

Provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the

answer

NAICS

question

North American Industry Classification System

answer

What does NAICS mean?

question

Six-Digit

answer

What kind of Coding is used for NAICS

question

The Three Digits

answer

Industry Sub-sector Publishing Industries Motion-Pictures and Sound Recording Industries Broadcasting Except Internet

question

Four Digits Represent

answer

Industry Group Radio and Television Broadcasting Cable and other subscription programming

question

Five Digit

answer

Industry Radio Broadcasting TV Broadcasting

question

Six Digit

answer

U.S. National Industry Radio Network Radio Station

question

involves aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.

answer

Segmentation

question

Geographic Demographic Psychographics Behavioral

answer

Segmentation the Market

question

which is based on where prospective customers live or work region, city size, Statistical Area, Media-Television, Density

answer

Segmenting by Geography

question

Based on a population's statistical characteristics such as sex, age, ethnicity, education, birth era, occupation, income, or other quantifiable factors

answer

demographic segmentation

question

Dividing a market into different segments based on social class, lifestyle, or personality characteristics

answer

Psychographic segmentation

question

Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product

answer

Behavioral segmentation: Product features

question

is the quantity consumed or patronage—store visits—during a specific period. It varies significantly among different customer groups. Airlines have developed frequent-flier programs to encourage passengers to use the same airline repeatedly to create loyal customers.

answer

Behavioral segmentation: Usage rate

question

Firms located in a metropolitan statistical area might receive a personal sales call, whereas those in a micropolitan statistical area might be contacted by telephone.

answer

Geographic segmentation: Statistical area

question

Firms categorized by the North American Industry Classification System code as manufacturers that deal with customers throughout the world might have different document printing needs than retailers or lawyers serving local customers.

answer

Demographic segmentation: NAICS code

question

The size of the firm is related to the volume of digital documents produced, so firms with varying numbers of employees might be specific target markets for different Xerox MFPs.

answer

Demographic segmentation: Number of employees

question

often out of work and some depend on public assistance, tend to live day-to-day existence 7 Per Cent

answer

Lower lowers

question

the working poor - although their living standard is just above poverty, they strive toward a higher class; they often lack education and are poorly baid for unskilled work 9 Per Cent

answer

upper lowers

question

38%. Who lead a "working-class lifestyle." Depend heavily on relatives for economic and emotional support, advice on purchases and assistance in times of trouble.

answer

working class

question

A social class made up of skilled workers, professionals, business people, and wealthy farmers. 32 Per Cent

answer

middle class

question

is a social class that consists of high-income members of society who are well educated but do not belong to the elite membership of the super wealthy. 12 Per Cent

answer

upper middle

question

Those who have earned high income or wealth through exceptional ability, active in social and civic affairs (2%)

answer

lower uppers

question

the social elite who live on inherited wealth; they give large sums to charity, own more than one home, and send their children to the finest schools 1 Per Cent

answer

upper uppers

question

is segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product.

answer

User status

question

the rate at which a product's inventory is used or sold during a specific time.

answer

Usage rate

question

A form of segmentation where customers can show their allegiance to brands stores or companies.

answer

Loyalty status

question

an indicator used in behavioral market segmentation based on when consumers use a product most

answer

Usage occasions

question

Global region/country Statistical area Density

answer

Geographic

question

NAICS code & sector # of employees Annual Sales

answer

Demographic

question

# of locations Kind of product/service Who buys it? Type of buy - new buy, modified rebuy, straight rebuy

answer

Behavioral

question

When a company treats the market as a whole, focusing on what is common to the needs of customers rather than on what is different.

answer

Undifferentiated Marketing

question

a market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each

answer

Differentiated Marketing

question

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

answer

Concentrated Marketing

question

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing.

answer

Micromarketing

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are items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.

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Convenience products

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are items for which the consumer compares several alternatives on criteria such as price, quality, or style.

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Shopping products

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are items that the consumer makes a special effort to search out and buy.

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Specialty products

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are items that the consumer does not know about or knows about but does not initially want.

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Unsought products

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is a group of product or service items that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same outlets, or fall within a given price range. Nike's product lines include shoes and clothing, whereas the Mayo Clinic's service lines consist of inpatient hospital care and outpatient physician services. Each product line has its own marketing strategy.

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product line

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which consists of all of the product lines offered by an organization. For example, Cray Inc. has a small product mix of three product lines (supercomputers, storage systems, and a "data appliance") that are sold mostly to governments and large businesses. Procter & Gamble, however, has a large product mix that includes product lines such as beauty and grooming (Crest toothpaste and Gillette razors) and household care (Downy fabric softener, Tide detergent, and Pampers diapers).

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product mix

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Services are intangible; that is, they can't be held, touched, or seen before the purchase decision. In contrast, before purchasing a traditional product, a consumer can touch a box of laundry detergent, kick the tire of an automobile, or sample a new breakfast cereal. Because services tend to be a performance rather than an object, they are much more difficult for consumers to evaluate. To help consumers assess and compare services, marketers try to make them tangible or show the benefits of using the service. The American Airlines ad shows the airline's new seats and emphasizes their size and other tangible benefits. American Express also provides tangible benefits by allowing cardmembers to earn points for redemption of airline tickets, electronics, and gift cards through its Membership Rewards program.

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Intangibility

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Developing, pricing, promoting, and delivering services is challenging because the quality of a service is often inconsistent. Because services depend on the people who provide them, their quality varies with each person's capabilities and day-to-day job performance. In contrast, the Philadelphia Phillies baseball team may have great hitting and pitching and look like a pennant winner one day—and the next day they may lose by 10 runs.

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Inconsistency

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A third difference between services and products, and related to problems of consistency, is inseparability. In most cases, the consumer cannot (and does not) separate the deliverer of the service from the service itself. For example, Allstate's reminder that "You're in good hands" emphasizes the importance of its agents.

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Inseparability

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services is different from that of products. Inventory problems exist with products because many items are perishable and because there are costs associated with handling inventory. With services, inventory carrying costs are more subjective and are related to idle production capacity, which is when the service provider is available but there is no demand for the service.

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Inventory

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is a graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.

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demand curve

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factors that determine consumers' willingness and ability to pay for products and services.

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demand factors

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the percentage change in quantity demanded relative to a percentage change in price.

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price elasticity of demand

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exists when a 1 percent decrease in price produces more than a 1 percent increase in quantity demanded, thereby actually increasing total revenue. This results in a price elasticity that is greater than 1 with elastic demand.

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Elastic demand

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exists when a 1 percent decrease in price produces less than a 1 percent increase in quantity demanded, thereby actually decreasing total revenue.

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inelastic demand

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Demand based pricing strategies

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demand-oriented, cost-oriented, profit-oriented, and competition-oriented approaches

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setting the highest initial price that customers who really desire the product are willing to pay. These customers are not very price sensitive because they weigh the new product's price, quality, and ability to satisfy their needs against the same characteristics of substitutes.

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skimming pricing

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Setting a low initial price on a new product to appeal immediately to the mass market

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penetration pricing

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Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

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prestige pricing

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selling not just a single product but a line of products may price them at a number of different specific pricing points

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price lining

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which involves setting prices a few dollars or cents under an even number.

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odd-even pricing

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(1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers.

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target pricing

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the marketing of two or more products in a single package price. For example, Delta Air Lines offers vacation packages that include airfare, car rental, and lodging. Bundle pricing is based on the idea that consumers value the package more than the individual items.

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bundle pricing

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the charging of different prices to maximize revenue for a set amount of capacity at any given time.

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yield management pricing

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professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

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Vertical marketing systems

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combination of successive stages of production and distribution under a single ownership

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corporate vertical marketing system

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independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone. most popular among the three types of vertical marketing systems.

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Contractual Systems

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achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.

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Administered Systems

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occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers (Target and Kmart) or two or more wholesalers that handle the same manufacturer's brands. Two sources of horizontal conflict are common.

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Horizontal conflict

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a multiple-level distribution channel in which channel members work independently of one another

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Conventional Marketing System

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The store carries a large assortment of each product item

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depth of product line

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Stores that carry a considerable assortment (depth) of a related line of items are limited-line stores. Sports Authority sporting goods stores carry considerable depth in sports equipment ranging from weight-lifting accessories to running shoes. Stores that carry tremendous depth in one primary line of merchandise are single-line stores. Victoria's Secret, a nationwide chain, carries great depth in women's lingerie. Both limited- and single-line stores are often referred to as specialty outlets.

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Depth of Line

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Stores that carry a broad product line, with limited depth, are referred to as general merchandise stores. For example, large department stores such as Dillard's, Macy's, and Neiman Marcus carry a wide range of different types of products but not unusual sizes. The breadth and depth of merchandise lines are important decisions for a retailer.

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Breadth of Line

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Offering several unrelated product lines in a single store.

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scrambled merchandising

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A form of scrambled merchandising, which consists of a large store (more than 200,000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location.

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hypermarket

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refers to the variety of different items a store carries, such as appliances and books.

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Breadth of product line

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