BBUS 421 Consumer Marketing Quiz 1 (CH.

1, 14, 15, 16, 17)

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1. Consumer the study of individuals, groups, or 13. Problem Problem recognition is the result of a gap
Behavior organizations and the processes they use to Recognition between a desired state and an actual state
select, secure, use, and dispose of products, (also sufficient to arouse and activate the decision
services, experiences, or ideas to satisfy issue/need process.
needs and the impacts that these processes recognition)
have on the consumer and society
14. Desire to 1. The magnitude of the discrepancy between
2. 4 1. Marketing Strategy Solve the desired and actual states, and
Applications 2. Regulatory Policy Problem 2. The relative importance of the problem
of Consumer 3. Social Marketing Depends
Behavior 4. Informed Individuals on 2
Factors:
3. Market 1. The Consumers
Analysis 4 2. The Company 15. Actual the way an individual perceives his/her
Components 3. The Competitors State feelings and situation to be at the present time.
4. The Conditions
16. Desired the way an individual wants to feel or be at the
4. Market a portion of a larger market whose needs State present time.
Segmentation differ from the larger market •Consumer Perception is key.
5. Market 1. Identifying Product-Related Need Sets 17. Active An active problem is one the consumer is
Segmentation 2. Grouping Customers with Similar Need Problem aware of or will become aware of in normal
Steps (4) Sets course of events.
3. Describing Each Group Marketing strategy: Only require marketer to
4. Selecting an Attractive Segment(s) to Serve convince consumers that its brand is the
superior solution.
6. Marketing Mix Product
•Communications 18. Inactive An inactive problem is one of which the
•Price Problem consumer is not aware.
•Distribution o Marketing strategy: Marketer must convince
•Services consumers that they have the problem AND
that their brand is a superior solution.
7. Purchase the level of concern for, or interest in, the
Involvement purchase process, triggered by need to 19. 3 Ways to -Problem Analysis
consider a particular purchase, and so it is a Discover -Product Analysis
temporary state influenced by the interaction Consumer -Emotion Research
of individual, product, and situational Problems:
characteristics
20. Activity Focuses on a particular activity to determine
8. Product Interest for a particular product type Analysis what problems consumers encounter during
Involvement the performance of the activity.
9. Nominal when there is very low involvement with the 21. Product Examines the purchase or use of a particular
Decision purchase. Analysis product or brand. Consumers may be asked
Making about problems associated with using a
product or brand.
10. Nominal 1. Brand Loyal Purchases
Decision High commitment to brand 22. Problem Starts with a problem and asks which activities,
Making 2 2. Repeat Purchases Analysis products, or brand are associated with (or
Categories Low commitment to brand perhaps could eliminate) those problems.
11. Limited Limited decision making involves internal 23. Human Human factors research attempts to determine
Decision and limited external search, few alternatives, Factors human capabilities in areas such as vision,
Making simple decision rules on a few attributes, and Research strength, response time, flexibility, and fatigue
little postpurchase evaluation. and the effect on these capabilities of lighting,
temperature, and sound.
12. Extended Extended decision making involves extensive
o This type of research can sometimes identify
Decision internal and external search followed by a
functional problems that consumers are
Making complex evaluation of multiple alternatives.
unaware of.
24. Emotion Marketers are increasingly conducting 36. Strategies -Maintenance
Research research on the role of emotions in (6) -Disrupt
problem recognition and resolution. -Capture
Critical in helping marketers anticipate -Intercept
consumer reaction to problems and train -Preference
customer service personnel to respond -Acceptance
appropriately.
37. Maintenance If the brand is purchased habitually by the
25. Generic Involves a discrepancy that a variety of Strategy target market, the marketer's strategy is to
Problem brands within a product category can maintain that behavior
Recognition reduce This requires consistent attention to product
o Increasing generic problem recognition quality, distribution, and a reinforcement
generally results in an expansion of the advertising strategy.
total market
38. Disrupt If the brand is not part of the evoked set and
26. Selective Involves a discrepancy only one brand Strategy the target market engages in nominal decision
Problem can solve making, the marketer's first task is to disrupt
Recognition o Firms attempt to cause selective the existing decision pattern.
problem recognition to gain or maintain Long-Run: Major brand improvement along
market share with attention-attracting advertising could
shift consumer to more extensive decision
27. Suppressing Occasionally information is introduced in
making.
Problem the marketplace that triggers problem
Short-Run: Attention-attracting advertising
Recognition recognition that some marketers prefer to
aimed specifically at breaking habitual
avoid.
decision making can be successful.
o Obviously marketers do not want their
-not in evoked, nominal decision
current customers to recognize problems
with their brands. 39. Capture Limited decision making generally involves a
o Effective quality control and distribution Strategy few brands evaluated on only a few criteria.
(limited out-of-stock situations) are (req. emphasis on quality and dist.)
important in this effort. Brand is in evoked set.
o Packages and package inserts that Search occurs mainly at the point-of-purchase
assure the consumer of the wisdom of or in readily available media.
their purchase are also common. Objective is to capture as large a share as
practical.
28. Uncontrollable -Variety Seeking (switching brands for
-limited decision + in evoked
Determinants to reasons beyond company's control)
Problem -Sensory-specific satiety (consumers get 40. Intercept If limited decision making and brand is not
Recognition bored (satiated) with sensory attributes Strategy part of evoked set, objective will be to
more than on non-sensory attributes.) intercept the consumer during search.
-limited decision + not in evoked
29. Appropriate Awareness Set (encompasses evoked set,
Alternatives inept set, and inert set) 41. Preference Extended decision making with the brand in
Strategy the evoked set requires a preference strategy.
30. Awareness Set All products consumer is aware of
A simple capture strategy not likely adequate.
31. Evoked Set Products consumer view as viable Instead, marketer needs to structure
options information so brand becomes preferred by
32. Inert Set Products consumer is indifferent towards target market.
-extended decision with brand in evoked set
33. Inept Set Product consumer views negatively
42. Acceptance Similar to preference strategy, but
34. 5 Sources of -Memory
Strategy complicated by fact that target market is not
Information -Personal Sources
seeking information about the brand.
-Independent Sources
Beyond preference strategy, marketer must
-Marketing Sources
attract consumer attention or motivate brand
-Experiential Sources
learning.
35. Information Too many options to choose from Incentives to try product, long-term
Overload advertising to enhance low-involvement
learning and use of the Internet are useful for
gaining acceptance.
-Extended decision + not evoked
43. Rational Assumes the consumer has sufficient skills 55. Store Brands Brand made by store (ex. Kroger in
Choice Theory to calculate which option will maximize Fred Meyer). High quality at a low
his/her value, and will choose on this basis. price.
44. Bounded A limited capacity for processing 56. Store Image Perception of the store by consumers
Rationality information
57. Shopping • Omni-channel (multiple channels at
45. Metagoal refers to the general nature of the outcome Orientations (2) once)
Concept being sought. • Multiple channel (multiple channels
available to use)
46. Types of 1. Affective Choice
Consumer 2. Attitude-Based Choice 58. Perceived Risk. •Social Cost
Choice 3. Attribute-Based Choice Product failure can •Financial Cost
Processes (3) result in: •Time Cost
•Effort Cost
47. Affective Affective choices tend to be more holistic.
•Physical Cost
Choice Brand is not decomposed into distinct
components for separate evaluation. 59. Conditions that can •Outlet Atmosphere
Evaluations generally focus on how they affect in-store and •Point of Purchase Materials
will make the user feel as they are used. online choices (4): •Stockouts
Consummatory Motive: underlie behaviors •Website functionality
that are intrinsically rewarding to the
60. Stockouts and 1. Substitution costs
individual involved.
reactionary behavior 2. Transaction costs
Instrumental Motive: activate behaviors
(three perceived 3. Opportunity costs
designed to achieve a second goal.
costs):
48. Attribute Requires the knowledge of specific
61. Customer Value Difference between all of the benefits
Based Choice attributes at the time the choice is made,
derived from a total product and all
Process and it involves attribute-by-attribute
of the costs to acquire the benefits.
comparisons across brands.
62. Market -Influences of external research
49. Attitude Based Involves the use of general attitudes,
Characteristics -Store distribution
Choice summary impressions, intuitions, or
-Info availability
Process heuristics; no attribute-by-attribute
comparisons are made at the time of 63. Product Influences External Search
choice. Characteristics Perceived product differentiation
Positive products (positive
50. Evaluative various dimensions, features, or benefits
reinforcement)
Criteria sought in response to a specific problem.
Are typically associated with desired 64. Consumer External search
benefits and can differ in characteristics (increases with social status inversely
type with age)
number, and 65. Noncompensatory High level of one attribute will not
importance Rules offset low level of another
51. Decision Rules -Conjunctive Rule (non-compensatory) 66. Internet Retailing 1. Travel
for Attribute -Disjunctive Rule (non-compensatory) 2. Apparel
Based Choices -Elimination-by-aspects Rule (non- 3. Computers & Peripherals
compensatory) 4. Automotive
-Lexicographic rule (non-compensatory) 5. Consumer electronices
-Compensatory Rule
67. Spillover Sales sales of additional items to
52. Compensatory states that the brand that rates highest on customers who came to purchase an
Rule the sum of the consumer's judgments of the advertised item
relevant evaluative criteria will be chosen.
53. Retail Outlet refers to any source of products or services
for consumers. Ex. In-home shopping.
54. Barriers to -Privacy Concerns
internet -Lack of Touch
shopping: