Review Exam 2
Review Exam 2 MKTG 2423
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This 5 page Study Guide was uploaded by Lija Kolosha on Thursday October 6, 2016. The Study Guide belongs to MKTG 2423 at Tulsa Community College taught by Rebecca Legleiter in Fall 2016. Since its upload, it has received 7 views. For similar materials see Principles of Marketing in Marketing at Tulsa Community College.
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Date Created: 10/06/16
Review Exam 2 – Chapters 4, 7, & 8 Chapter 4 Consumer Behavior Consumer Behavior – the mental, emotional, physical, and social activities that people engage in when they shop for, select, purchase, use, and dispose of products. Entire process of making a purchase decision Problem solving process Routine – products that are usually inexpensive, bought on routine basis Limited – willing to compare price, style, comfort, availability, etc. Extensive – products are very expensive, long life-span, very important purchase Cognitive Dissonance – “buyer’s remorse” Maslow’s hierarchy of needs – People are motivated by unmet needs Self- Reaching one’s full potential actualizati on Self-esteem needs – car, house, job, cosmetics, Social Needs – Television, cellphone, computer Safety Needs – Insurance, tires, Mace, weapons Basic Needs – food, shelter, clothing, medicine, water 4 Types of Influences Cultural Social Family Psychological Culture – Learned values, behaviors, meaningful symbols, beliefs, etc. shared by people who live within a common society Passed from one generation to the next Subculture: Culture within a culture Ex: Religion, ethnic group, occupation Social Class – group of people with similar life styles, interests, and behaviors (Commonly associated with money and education) Reference Group – refers to the group of Social Classes: people who influence your purchase behavior (ex: peers, friends, neighbors) Upper Upper Class Family – Greatly influences our behavior Lower-Upper Class Psychological – Upper-Middle Class Lower-Middle Class Needs – an imbalance between actual state and Working Class A desired state Lower Class Motivation – and internal or external driving force that prompts behavior Perception – the meaning that a person gives or attributes to incoming information gathered through the senses Selective Exposure – we seek out only information that interests us (ex: books, movies, TV shows) Selective Retention – Remembering only what we choose to remember Selective Perception – We screen out or modify ideas and information to match our belief system Learning – changes in behavior based upon information or experience Self-Concept – a person’s view of themselves Real Self – objective view of yourself based on truth Looking Glass – the way we believe others see us Self-Image – the way we currently view ourselves Ideal Self – the image of the person we want to become Personality – a person’s consistent response to his or her environment Chapter 7 Market Research Market Research – Process of collecting data Target market – group of consumers who are most likely to purchase our product Hypothesis – educated guess about the outcome of market research Primary data – data collected for the very first time and for a specific purpose Scientific method: The study is large enough to be valid Secondary data – any data previously collected and then compiled into some usable form Primary Data Advantages: Disadvantages: Specific to our needs Very Expensive Data is up-to-date Time consuming Rich and detailed Difficult to gather information Accurate Difficult to compile data Secondary Data Advantages: Disadvantages: Easy to find Information can get outdated Multiple studies Not specific to our needs Inexpensive Is it accurate? Takes little time Is it relevant? Response rate – the % of people who participate in the research study Population – Total number of people you want to research Sample – smaller % of population Random sample – everyone has equal chance of participation (ex: mall surveys) Census – Market research for entire population of the United States Every household is required to participate Primary Data sources Survey – specific question with selected responses Mail, telephone, fax, social media, face-to-face Focus group – small group brought together to discuss product/company/item (7-15 people) Observation – Personal observation – watching the behavior of people Mechanical observation – videos, computers, traffic counts Experiment – Compare the response of 2 or more groups Very expensive Time consuming Difficult to conduct Usually only pharmaceuticals Interviews - lengthy answers are solicited from a small group of respondents Secondary Data Sources External – library, newspapers, magazines, chamber of commerce, census Internal – Company records, industry related Demographics – easily identifiable elements of consumers such as: Age, generations, gender, Marital status, # of children, household size, religion, social class, education, income White – 74 % Hispanic – 15% Fastest growing demographic group Largest # of children per family Catholic Majority under age of 45 Lower educational attainments Black – 13% Largest % increase per capita in education attainment Large # of children in poverty Largest % per capita of single moms Asian – 4% Highest income of any nationality Highest educational levels Spend money on quality items Smallest families Generations Senior Citizens – 21% of population Born prior to 1946 Traditional values Lowest divorce rates Are/were homeowners Worked for same company for whole career Baby Boomers – 28% of population Born between 1946-1964 Post WW2 babies Traditional family life Highest income bearing years Account for over 60% of purchases Uses credit A LOT 2 income families Highest divorce rate of any generation Generation X – 22% of population Born between 1965-1982 “latch-key kids” Focused Highest educational levels Wait later to marry/have kids Media savvy Seekers of happiness – often change jobs Committed to family Generation Y – 22% of population Born 1983-1999 Tech savvy Expected to change jobs 7-15 times Coddled Very socially tolerant Highest # of unwed mothers Stay at home longer Cell phones!! Not as concerned with future Chapter 8 Market Segmentation Market Segmentation – process of dividing the total market into smaller groups who will respond to a marketing strategy/mix Geographic Segmentation – population, size, region, climate/weather conditions, rural/urban, state/city Core region – happens when there are areas of the country where 40- 80%of a business’ sales come from Demographic – Age/Generations, DINK (Double Income, No Kids), Income levels, educational levels, marriage, kids, religion Psychographic – Attitudes, Interests, Opinions, Lifestyles Behavioral – dividing based on relationships Benefits provided – market into groups based upon what benefit they receive from purchase Usage Rates – Heavy, moderate, light, or promotional 80/20 Rule: 80% of sales/profits will come from 20% of customers/clients Lifestyle – Consistent way of living Micro Marketing – ultimate target marketing (very small group) Market penetration – “How can I get my market to buy more of my product?” Market development – trying to develop a new target market Product development – When we create a new product Diversification – diversifying into new markets/product categories
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