Complete Study Guide for MKT test 2
Complete Study Guide for MKT test 2 MKT 301
Popular in Marketing
Popular in Marketing
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
One Day of Notes
verified elite notetaker
verified elite notetaker
This 8 page Study Guide was uploaded by Natalie Land on Thursday March 24, 2016. The Study Guide belongs to MKT 301 at University of Miami taught by Howard Marmostein in Summer 2015. Since its upload, it has received 164 views. For similar materials see Marketing in Marketing at University of Miami.
Reviews for Complete Study Guide for MKT test 2
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/24/16
Affective component A component of attitude that reflects what a person feels about the issue at hand-‐ like or dislike of something Attitude A person’s enduring evaluation of his or her feelings about behavioral tendencies toward an object or idea. Behavioral component A component of attitude that comprises the actions a person takes with regard to the issue at hand Cognitive component A component of attitude that reflects what a person believes to be true Compensatory decision rule At work when the consumer is evaluating alternatives and trades off one characteristic against another Consumer decision rule The set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives Conversion rate Percentage of consumers who buy a product after viewing it Culture Set of values, guiding beliefs, understandings and way of doing things shared by members of a society Determinant attributes Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ Esteem needs Needs that enable people to fulfill inner desires Evaluative criteria Consist of a set of salient or important attributes about a particular product Evoked set Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision Extended problem solving A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives External locus of control Refers to when consumers believe that fate or other external factors control all outcomes External search for Occurs when the buyer seeks information outside his or her personal information knowledge base to help make the buying decision Financial risk Risk associated with a monetary outlay: includes the initial cost of the purchase as well as the costs of using the items or service Functional needs Pertain to the performance of a product or service Habitual decision making A purchase decision process in which consumers engage with little conscious effort Impulse buying A buying decision made by customers on the spot when they see the merchandise Internal locus of control Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities Internal search for Occurs when the buyer examines his or her own memory and knowledge information about the product or service, gathered through past experiences Involvement Consumer’s interest in product or service Learning Refers to change in a persons thought process or behavior that arises from experience and takes place throughout the consumer decision process Lifestyle A component of psychographics refers to the way a person lives his or her life to achieve goals Limited problem solving Occurs during a purchase decision that calls for at most a moderate amount of effort and time Love needs Needs expressed through interactions with others Maslow hierarchy of needs A paradigm for classifying people’s motives. It argues that when lower level more basic needs are fulfilled people turn to satisfying the higher levels Motive A need or want that is strong enough to cause the person to seek satisfaction Multi attribute model A compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes and characteristics Need recognition The beginning of the consumer decision process: occurs when consumers recognize they have an unsatisfied need and want to go from their actual needy state to desired state Negative word of mouth Occurs when consumers spread negative information about a product or service Noncompensatory decision At work when consumers choose a product or service on the basis of a rule subset of its characteristics, regardless of the values of its other attributes Perception The process by which people select, organize, and interpret information to form a meaningful picture of the world Performance risk Perceived danger inherent in a poorly performing product or service Physiological needs Relating to the basic biological necessities of life: food drink rest shelter Physiological risks The fear of an actual harm should a product not perform properly Post purchase cognitive Psychologically uncomfortable state produced by an inconsistency dissonance between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance: buyer’s remorse Psychological needs Personal gratification consumers associate with a product or service Psychological risks Associated with the way people will feel if the product or service doesn’t convey the right image Reference group One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors Retrieval sets Includes those brands or stores that the consumer can readily bring forth from memory Safety needs One of the needs in maslow’s hierarchy of needs pertains to protection and physical well being Safety risk Self actualization When a person is completely satisfied with his or her life Situational factors Factors affecting the consumer decision process Social risks The fears that consumers suffer when they worry others might not regard their purchase positively universal sets Includes all possible choices for a product category Direct investment Firm maintains 100 percent ownership of its plants, operation facilities, and offices in a foreign country. Duty A tax levied on a good imported into a country also called tariff Exchange control Regulation of a country’s current exchange rate Exchange rate The measure of how much one currency is worth in relation to another Exporting Producing goods in one country and selling them in another Franchisee A contractual agreement between franchisor and a franchisee that allows the franchisee to open a business using a name and format developed and supported by the franchisor Globalization The processes by which goods, services, capital, people, information, and ideas flow across national borders Glocalization Process of firms standardizing their products globally, using different promotional campaigns to sell them Gross domestic product Defined as the market value of the goods and services produced by a country in a year Gross national income GDP plus the net income earned from investments abroad Infrastructure Basic facilities, services, and installations needed for a community or society to function such as transportation, and communication systems, water and power lines Joint venture When a firm entering a new market pools its resources with those of a local firm to form an new company in which ownership, control, and profits are shared Purchasing power parity A theory that states that if the exchange rates of two countries are in equilibrium a product purchased in one will cost the same in the other Quota Designates the maximum quantity of a product that may be brought into a country during a specific time period Reverse innovation When companies initially develop products for niche or underdeveloped markets and then expand them into their original home markets Strategic alliance A collaborative relationship between independent firms, though the partnering firms do not create an equity partnership Trade agreements Intragovernmental agreements designed to manage and promote trade activities for specific regions Trade surplus Occurs when a country has a higher level of exports than imports Trading bloc Consists of those countries that have signed a particular trade agreement Behavioral segmentation A segmentation method that divides customers into groups based on how they use the product or service Benefit segmentation The grouping of consumers on the basis of the benefits they derive from products or services Concentrated targeting strategy A marketing strategy of selecting a single primary target market and focusing all energies on providing a product to fit that markets needs Cookies Computer program, installed on hard drive that provides identifying information Demographic segmentation The grouping of consumers according to easily measured , objective charactersitics such as gender age and income Difference targeting strategy A strategy through which a firm targets several market segments with a different offering for each Geodemographic segmentation The grouping of consumers on the basis of a combination of geographic, demographic, and life-‐ style characteristics Geographic segmentation The grouping of consumers on the basis of where they live Ideal point The position at which a particular market segment’s ideal product would lie on a perceptual map Lifestyles A component of psychographics refers to the way a person lives his or her life to achieve goals Loyalty segmentation Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time Micromarketing An extreme form of segmentation that tailors a product or service to suit an individual customer’s wants or needs Occasion segmentation A type of behavioral segmentation based on when a product or service is purchased or consumed Perceptual map Displays in two or more dimensions the position of products or brands in consumer’s minds Psychographics Used in segmentation delves into how consumers describe themselves, allows people to describe themselves Self-‐concept The image a person has of himself or herself Self values Goals for life not just the goals one wants to accomplish in a day Undifferentiated target strategy A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone Value Reflects the relationship of benefits to costs or what the consumer gets for what he or she gives Value and lifestyle survey A psychographic tool developed by SRI consulting business intelligence, classifies consumers into eight segments Value proposition The unique value that a product or service provides to its consumers and how it is better and different from the others Actual product The physical attributes of a product including the brand name features design, quality level, and packaging Associated services The non-‐physical attributes of a product including product warranty, financing, product supper, and after-‐sale service Augmented product Brand association The mental links that consumers make between a brand and its key product attributes Brand awareness Measures how many consumers in a market are familiar with the brand and what it stands for Brand dilution Occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold Brand equity The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service Brand extension The use of the same brand name for new products being introduced to the same or new markets Brand licensing A contractual agreement between firms whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for negotiated fee Brand loyalty Occurs when a consumer buys the same brands product or service repeatedly over time rather than buying from multiple suppliers Brand repositioning A strategy in which marketers change a brands focus to target new markets or realign the brands core emphasis with changing market preferences Breadth Number of product lines offered by a firm Co-‐branding The practice of marketing two or more brands together on the same package or promotion Consumer products Products and services used by people for their personal use Convenience products Those for which the consumer is not willing to spend any effort to evaluate prior to purchase Core customer value The basic problem solving benefits that consumers are seeking Family brands A firms own corporate name used to brand its product lines and products Depth The number of categories within a product line Individual brands The use of individual brand names for each of a firms product Line extension The use of the same brand name within the same product line and represents an increase in a product lines depth Manufacturer brands Brands owned and managed by the manufacturer Perceived value The relationship between a products or services benefits and its cost Primary package The packaging the consumer uses such as toothpaste tube from which he or she typically seeks convenience in terms of storage use and consumption Private label brands Brands developed and marketed by a retailer and available only from that retailer Product Anything that is of value to a consumer and can be offered through marketing exchange Product lines Groups of associated items such as those that consumers use together or think of as part of a group Product mix The complete set of all products offered by a firm Retailer/store brands Products developed by retailers Secondary package The wrapper or exterior carton that contains the primary package Shopping products Those for which consumers will spend time comparing alternatives ie apparel Specialty products Customer shows a strong preference and for which he or she will expend considerable effort to search for the best supplier Alpha testing An attempt by the firm to determine whether a product will perform by its design and whether it satisfies the need for which it was intended Beta testing Having potential consumers examine a product prototype in a real use setting to determine its functionality performance etc Concept Brief written descriptions of a product or service, its technology, working principles, and forms Concept testing The process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions Decline stage Stage of the product life cycle when sales decline and the product eventually exits the market Diffusion of innovation The process by which the use of an innovation whether product or service, spreads throughout a market group over time and over various categories of adopters Early adopter The second group of consumers in the diffusion of innovation model, to use a product or service innovation Early majority A group of consumers in diffusion of innovation model that represents 34 percent of the population, they don’t like to take much risk and therefore tend to wait until bugs are worked out of a product or service First movers Product pioneers, first to create a market or product category, making them readily recognizable to consumers Growth stage Stage of the product life cycle when the product gains acceptance, demand and sales increase Innovation The process by which ideas are transformed into new products and services that will help firms grow Innovator Those buyers who want to be the first to have the new product or service Introduction stage Stage of the product life cycle when innovators start buying the product Introductory price promotion Short-‐ term price discounts designed to encourage trial Laggard Consumers who like to avoid change and rely on traditional products Late majority The last group of buyers to enter a new product market; Lead user Innovative product users who modify existing products according to their own ideas to suit needs Maturity stage When industry sales are at their peak, firms try to rejuvenate their products by adding new stuff Pioneer New product introductions that establish a completely new market or radically change both the rules of consumer preference and competition Premarket test Conducted before a product or service is brought to market to determine how many customers will try and continue to use it Product design Product development Prototype The first physical form or service description of a new product still in rough form Reverse engineering Taking apart a competitors product analyzing it and creating an improved product Slotting allowance Test marketing Trade promotion Trade show
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'