Marketing and Consumer Behavior: Terms and Definitions, Quizzes of International Business

Download Marketing and Consumer Behavior: Terms and Definitions and more Quizzes International Business in PDF only on Docsity! TERM 1 Consumer Products DEFINITION 1 intended for personal consumption by households TERM 2 Business Products DEFINITION 2 intended for resale, for use in producing other products, or for providing services in an organization. TERM 3 What are the commonly used demographic variables? DEFINITION 3 1) Age 2) Family life cycle3) Education 4) Income 5) Race and Ethnicity TERM 4 High Involvement Purchase DEFINITION 4 Entails all five stages of the buying-decision process. Involvement tends to be greater under any of the following conditions: - The consumer lacks information about alternatives for satisfying the need - The consumer considers the amount of money involved to be large - The product has considerable social importance - The product is seen as having a potential for providing significant benefits TERM 5 Low Involvement Purchase DEFINITION 5 Most buying decisions are for relatively low priced products that have close, acceptable substitutes and therefore do not meet any of these conditions.Ex. supermarkets, variety stores, and hardware stores TERM 6 What are the 5 stages in the buying process? DEFINITION 6 1) Need recognition The consumer is moved to action by a need or desire 2) Identification of alternatives The consumer identifies alternatives products and brands and collects information about them. 3) Evaluation of alternatives The consumer weighs the pros and cons of the alternatives identified 4) Decisions The consumer decides to buy or not to buy and makes other decisions related to the purchase 5) Postpurchase behavior The consumer seeks reassurance that the choice made was the correct one TERM 7 Impulse buying DEFINITION 7 purchasing with little or no advance planning, is also a form of low involvement decision-making. TERM 8 Cognitive Dissonance DEFINITION 8 a state of anxiety brought on by the difficulty of choosing from among desirable alternatives. TERM 9 What is the Cause of Dissonance? DEFINITION 9 occurs when each of the alternatives seriously considered by the consumer has both attractive and unattractive features. Example: in purchasing a portable music player, the one selected may be the most expensive (unattractive), but it may provide the best sound system (attractive) TERM 10 Dissonance increases when... DEFINITION 10 1) the greater the importance of the purchase decision 2) the greater the similarity between the item selected and item rejected Buying a house or a car is likely to create more dissonance than buying a set of tires TERM 21 Bases for Market Segmentation DEFINITION 21 1) Geographic Basing segments on location 2) Demographics 3) Psychographic - Personality Characteristics - Life-style - Values 4) Behavioral - Benefits desired - Usage Rate TERM 22 Consumer Good Classification DEFINITION 22 1) Convenience Good2) Shopping Good3) Speciality Good4) Unsought Good TERM 23 Convenience Good DEFINITION 23 A tangible product that the consumer feels comfortable purchasing without gathering additional information and then actually buys with a minimum effort. EX. Food items, inexpensive candy, aspirin, toothpaste - Low price - Purchased frequently TERM 24 Shopping Good DEFINITION 24 A tangible product for which a consumer wants to compare quality, price, and perhaps style in several stores before making a purchased. EX. Fashionable apparel, furniture, major appliances, automobiles. TERM 25 Speciality Good DEFINITION 25 A tangible product for which a consumer has a strong brand preference and is willing to expend substantial time and effort locating the desired brand. EX. expensive mens suits, stereo sound equipment, health foods, photographic equipment. TERM 26 Unsought Good DEFINITION 26 a new product that the consumer is not yet aware of or a product that the consumer is aware of but does not want right now. TERM 27 Why do New Products Fail? DEFINITION 27 - The most common problem is not being different than existing products.-If it does not deliver on its promise.-If it is perceived as providing to few benefits in relation to its price. - The idea or timing is wrong TERM 28 Product / Brand Manager DEFINITION 28 - This individual is responsible for planning new products as well as managing established products. -Plans the complete marketing program for a brand or group of products. -Specific tasks include setting marketing goals, preparing budgets, and drafting plans for advertising and personal selling activities. Developing new products along with improving established products may also be part of the job description. -Biggest drawback is great responsibility but with little authority TERM 29 First thing a manufacturer should determine before adding products to its assortment DEFINITION 29 - There must be adequate market demand - The product must satisfy key financial criteria - The product must be compatible with environmental standards - The product must fit into the companys present marketing structure TERM 30 Why develop New Products? DEFINITION 30 1) Rapid technological changes, which can make existing products obsolete 2) The practice of many competitors to copy a successful product, which can neutralize an innovative products advantage TERM 31 Comparative Advantage DEFINITION 31 Some countries possess unique natural or human resources that give them an edge when it comes to producing particular products. By specializing where it has a comparative advantage and trading for other products, a country maximizes its economic prosperity. TERM 32 Why engage in International Marketing? DEFINITION 32 - Potential demand in foreign markets There is a strong demand for a wide variety of products all over the world. There is a demand for business products such as machine tools, construction equipment, and computers. As a result, firms can often take advantage of their specialized skills in manufacturing or distribution in new regions. - Saturation of domestic markets Firms, even those without international experience, look to foreign markets when domestic demand plateaus. - Customer expectations Often a firms follows its domestic customers abroad. Ex. many U.S banks found it necessary to establish branches in foreign countries because their customers were doing business internationally. TERM 33 Product Differentiation DEFINITION 33 one firm distinguishes its product from competitive brands offered to the same aggregate market. TERM 34 2 ways to differentiate a product DEFINITION 34 1) creating a distinctive appearance with the package or product shape2) using a promotional appeal that features a differentiating claim.