Consumer Behavior Concepts

Questions and Answers

What defines a break-even point for a company?

When revenues equal expenses (correct)

When expenses exceed revenues

When profit margins are maximized

When revenues exceed expenses

Which pricing strategy involves utilizing the by-product of the main product?

Captive product pricing

By-product pricing (correct)

Complex pricing

Competitive pricing

In which economic situation is a buyer's market characterized?

High demand leading to increased prices

More products than consumers willing to purchase (correct)

Equal number of consumers and products

More consumers than products available

What is the primary focus of causal research?

To understand cause-and-effect relationships Signup and view all the answers

What does concentrated marketing entail?

Tailoring products for one specific segment only Signup and view all the answers

What describes butterflies in consumer behavior?

Customers who frequently switch brands for the best deals Signup and view all the answers

Who typically acts as the buyer in a business market?

A professional purchasing agent of the firm Signup and view all the answers

What is meant by competitive pricing?

Setting prices according to competitors' pricing Signup and view all the answers

What type of buying behavior involves extensive information gathering before purchasing?

Complex buying behavior Signup and view all the answers

What is a key characteristic of a business market?

Involves firms and organizations purchasing goods for resale Signup and view all the answers

Study Notes

Consumer Behavior and Market Variables

Behavioristic Variable: Categorizes consumer markets based on product usage and brand attitudes.
Butterflies: Consumers who frequently switch brands seeking the best deals, lacking brand loyalty.
Buying Situation: Describes the context and frequency of purchases influencing consumer decisions.

Financial Concepts in Business

Break-even Point: The juncture where a company's revenues match its expenses, indicating no profit or loss.
Buyer’s Market: Economic condition characterized by an oversupply of products, leading to lower prices due to insufficient consumer demand.

Market Structures

Business Market: Comprises firms and organizations that purchase goods to resell or use in their operations.
Competitor: A rival company providing similar products or services that compete for the same customer base.

Pricing Strategies

By-product Pricing: Pricing associated with a secondary product produced alongside the main product, sometimes sold separately.
Captive Product Pricing: Main products sold at lower prices, but additional costs are incurred for necessary supplementary products.
Competitive Pricing: Setting prices based on the rates charged by competing firms for similar products.

Research and Development

Causal Research: Focuses on understanding the cause-and-effect dynamics between variables.
Commercialization: The final stage of product development where decisions are made regarding the product launch.

Consumer Purchasing Behavior

Complex Buying Behavior: Involves extensive information gathering and brand comparison before purchasing high-cost items, such as real estate or luxury goods.
Concentrated Marketing: A strategy aimed at catering specifically to one market segment, tailoring products or services to that niche.

Description

This quiz covers key concepts in consumer behavior, including market segmentation, break-even analysis, and buyer types. Understand how different variables influence consumer decisions and market dynamics. Test your knowledge on behavioristic variables and market classifications.