Podcast
Questions and Answers
Which activity is LEAST associated with consumer behavior?
Which activity is LEAST associated with consumer behavior?
- Searching for information about different brands.
- Disposing of a product after use.
- Evaluating a product after purchase.
- Creating a product design specification. (correct)
What differentiates a personal consumer from an organizational consumer?
What differentiates a personal consumer from an organizational consumer?
- Personal consumers always purchase in larger quantities.
- Personal consumers are more influenced by marketing tactics.
- Organizational consumers purchase for the operation of the organization. (correct)
- Organizational consumers are always profit-driven.
A company that primarily focuses on efficient production and wide distribution is operating under which concept?
A company that primarily focuses on efficient production and wide distribution is operating under which concept?
- The Selling Concept.
- The Production Concept. (correct)
- The Marketing Concept.
- The Product Concept.
What is 'marketing myopia', a term associated with the product concept?
What is 'marketing myopia', a term associated with the product concept?
Which concept assumes that consumers are unlikely to buy a product unless they're aggressively persuaded?
Which concept assumes that consumers are unlikely to buy a product unless they're aggressively persuaded?
What is the primary focus of companies that adopt the 'marketing concept'?
What is the primary focus of companies that adopt the 'marketing concept'?
Which component is NOT a typical element of implementing the marketing concept?
Which component is NOT a typical element of implementing the marketing concept?
What does 'segmentation' mean in the context of marketing?
What does 'segmentation' mean in the context of marketing?
After a market has been segmented, what does 'targeting' involve?
After a market has been segmented, what does 'targeting' involve?
What is the purpose of 'positioning' a product?
What is the purpose of 'positioning' a product?
Which element is NOT part of the traditional marketing mix?
Which element is NOT part of the traditional marketing mix?
What are the three key concepts underlying successful relationships with customers?
What are the three key concepts underlying successful relationships with customers?
Which of the following best describes customer 'value'?
Which of the following best describes customer 'value'?
How is customer 'satisfaction' best defined?
How is customer 'satisfaction' best defined?
What is the primary goal of focusing on customer 'retention'?
What is the primary goal of focusing on customer 'retention'?
In customer profitability-focused marketing, what is the purpose of categorizing customers into tiers?
In customer profitability-focused marketing, what is the purpose of categorizing customers into tiers?
What is the KEY difference between the traditional marketing concept and value and retention-focused marketing?
What is the KEY difference between the traditional marketing concept and value and retention-focused marketing?
How have digital technologies impacted the relationship between consumers and marketers?
How have digital technologies impacted the relationship between consumers and marketers?
A company that considers the well-being of consumers and society in addition to profit when marketing its products is practicing what?
A company that considers the well-being of consumers and society in addition to profit when marketing its products is practicing what?
Which discipline does NOT significantly contribute to the study of consumer behavior?
Which discipline does NOT significantly contribute to the study of consumer behavior?
In the simplified model of consumer decision making, what is the FIRST step a consumer typically undertakes?
In the simplified model of consumer decision making, what is the FIRST step a consumer typically undertakes?
Within the psychological field influencing consumer decisions, which factor refers to the process by which individuals select, organize, and interpret information?
Within the psychological field influencing consumer decisions, which factor refers to the process by which individuals select, organize, and interpret information?
According to the simplified model, what directly influences the 'Need Recognition' stage of the consumer decision-making process?
According to the simplified model, what directly influences the 'Need Recognition' stage of the consumer decision-making process?
What is the primary difference between 'trial' and 'repeat purchase' in the 'Purchase' stage of the consumer decision-making model?
What is the primary difference between 'trial' and 'repeat purchase' in the 'Purchase' stage of the consumer decision-making model?
How does 'experience' primarily influence the consumer decision-making process, according to the model?
How does 'experience' primarily influence the consumer decision-making process, according to the model?
How do 'sociocultural factors' impact the consumer decision-making process?
How do 'sociocultural factors' impact the consumer decision-making process?
Which of the following is the BEST example of a 'noncommercial source' of information in the consumer decision-making process?
Which of the following is the BEST example of a 'noncommercial source' of information in the consumer decision-making process?
Integrating the consumer decision-making process, how does 'Postpurchase Evaluation' primarily influence future consumer behavior?
Integrating the consumer decision-making process, how does 'Postpurchase Evaluation' primarily influence future consumer behavior?
Within the 'Sociocultural Environment', how might a consumer's 'social class' most directly impact their purchasing decisions?
Within the 'Sociocultural Environment', how might a consumer's 'social class' most directly impact their purchasing decisions?
Flashcards
Consumer Behavior
Consumer Behavior
The behavior consumers display when searching for, purchasing, using, evaluating, and disposing of products and services to satisfy their needs.
Personal Consumer
Personal Consumer
An individual who buys goods and services for their own use, household use, use by a family member, or as a gift for a friend.
Organizational Consumer
Organizational Consumer
A business, government agency, or other institution that buys goods, services, and/or equipment necessary for the organization to function.
Production Concept
Production Concept
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Product Concept
Product Concept
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The Selling Concept
The Selling Concept
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The Marketing Concept
The Marketing Concept
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Consumer Research
Consumer Research
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Segmentation
Segmentation
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Targeting
Targeting
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Positioning
Positioning
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Marketing Mix (4 P's)
Marketing Mix (4 P's)
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Customer Value
Customer Value
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Customer Satisfaction
Customer Satisfaction
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Customer Retention
Customer Retention
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Customer Profitability-Focused Marketing
Customer Profitability-Focused Marketing
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Societal Marketing Concept
Societal Marketing Concept
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Study Notes
- Consumer behavior includes the actions consumers take when searching for, purchasing, using, evaluating, and disposing of products and services expected to satisfy their needs.
- Personal consumers buy goods and services for their own use, for household use, for a family member, or for a friend.
- Organizational consumers include businesses, government agencies, or other institutions (profit or nonprofit) that buy goods, services, and/or equipment necessary for their operation.
Development of the Marketing Concept
- Production Concept: Assumes consumers prioritize product availability at low prices, focusing on cheap, efficient production, intensive distribution, and market expansion.
- Product Concept: Assumes consumers prefer products with the highest quality, best performance, and most features, emphasizing quality improvement and feature addition. This can lead to marketing myopia.
- Selling Concept: Assumes consumers need aggressive persuasion to buy, prioritizing selling efforts over customer needs and satisfaction.
- Marketing Concept: To succeed, companies must identify target markets' needs and wants and deliver desired satisfactions better than competitors, focusing on making what you can sell and focusing on buyer's needs.
Implementing The Marketing Concept
- Consumer Research: The process and tools used to study consumer behavior involves taking two perspectives: positivist and interpretivist approaches
- Segmentation: Involves dividing the market into subsets of consumers with common needs or characteristics.
- Targeting: After segmentation, selecting one or more segments to pursue is the next step.
- Positioning: Developing a distinct image for the product in the consumer's mind involves communicating the benefits of the product and a unique selling proposition.
The Marketing Mix
- The marketing mix consists of the 4 P's: Product, Price, Place, and Promotion.
Successful Relationships
- Customer Value: Defined as the ratio between perceived benefits and the resources used to obtain them; it's relative, subjective, and requires a value proposition.
- Customer Satisfaction: The individual's perception of the product or service's performance relative to their expectations.
- Customer Retention: The objective of retaining highly satisfied customers, where loyal customers buy more, are less price-sensitive, ignore competitors' advertising, are cheaper to service and spread positive word-of-mouth.
Customer Profitability-Focused Marketing
- Customer Profitability-Focused Marketing: Tracks costs and revenues of individual consumers, categorizing them into tiers based on consumption behavior.
- A customer pyramid groups customers into tiers, such as Platinum, Gold, Iron, and Lead.
Traditional Marketing vs Value and Retention-Focused Marketing
- Traditional Marketing Concept focuses on making only what you can sell instead of trying to sell what you make.
- Value and Retention Focused Marketing uses technology that enables customers to customize what you make.
- Traditional Marketing do not focus on the product but instead the need that it satisfies whereas Value-based Marketing focus on the product’s perceived value, as well as the need that it satisfies
- Traditional Marketing focus on marketing products and services that match customers’ needs better than competitors’ offerings. Whereas Value-based marketing provides an understanding of customer needs to develop offerings that customers perceive as more valuable than competitors’ offerings.
Impact of Digital Technologies
- Digital technologies have led to consumers having more power and access to information.
- Marketers can gather more information about consumers.
- Exchanges between marketers and customers are interactive, instantaneous, and extend beyond PCs.
- Marketers are compelled to offer a broader range of products and services.
Societal Marketing Concept
- Marketers adhere to social responsibility principles and must satisfy the needs and wants of their target markets while preserving and enhancing the well-being of consumers and society.
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