Consumer Decision Making and Marketing Analysis

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Questions and Answers

What are the main types of market research?

Qualitative and Quantitative

Formal and Informal

Exploratory and Conclusive

Primary and Secondary (correct)

Market maps are used to visualize consumer perceptions of products.

True

Why is market research necessary for firms?

To improve marketing decisions by understanding consumers, competitors, and environmental trends.

Firms utilize _____ attributes to position their products distinctly in the market.

positioning Signup and view all the answers

Which part of the consumer decision-making process involves gathering data about product attributes?

Information Gathering Signup and view all the answers

Match the types of market research with their descriptions:

Exploratory = Used for understanding problems and generating hypotheses Descriptive = Focused on providing a detailed picture of the market Causal = Analyzes cause-and-effect relationships Secondary Data = Information that has already been collected and analyzed Signup and view all the answers

Cognitive dissonance occurs after the purchase when consumers feel satisfied with their decision.

False Signup and view all the answers

What is a key benefit of post-purchase service for firms?

Customer loyalty Signup and view all the answers

In order to calculate __________, firms need to differentiate between unit sales and monetary sales.

market share Signup and view all the answers

Match the consumer risk types with their descriptions:

Performance Risk = Concerns about how well the product will function Social Risk = Fear of negative social perception Psychological Risk = Impact on self-esteem or mental well-being Financial Risk = Concerns about the monetary cost of the purchase Signup and view all the answers

Which type of segmentation focuses on consumers' motivations and benefits sought?

Benefit Segmentation Signup and view all the answers

Reducing perceived risk is essential for creating consumer value.

True Signup and view all the answers

Name one strategy that firms can use to reduce perceived risk.

Guaranties, influencer promotions, free trials, or return/refund policies Signup and view all the answers

What is the first step in the consumer decision-making process?

Need Recognition Signup and view all the answers

Purchase decisions are solely based on consumer involvement.

False Signup and view all the answers

What do firms use to reduce perceived risks for consumers?

Guaranties, influencer promotions, free trials, and return/refund policies. Signup and view all the answers

Consumers may experience __________ after a purchase if their expectations are not met.

cognitive dissonance Signup and view all the answers

Match the types of segmentation with their descriptions:

Demographic = Based on attributes such as age, gender, income Psychographic = Based on lifestyle and personality traits Benefit = Based on the benefits sought by consumers Signup and view all the answers

Which of the following is a characteristic of good market segments?

Differential response Signup and view all the answers

Behavioral Decision Theory suggests that framing and context do not influence consumer decisions.

False Signup and view all the answers

To determine their market share, firms need to compare both __________ and monetary sales.

unit sales Signup and view all the answers

What is the primary purpose of market maps?

To visualize consumer perceptions of products Signup and view all the answers

Market research is only necessary for large firms.

False Signup and view all the answers

What type of market research is used to gather original data directly from consumers?

Primary research Signup and view all the answers

Firms position their products based on _____ attributes to create a unique market presence.

positioning Signup and view all the answers

Match the types of market research with their purposes:

Exploratory research = To understand underlying reasons and motivations Descriptive research = To describe market characteristics Causal research = To determine cause-and-effect relationships Secondary data = To use existing data for analysis Signup and view all the answers

Study Notes

Consumer Decision Making Process

Consumers identify a need (need recognition), gather information (information gathering), compare options (comparing alternatives), make a purchase (purchase), and evaluate their purchase (post-purchase evaluation).
Firms can motivate consumers to identify and recognize a need through various strategies.
Consumers collect information on product attributes (objective and subjective) from personal, commercial, public, and experiential sources.
Consumers rank preferences based on attribute importance, which can vary across individuals.
The actual buying decision (purchase) is influenced by consumer involvement and the firm's strategies to motivate purchase.
Consumers assess satisfaction (perceived performance vs. expectations) and may experience cognitive dissonance. Post-purchase service is crucial for customer loyalty.

Marketing Math and Environmental Analysis

Market share can be calculated in units or monetary value.
Profitability is assessed via profit margin ratios and break-even analysis.
Firms with strategic advantages (consumer and operational) are more likely to succeed and are more profitable.
Maintaining these advantages requires adapting to changing consumer preferences and environmental trends.
Sales and market share can be calculated in units or monetary value.
Profit margin ratios and break-even volumes are used to interpret profitability.
Firms with consumer and operational advantages are more profitable and secure.

Consumer Behavior and Perceived Risk

Consumers experience different types of risk (performance, social, psychological, financial).
Firms can alleviate risk through various methods (guarantees, influencer promotions, trials, return policies).
Behavioral decision theory highlights how framing and context influence decisions.
Reducing perceived risk is pivotal to enhancing consumer value.
Consumers experience performance, social, psychological, and financial risks when purchasing products.
Firms can mitigate risk by implementing guarantees, influencer promotions, product trials, and return policies.
Consumers' decisions are influenced by framing and context, as described by behavioral decision theory.
Reducing perceived risk enhances consumer value.

Segmentation Strategy

Segmenting the market helps identify target audiences, design products to match needs, and effectively communicate with those audiences.
Effective market segments are unique in their needs, accessible to reach, and potentially profitable.
Segmentation can be demographic, psychographic, or based on benefits.
In-depth market research is essential when selecting segments.
Segmentation goals include identifying target segments, designing products to fit their needs, and communicating effectively.
Good segments are unique in their needs, accessible, and have high potential.
Segmentation can be based on demographics, psychographics, or benefits.
Market research is essential for accurate segmentation decisions.

Positioning Strategy and Market Maps

Product positioning is determined by distinct product attributes.
Market maps visually represent consumers' perceptions of products.
Maps help identify optimal positioning and select target segments.
Product positions are determined by distinguishing attributes.
Market maps visually represent consumer perceptions of products.
Maps help choose optimal positions and target segments.

Market Research

Market research is crucial to address marketing issues, understand consumers, competitors, and environmental shifts.
Market research uses both primary (exploratory, descriptive, causal) and secondary data.
Research methods must be tailored to address specific marketing challenges and objectives.
Market research aids in resolving marketing issues, understanding consumers and competitors, and recognizing environmental nuances.
Primary and secondary data are used in various research types(exploratory, descriptive, causal).
Research methods are tailored to fit marketing challenges and objectives.

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Description

This quiz covers the consumer decision-making process, including need recognition, information gathering, and post-purchase evaluation. It also delves into marketing math, profit assessment, and the impact of environmental factors on consumer behavior. Assess your understanding of these critical marketing concepts and strategies.

Consumer Decision Making and Marketing Analysis

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Podcast

Questions and Answers

What are the main types of market research?

Market maps are used to visualize consumer perceptions of products.

Why is market research necessary for firms?

Firms utilize _____ attributes to position their products distinctly in the market.

Which part of the consumer decision-making process involves gathering data about product attributes?

Match the types of market research with their descriptions:

Cognitive dissonance occurs after the purchase when consumers feel satisfied with their decision.

What is a key benefit of post-purchase service for firms?

In order to calculate __________, firms need to differentiate between unit sales and monetary sales.

Match the consumer risk types with their descriptions:

Which type of segmentation focuses on consumers' motivations and benefits sought?

Reducing perceived risk is essential for creating consumer value.

Name one strategy that firms can use to reduce perceived risk.

What is the first step in the consumer decision-making process?

Purchase decisions are solely based on consumer involvement.

What do firms use to reduce perceived risks for consumers?

Consumers may experience __________ after a purchase if their expectations are not met.

Match the types of segmentation with their descriptions:

Which of the following is a characteristic of good market segments?

Behavioral Decision Theory suggests that framing and context do not influence consumer decisions.

To determine their market share, firms need to compare both __________ and monetary sales.

What is the primary purpose of market maps?

Market research is only necessary for large firms.

What type of market research is used to gather original data directly from consumers?

Firms position their products based on _____ attributes to create a unique market presence.

Match the types of market research with their purposes:

Study Notes

Consumer Decision Making Process

Marketing Math and Environmental Analysis

Consumer Behavior and Perceived Risk

Segmentation Strategy

Positioning Strategy and Market Maps

Market Research

Studying That Suits You

Description

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