Retailing and Consumer Behavior Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which type of retailing involves the sale of goods directly to consumers, with limited customer assistance?

Self-service retailing (correct)

Full-service retailing

Franchise retailing

Limited-service retailing

What is the primary focus of negotiation within the distribution channel?

Terms of exchange (correct)

Identifying buyers

Physical movement of goods

Promotion techniques

What does intensive distribution typically apply to?

Shopping goods

Convenience goods (correct)

Luxury goods

Specialty goods

Which of the following trends indicates a shift towards larger retail formats that dominate the market?

Rise of megaretailers Signup and view all the answers

Which retail format typically has very few dealers available in a geographic area?

Exclusive distribution Signup and view all the answers

Which of the following factors is NOT included in demographic segmentation?

Lifestyle Signup and view all the answers

In the context of low purchase involvement, which stage does NOT typically require extensive information search?

Evaluation of Alternatives Signup and view all the answers

What is a characteristic of convenience goods?

They are frequently purchased and are low-cost. Signup and view all the answers

What is the main characteristic of a 'New Buy' in business-buying decisions?

Supplier search is extensive. Signup and view all the answers

Which stage in consumer decision making is associated with high purchase involvement?

Evaluation Search Signup and view all the answers

Which pricing strategy involves setting prices based on the quality to cost ratio?

Value-based pricing Signup and view all the answers

What type of goods are specifically sought out, often requiring more effort to purchase?

Specialty Goods Signup and view all the answers

In the demand curve model, what typically happens to the quantity demanded when price decreases?

It increases. Signup and view all the answers

Which psychographic segmentation characteristic is defined by personal values and priorities?

Lifestyle Signup and view all the answers

What does the term 'skimming pricing' typically refer to?

Setting a high initial price to maximize profits from the start. Signup and view all the answers

What distinguishes a 'Modified Rebuy' from a 'Straight Rebuy'?

It indicates a change in product specifications. Signup and view all the answers

Which of the following is NOT a form of consumer product?

Industrial goods Signup and view all the answers

What is the primary focus of customer-centered new-product development?

Finding ways to solve customer problems. Signup and view all the answers

During which phase of consumer decision making is internal evaluation more prevalent?

Information Search Signup and view all the answers

Which pricing strategy is based on competitors' pricing?

Competition-based pricing Signup and view all the answers

Which type of goods requires more personal selling due to consumers not often thinking about them?

Unsought Goods Signup and view all the answers

What is the primary focus of marketing according to the American Marketing Association definition?

Creating, communicating, and delivering offerings that have value Signup and view all the answers

Which of the following is not one of the five marketing management orientations?

Consumer relationship concept Signup and view all the answers

In Maslow's Hierarchy of Needs, which term describes a person's basic physical requirements?

Needs Signup and view all the answers

What is the first step in the complete process of marketing segmentation, targeting, and positioning?

Identify bases for segmenting the market Signup and view all the answers

Which requirement is NOT essential for effective market segmentation?

Exhaustive Signup and view all the answers

What does geographic segmentation focus on?

Different geographical units like regions and cities Signup and view all the answers

What is Ansoff’s matrix used for in marketing?

Evaluating alternatives for strategic direction Signup and view all the answers

Which of the following variables is NOT a major segmentation variable?

Psycho-dynamic Signup and view all the answers

What does narrowcasting in marketing communications refer to?

Delivering tailored messages to specific segments Signup and view all the answers

Which promotional tool primarily focuses on building relationships with publics?

Public relations Signup and view all the answers

In the AIDA model, which stage directly follows 'Interest'?

Desire Signup and view all the answers

Which element of the promotional mix is characterized by short-term incentives to encourage purchase?

Sales promotion Signup and view all the answers

Which phase of the product life cycle typically involves heavy use of advertising and public relations?

Growth Signup and view all the answers

What is the primary role of direct marketing?

Encouraging immediate responses Signup and view all the answers

In the context of marketing communications and PLC, which strategy is best during the decline phase?

Limited sales promotion Signup and view all the answers

What is the main intention of the 'Attention' stage in the AIDA model?

To capture the customer’s awareness of the product Signup and view all the answers

Which of the following is NOT a function of marketing channels?

Brand loyalty Signup and view all the answers

What type of advertising is characterized as being paid, impersonal, and one-way?

Traditional advertising Signup and view all the answers

What is a characteristic of vertical marketing systems?

Producers, wholesalers, and retailers act as a unified whole. Signup and view all the answers

Which of the following is NOT a type of channel conflict?

Diagonal conflict Signup and view all the answers

Which of the following best describes a push strategy?

Manufacturers promote products to wholesalers and retailers. Signup and view all the answers

Which of the following sales force structures focuses on specific customer segments?

Customer (market) sales force structure Signup and view all the answers

What is primarily involved in consumer-oriented sales promotions?

Promotions aimed at the end-user or consumer. Signup and view all the answers

What is a primary advantage of a corporate vertical marketing system?

Single ownership and control minimize conflict. Signup and view all the answers

Which tool is considered a trade-oriented sales promotion?

Trade shows Signup and view all the answers

What type of brand strategy involves selling products under store or distributor names?

Private branding Signup and view all the answers

What occurs in a horizontal channel conflict?

Conflict develops among competitors at the same level. Signup and view all the answers

What is an example of a contractual vertical marketing system?

A franchise that adheres to agreed standards and practices. Signup and view all the answers

Study Notes

Marketing Definition

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing Management Orientations

The selling concept: Focuses on the factory, existing products, and selling/promoting to generate profits through sales volume.
The marketing concept: Focuses on the market, customer needs, and integrated marketing to generate profits through customer satisfaction.
- Production concept: Focus on production efficiency and availability.
- Product concept: Focus on product quality, features, and innovation.
- Selling concept: Focus on aggressive sales techniques.
- Marketing concept: Focus on customer needs and satisfaction.
- Societal marketing concept: Focus on customer needs and satisfaction, but with consideration for society's well-being.

Customer Needs, Wants, and Demands

Needs: Basic human requirements (e.g., food, shelter, safety).
Wants: Shaped by society and individual desires (e.g., gourmet coffee, luxury car).
Demands: Wants backed by purchasing power (e.g., desire for a luxury car, able to buy one).

Advertising Decisions - Setting Objectives

Informative advertising: Communicates customer value, builds brand image, explains new products/processes.
Persuasive advertising: Builds brand preference, persuades customers to purchase, convinces others about products.
Reminder advertising: Maintains customer relationships, reminds customers about the product, keeps brand in customer's mind.
- This also includes correcting false impressions, informing the market of price changes, and describing available services/support.

Evaluate Strategic Direction - Ansoff's Matrix

Present Product, Present Market = Market Penetration: Increase sales of existing products in existing markets.
Present Product, New Market = Market Development: Introduce existing products in new markets.
New Product, Present Market = Product Development: Develop new products for present markets.
New Product, New Market = Diversification: Develop new products for new markets.

Actors in the Microenvironment

Customers: Most important actors, aim is to serve target customers. The value delivered by the company is important.
Company: Internal operations and departments interact to create and maintain customer value.
Suppliers: Provide the parts and materials needed to make a product or service.
Marketing Intermediaries: (e.g., wholesalers, retailers, agents) help with distribution and sales.
Competitors: Other businesses offering similar products or services.
Publics: Groups that affect or are affected by a company's activities.

The Company's Macroenvironment

Factors like demographics, economic conditions, natural forces, technological changes, political/legal environments, and cultural forces shape customer and market behaviors. Changes should be considered when planning marketing strategies. Sustainability is important.

The Complete Process (Market Segmentation, Targeting, & Positioning)

Market Segmentation: Identify bases for segmenting the market, develop profiles of resulting segments.
Market Targeting: Develop measures of segment attractiveness, select the target segment(s).
Market Positioning: Develop positioning for each targeted segment, develop marketing mix for each target segment.

Requirements for Effective Segmentation

Measurable: Segment size and purchasing power can be measured.
Accessible: Segments can be effectively reached and served.
Substantial: Large and profitable enough to serve.
Differentiable: Respond differently to different marketing mix elements/actions.
Actionable: Effective programs can be designed for attracting and serving the segments.

Major Segmentation Variables

Geographic: Location, climate, population density.
Demographic: Age, gender, income, education, family size, occupation.
Psychographic: Values, lifestyle, personalities.
Behavioral: Usage, loyalty, occasions.

Geographic Segmentation

Dividing the market into units like nations, regions, states, counties, cities, or even neighborhoods.

Demographic Segmentation

Categories like age, gender, family size, family life cycle, income, occupation, lifestyle, education, religion, race, and generation are used.

Psychographic Segmentation

Based on factors like social class, lifestyle, and personality traits of people.

Types of Consumer Decision Making

Low Involvement: Problem recognition, evaluation search, purchase, and post-purchase (dissonance).
High Involvement: Problem recognition, information search, evaluation of alternatives, purchase, and post-purchase.

Types of Business-Buying Decisions

Straight Rebuy: Routine purchase of existing products.
Modified Rebuy: Existing products but with some changes.
New Buy: Completely new product or service.

Demand Curves

Inelastic demand: Quantity demanded changes slightly when price changes.
Elastic demand: Quantity demanded changes significantly when price changes.

Major Pricing Strategies

Price ceiling: No demand above certain price.
Price floor: No profits below certain price.
Internal and external considerations: Marketing objectives, market demand, competitors' strategies, and product costs.

Selected Pricing Strategies

Cost-plus pricing: Standard markup to cost.
Competition-based pricing: Going rate.
Value-based pricing: Value = Quality/Cost
EDLP(Every Day Low Pricing): Strategy to keep all prices at low levels.
Target Pricing: Setting prices so profits will meet objectives.
Segment Pricing: Different prices for different segments.
Bundling: Combining several items/products/services.
Penetration pricing: Low prices to encourage market share.
Skimming pricing: High prices to extract profits from early adopters—profits diminish as sales increase.

Break-even Pricing

Point where total cost equals total revenue ($0 profit).

Amazon Echo Case Study—Pricing Decisions

Calculate variable cost per unit , fixed costs, unit cost, markup price
Find break-even volume for $179 price point.

What is a Product?

Anything offered to a market for acquisition, use, or consumption to fulfill a want or need.

Consumer Products

Products bought by final consumers for personal use.

Classification of Consumer Goods

Convenience goods: Frequently bought, low cost, readily available (e.g., candy, newspapers).
Shopping goods: Items consumers compare based on quality, price, style, and features (e.g., furniture, clothing).
Specialty goods: Customers seek out specifically because of unique characteristics and brand identity (e.g., high-end cars, designer clothing).
Unsought goods: Unwanted except when a need arises (e.g., emergency medical services).

Services

Tangible and intangible activities, benefits, or satisfactions offered for sale.

Services Marketing

Intangibility: Services cannot be seen, tasted, felt, heard, or smelled.
Inseparability: Services cannot be separated from their providers.
Heterogeneity: Quality depends on who provides service.
Perishability: Services cannot be stored.

Customer-Centered New-Product Development

Focuses on finding solutions to customer problems and creating satisfying experiences.

Product Life-cycle Strategies

Graphically illustrates sales and profits based on time (introduction, growth, maturity, decline).

Integrated Marketing Communications

Adjusting communication models to the ever-changing customers and marketing strategies.

Promotional Mix

Public Relations: Building good relations with publics.
Personal Selling: Personal presentations by sales force.
Sales Promotion: Short-term incentives to encourage purchase.
Advertising: Paid, impersonal mass communication.
Direct Marketing: Direct, targeted communication.

AIDA Concept

Attention: Getting noticed.
Interest: Generating intrigue.
Desire: Arousing the customer's desire to have the product
Action: Convincing the customer to purchase.

Marketing Communications & PLC

Different strategies for advertising, PR, sales promotion, personal selling, and distribution at each stage of the product life cycle (introduction, growth, maturity, decline).

Channel Strategies

Direct Exchange: Manufacturer sells directly to customer.
With Intermediaries: Manufacturer uses wholesaler and retailer to deliver product.
Time Gaps: Delay between production and consumption (e.g., lead time).
Space Gaps: Distance between production and consumption.
Variety Gaps: Not enough options to produce certain products.
Quantity Gaps: Products not in large enough supply(quantity)
Information Gaps: Lack of awareness regarding products.

Types of Retailers

Self-service: Customers perform most of the selection and checkout.
Limited-service: Some services but the customer does checkout.
Full-service: Extensive services.
Specialty: Limited product lines and high service levels.
Department: Wide product lines.
Supermarket: Grocery items.
Convenience: Small selection, open at all hours.
Superstore: Wide range of products.

Wholesaling

Includes all activities in selling goods/services to those buying for resale or business use.

Supply Chain Management

Inbound logistics (suppliers to company), outbound logistics (company to resellers), and reverse logistics are part of the supply chain.

Retailing Trends & Developments

Growth of non-store retailing: Online/internet order placement (ecommerce).
Rise of Megaretailers: Combining several product lines in one large store like mass merchandisers or superstores.

Intensity of Distribution Levels

Intensive Distribution: Many outlets (e.g., convenience goods).
Selective Distribution: Fewer outlets (e.g., shopping goods).
Exclusive Distribution: Very few outlets (e.g., specialty goods).

Channel Conflict

Vertical Conflict: Between different levels of the channel (e.g., between manufacturers and retailers).
Horizontal Conflict: Between various businesses at the same level in a channel (e.g., retailers competing with each other).

Vertical Marketing Systems

Producer, wholesaler or other business owner, retailer, and customer act as a unified whole in order to satisfy customers' needs.

Vertically Integrated for Conflict Reduction

Administered systems, corporate systems, and contractual systems have common goals to avoid conflict.

Push Versus Pull Strategy

Push strategy: Encourage retailers to sell product (promotions given to retailers)
Pull strategy: Direct marketing to customers in order to sell product on their own initiative.

Sales Promotion Tools

Consumer Oriented (Pull): Samples, coupons, Price packs, premiums, awards, POPS, contests.
Trade Oriented (Push): Allowances, co-operative advertising, trade contests, POP materials, training programs, specialty advertising, trade shows.

The Nature of Personal Selling

Personal selling is the personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

Sales Force Strategy and Structure

Territorial: Salesperson to geographic territory.
Product: Salesperson specializes in a portion of products.
Customer (Market): Salesperson specializes in specific customers or industries.

Branding Decisions

Brand Sponsorship: Manufacturer, private brand, generic, hybrid.
Brand Strategies: Deepening the line / Mix, broadening the line / Mix, stretching the brand upward and downward.

Major International Marketing Decisions

Look at the global environment.
Deciding whether to go global.
Deciding which markets to enter.
Deciding how to enter the market.
Deciding on the global marketing program.
Deciding on the global marketing organization.

Deciding - How to Enter the Market

Exporting (indirect/direct)
Joint Venturing (Licensing, Contract Manufacturing, Management Contracting, Joint Ownership)
Direct Investment (Assembly facilities, Manufacturing facilities)

Deciding on the Global Marketing Program

Standardized global marketing: Uses the same marketing strategy and mix for international markets.
Adapted global marketing: Adjusts marketing strategy and mix elements to target markets.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on various retailing concepts and consumer behavior principles with this quiz. It covers topics such as distribution channels, demographic segmentation, and purchasing decisions. Perfect for business students looking to enhance their understanding of retailing.