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Marketing Test 2
Marketing Test 2
MARKETING TEST 2
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MARKETING TEST 2
Brand personality- the specific mix of human traits that may be attributed to a particular brand
Lifestyle- a persons pattern of living in the world as expressed in activities, interests, and opinions
Multitasking- doing two or more things at the same time
Core values- the belief systems that underlie consumer attitudes and behavior and that determine peoples choices
and desires over the long term
o Motive- a need aroused to a sufficient level of intensity to drive us to act
o Perception- the process by which an individual selects, organizes, and interprets information inputs to create a
meaningful picture of the world
o Selective attention- the mental process of screening out certain stimuli while noticing others
o Selective distortion- the tendency to interpret product information in a way that fits consumer perceptions
o Selective retention- good points about a product that consumers like are remembered and good points about
competing products are forgotten
o Subliminal perception- receiving and processing subconscious messages that affect behavior
o Learning- changes in an individuals behavior arising from experience
o Drive- a strong internal stimulus impelling action
o Cues- stimuli that determine when, where, and how a person responds
o Discrimination- the process of recognizing differences in sets of similar stimuli and adjusting responses
accordingly
o Hedonic bias- when people have a general tendency to attribute success to themselves and failure to external causes
o Short-term memory (STM)- a temporary reposition of information
o Long-term memory (LTM)- a permanent repository of information
o Associative network memory model- a conceptual representation that views memory as consisting of a set of
nodes and interconnecting links where nodes represent stored information or concepts and links represent the
strength of association between this information or concepts
o Brand associations- all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so
on, that become linked to the brand node
o Memory encoding- how and where information gets into memory
o Memory retrieval- how and from where information gets out of memory
o Marketing partitioning- the process of investigating the hierarchy of attributes consumers examine in choosing a
brand I they use phased decision strategies
o Belief- a descriptive thought that a person holds about something
o Attitudes- a persons enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward
some object or idea
o Expectancy-value model- consumers evaluate products and services by combining their brand beliefspositive
and negativeaccording to their weighted importance
o Heuristics- rules of thumb or mental shortcuts in the decision process
o Noncompensatory models- in consumer choice, when consumers do not simultaneously consider all positive and
negative attribute considerations in making a decision
o Conjunctive heuristic- the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first
alternative that meets the minimum standard for all attributes
o Lexicographic heuristic- a consumer choosing the best brand on the basis of its perceived most important attribute
o Elimination-by-aspects heuristic- situation in which the consumer compares brands on an attribute selected
probabilistically and brands are eliminated if they do not meet minimum acceptable cutoff levels
o Consumer involvement- the level of engagement and active processing undertaken by the consumer in responding
to a marketing stimulus
o Availability heuristic- when consumers base their predictions on the quickness and ease with which a particular
example of an outcome comes to mind
o Representativeness heuristic- when consumers base their predictions on ho representatives or similar an outcome
is to other examples
o Anchoring and adjustment heuristic- when consumers arrive at an initial judgment and then make adjustments of
their first impressions based on additional information
o Mental accounting- the manner by which consumers code, categorize, and evaluate financial outcomes of choices
o Prospect theory- when consumers frame decision alternatives in terms of gains and losses according to a value
function
Summary:
o Consumer behavior is influenced by three factors: cultural (culture, subculture, and social class), social (reference
groups, family, and social roles and statuses), and personal (age, stage in the life cycle, occupation, economic
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MARKETING TEST 2
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circumstances, lifestyle, personality, and self-concept). Research into these factors can provide clues to reach and
serve consumers more effectively
Four main psychological processes that affect consumer behavior are motivation, perception, learning, and memory
To understand how consumers actually make buying decisions, marketers must identify who makes and has input
into the buying decision; people can be initiators, influencers, deciders, buyers, or users. Different marketing
campaigns might be targeted to each type of person
The typical buying process consists of the following sequence of events: problem recognition, information search,
and evaluation of alternatives, purchase decision, and post purchase behavior. The marketers job is to understand
the behavior at each stage
Consumers will not necessarily go through the buying process in an orderly fashion and make skip and reverse
stages and alternative between going online and offline
The attitudes of others, unanticipated situational factors, and perceived risk may all affect the decision to buy, as will
consumers levels of postpurchase product satisfaction, use and disposal, and the companys actions
Consumers are constructive decision makers and subject to many contextual influences. They often exhibit low
involvement in their decisions, using many heuristics as a result
MARKETING TEST 2
Fewer, larger buyers
Derived demand
Close supplier-customer
Inelastic demand
relationship
Fluctuating demand
Professional purchasing
Geographically concentrated
Multiple buying influences
buyers
Multiple sales calls
Direct purchasing
Three types of buying situations
Straight rebuy- purchasing department reorders items like office supplies and bulk chemicals on a routine
basis and chooses from suppliers on an approved list
Modified rebuy- change product specifications, prices, delivery requirements, or other terms
New task- buys a product or service for the first time
Electronic marketplaces companies purchases from online
Catalog sites
Private exchanges
Vertical markets
Barter markets
Pure Play auction company
Buying alliances
Spot (or exchange) markets
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o CHAPTER 8: TAPPING INTO GLOBAL MARKETS
Definitions:
o Global industry- an industry in which the strategic positions of competitors in major geographic or national
markets are fundamentally affected by their overall global positions
o Global firm- a firm that operates in more than one country and captures R&D, production, logistical, marketing,
and financial advantages in its costs and reputation that are not available to purely domestic competitors
o Joint venture- a company in which multiple investors share ownership and control
o Straight extension- introducing a product in a foreign market without any change in the product
o Product adaptation- altering the product or meet local conditions or preferences
o Product invention- creating something ne via product development or other means
o Backward invention- reintroducing earlier product forms that can be well adapted to a foreign countrys needs
o Forward invention- creating a new product to meet a need in another country
o Communication adaption- changing marketing communication programs for each local market
o Dual adaptation- adapting both the product and the communications to the local market
o Price escalation- an increase in the price of a product due to added costs of selling it in different countries
o Transfer price- the price a company charges another unit in the company for goods it ships to foreign subsidiaries
o Dumping- situation in which a company charges either less than its costs or less than its charges in its home market
in order to enter or win a market
o Arms-length price- the price charged by other competitors for the same or a similar product
Summary:
o Despite shifting boarders, unstable governments, foreign-exchange problems, corruption, and technological pirating,
companies selling in global industries need to internationalize their operations
o Upon deciding to go abroad, a company needs to define its international marketing objectives and policies. It must
determine whether to market in a few or many countries and rate candidate countries on three criteria: market
attractiveness, risk, and competitive advantage
o Developing countries offer a unique set of opportunities and risks. The BRICS countriesBrazil, Russia, India,
China, and South Africaplus other significant markets such as Indonesia are a top priority for many firms
o Modes of entry are indirect exporting, direct exporting, licensing, joint ventures, and direct investment. Each
succeeding strategy entails more commitment, risk, control, and profit potential
o In deciding how much to adapt their marketing programs at the product level, firms can pursue a strategy of straight
extension, product adaptation, or product invention. At the communication level, they may choose communication
adaption or dual adaptation. At the price level, firms may encounter price escalation, dumping, gray markets, and
discounted counterfeit products. At the distribution level, firms need to take a whole-channel view of distributing
products to the final users. Firms must always consider the cultural, social, political, technological, environmental,
and legal limitations they face in other countries
o Country-of-origin perceptions can affect consumers and businesses alike. Managing those perceptions to best
advantage is a marketing priority