Essay About Consumers Needs And Product Comparisons

Marketing 124 Cheat Sheet
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Chapter 1                                                                                                             Key assumption of marketing concept-a company must determine the needs and wants of specific target markets and satisfy consumers needs better than the competition–The essence of marketing consists of satisfying consumers’ needs, creating value, and retaining customers.                                                                                                 Social marketing concept-To understand how the Internet and related technologies improve marketing transactions by adding value that benefits both marketers and customers.                                     Impact of advertising to online users/ consumer generated content- Specialized information exchanges and cookies-Consumer access to information; product comparisons- Interactive and novel communication channels-customizing products and promotional messages -Better prices and distribution                                      Consumer value- Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits       Costumer satisfaction- An individuals perception of the performance of a product or service in relation to ones expectations              Costumer retention- Loyal customers are key…They buy more products, They are less price sensitive, Servicing them is cheaper, They spread positive word of mouth…The objective of providing value is to retain highly satisfied customers.                                                 Chapter 2                                                                                                       Target market characteristics- a market segment must be: Identifiable, Sizeable, Stable and growing, Reachable, Congruent with the marketer’s objectives and resources                                          Behavioral data is evidence-based; it can be determined from direct questioning /observation categorized using measurable criteria, such as demographics, and consists of: 1. Consumer-intrinsic: factors, such as a person’s age, gender, marital status, income, and education. 2. Consumption-based:  factors, such as the quantity of product purchased, frequency of leisure activities, or frequency of buying a given product.                                                                                    Cognitive factors are abstracts that “reside” in the consumer’s mind, can be determined only through psychological and attitudinal questioning, and generally have no single, universal definitions. It consists of: 1. Consumer-intrinsic: factors, such as personality traits, cultural values, and attitudes towards politics and social issues.2. Consumption-specific attitudes and preferences, such as the benefits sought in products and attitudes regarding shopping.           Demographic segmentation- Demographics are the core of almost all segmentation because they are easy and logical. they are a cost-effective way to reach segments and demographic shifts are easier to identify than other types of shifts. Income, education, and occupation tend to tie together and lead to segmentation based on social class. Psychographics- Consumers’ lifestyles, which include consumers’ activities, interests, and opinions                                                              Benefit segmentation is based on the benefits that consumers seek from products and services. The benefits that consumers look for represent unfilled needs, whereas buyers’ perceptions that a given brand delivers a unique and prominent benefit result in loyalty to that brand. Marketers of personal care products, such as shampoos, soaps, and toothpastes, create different offerings designed to deliver specific benefits.                                                                                                     Usage rate segment- Usage rate – In residential or commercial segment, the usage can be demonstrated in the form of heavy usage, moderate usage or lesser usage. Lets take the example of beauty parlors or personal care. There are some customers who use a lot of personal care products whereas others do not use personal care products much. Thus depending on their usage the customers can be targeted.                                                                                                          The driving force within individuals that impels them to action is known as Motivation                                                                     Motivation is produced by a state of tension, which exists as the result of unfulfilled needs                                                                            Physiological needs are innate(biogenic) and fulfilling them sustains biological existence. They are the need for food, water, air, protection of the body from outside environment (clothing and shelter), and sex.  Psychological needs are learned from our parents, social environment, and interactions with others they include the needs for self-esteem, affection, power, learning, and achievement.              Goals are the sought-after results of motivated behavior, and all human behavior is goal oriented.   There are two types of goals: Generic goals are outcomes that consumers seek in order to satisfy physiological and psychological needs. Product-specific goals are outcomes that consumers seek by using a given product or service.  When a consumer states they want a pair of jeans, they have stated a generic goal.  When they announce they really want a pair of Calvin Klein jeans, then they have stated product-specific goals.The motivation to select goals can be either positive or negative. We may feel a driving force toward some object or condition or a driving force away from some object or condition. Positive outcomes that we seek are called approach objects; negative outcomes that we want to prevent are called avoidance objects.                                                  safety and security needs (physical safety, order, stability, routine, familiarity, and control over one’s life and environment) become the driving force behind an individual’s behavior. The third level of Maslow’s hierarchy consists of social needs, such as love, affection, belonging, and acceptance. When social needs are more or less satisfied, egoistic needs (inwardly directed: needs for self-acceptance, self-esteem, success, independence, and personal satisfaction; outwardly directed:  needs for prestige, reputation, status, and recognition from others) become operative. The fifth level, self-actualization need, refers to an individual’s desire to fulfill his or her potential—to become everything that he or she is capable of becoming.                                                                                                      Trio of needs: power, affiliation, achievement                                   Personality: The inner psychological characteristics (the specific qualities, attributes, traits, factors, and mannerisms that distinguish one individual from other individuals) that both determine and reflect how we think and act.                                                                        According to Freud, human personality consists of these three systems, the id, super ego and the ego.  The Id is the “warehouse” of primitive drives, basic physiological needs such as hunger, thirst, and sex.  The superego drives the individual to fulfill their needs in a socially acceptable function.  Finally, the ego is the internal monitor that balances the needs of the id and the superego.                         These relationships are formed to reduce feelings of inferiority (Adler) or tension (Sullivan).  Furthermore, people can be classified as to how they interact with others – are they compliant, aggressive, or detached (Horney).  A compliant individual desires attention, an aggressive desires admirations, and a detached person desires independence and freedom from obligation.  What is particularly interesting is how research has shown that these different personality groups differ in their brand usage.                                                           Levels of innovativeness 1. Global innovativeness—a trait that exists independent of any product-related context and represents the “very nature” of consumers’ innovativeness 2. Domain-specific innovativeness—a narrowly defined activity within a specific domain or product category 3. Innovative behavior—actions or responses that indicate early acceptance of change and adoption of innovations (e.g., being among the first to purchase new and different products or services).Dogmatism is one’s degree of rigidity—the opposite of being open-minded—toward information and opinion contradictory to one’s beliefs and views (i.e., closed-mindedness).  Dogmatic individuals are less likely to be innovators. Social character describes an individual’s inner or other-directedness.  Inner-directed consumers rely on their own inner values or standards in evaluating new products and are likely to be consumer innovators. Conversely, other-directed consumers look to others for guidance as to what is appropriate or inappropriate and are unlikely to be consumer innovators. Need for uniqueness is defined as an individual’s pursuit of differentness relative to others that is achieved through the acquisition of consumer goods in order to enhance one’s personal and social identity.                                                                                        Fixated consumption refers to collectors’ and hobbyists’ tendency to accumulate items that are related to their interests. Fixated consumers share the following characteristics:1. A passion for and interest in the category of what they collect. 2. Willingness to invest a lot of effort in adding to their collections. 3. Spending a lot of time and discretionary income searching and buying more items for their collections. 4. Aggressively competing in auctions.                                                                                             Consumer behavior researchers identified four components of self-image 1. Actual self-image is the way consumers see themselves; 2. Ideal self-image is how consumers would like to see themselves; 3. Social self-image is how consumers feel others see them; and 4. Ideal social self-image is how consumers would like others to see them.        Chapter 4                                                                                                     Perception- The process by which individuals select, organize, and interpret stimuli into a meaningful and coherent picture of the world absolute threshold. The point at which a person can detect a difference between “something” and “nothing” is that person’s absolute threshold for that stimulus.                                         Differential threshold- The minimal difference that can be detected between two similar stimuli                                                                 Sensory adaptation is becoming accommodated to a certain level of stimulation and becoming less able to notice a particular stimulus.  Marketers care because consumers stop paying attention to their communications when they adapt to them.                                          Webers law states that the ratio of the increment threshold to the background intensity is a constant. So when you are in a noisy environment you must shout to be heard while a whisper works in a quiet room. And when you measure increment thresholds on various intensity backgrounds, the thresholds increase in proportion to the background. (IDK WHAT THIS IS LOL)                                                  Selective exposure occurs when consumers tune/seek out messages that they find pleasant or with which they are sympathetic, and they actively avoid painful or threatening ones. They also selectively expose themselves to advertisements that reassure them of the wisdom of their purchase decisions.                                                Selective attention is consumers’ heightened awareness of stimuli that meet their needs or interests and minimal awareness of stimuli irrelevant to their needs. Thus, consumers are likely to note ads for products that would satisfy their needs and disregard those in which they have no interest                                                                               Figure and ground refers to the interrelationship between the stimulus itself (i.e., figure) and the environment or context within which it appears (i.e., ground).  Contrast is an application of figure and ground.  Product placement tries to obscure the difference between figure and ground.                                                                             Grouping refers to people’s instinctive tendency to group stimuli together so that they become a unified picture or impression. The perception of stimuli as groups or chunks of information, rather than as discrete bits of information, facilitates memory and recall.          Closure is people’s instinct to organize pieces of sensory input into a complete image or feeling. Individuals need closure, which means that if they perceive a stimulus as incomplete, they are compelled to figure out its complete meaning. If a message they receive is incomplete, they consciously or subconsciously fill in the missing pieces (like answering the questions in the ad shown in Figure 4.10).  Perceived risk- The degree of uncertainty perceived by the consumer as to the consequences (outcome) of a specific purchase decision. The first, functional risk, deals with the risk that the product will not perform as expected.  Physical risk is the risk to self and others.  Financial risk is that the product will not be worth its cost and social risk is that the choice of the product might lead to social embarrassment.  Psychological risk is that a poor product choice will hurt the consumers ego and time risk is that the time has been wasted in purchasing this product.                                                    Chapter 16                                                                                             Secondary data – Existing information that was originally gathered for a research purpose other than the present research                                                                           Qualitative research- :Rejects idea that consumers are rational decision makers :Motivational researchers – consumers either unaware/unable to express motives :Small sample sizes – not generalizable to population :Ideal for initial ideas (promotional campaigns, products, positioning) Depth interviews provide important information for targeting, positioning, and product redesign.  They can be as short as 20 minutes or last up to an hour.  The interview is often recorded, either with video or audio recordings so that the interviewer can play it back or transcribe the session to have all the details.  To get the most from the subject, an interviewer will usually ask probing questions in order to gain more insights from the subject.                    focus group uses a small group of subjects for the research.  Some researchers favor this approach because the respondents interact with each other and build off of each other’s comments.                                                     Quantitative Research Acceptance of products, brands, promotional messagesCapture satisfaction/unmet needsPredict future needs or behaviorExperimentation, surveys, observationDescriptive and empirical; can be generalized if appropriate sample                                                                                 Experiments (causal research) identify cause-and-effect relationships among factors. For instance, it is possible to test the relative sales appeal of many types of variables, such as package designs, alternative price points, or different promotional offers, by experiments designed to identify cause and effect.                                           test marketing. Sometimes, even after conducting depth interviews, focus groups, and survey research, the marketing firm realizes that it still needs to secure additional real-world feedback for a new product, service, or marketing communications program that it is considering, before it commits itself to a full-scale marketing rollout                                                                    Likert scale is the most popular form of attitude scale because it is easy for researchers to prepare and to interpret, and simple for consumers to answer. They check or write the number corresponding to their level of “agreement” or “disagreement” with a series of statements. semantic differential scale, like the Likert scale, is relatively easy to construct and administer.  The scale typically consists of a series of bipolar adjectives (such as “good/bad,” “hot/cold,” “like/dislike,” or “expensive/inexpensive”) anchored at the ends of an odd-numbered (e.g., five- or seven-point) continuum.      behavior intention scale measures the likelihood that consumers will act in a certain way in the future, such as buying the product again or recommending it to a friend.