Flashcards
Segmentation, branding, consumer behavior
Cards in this deck (142)
- 1Identify the stages of the buyer decision making processNeed recognition
Information search
Alternatives' evaluation
Purchase
Post purchase behavior - 2A need arises when there is a difference between the ........... and the ...........actual state
desired state - 3Three examples for positive and negative need recognition eachPositive- social approval, sensory gratification and intellectual stimulation
Negative- normal depletion, unsatisfied need, problem to be solved or avoided - 4What are the three main levels in Maslow's hierarchy of needsBasic
Psychological
Self-fulfilment - 5Define Maslow's psychological needsSafety- security
Love and belonging- Friends, family, intimate relationships - 6Define Maslow's self-fulfilment needsEsteem needs- accomplishment and prestige
Self-actualisation- Creativity and full potential - 7What are the three kinds of goods (product attributes) that consumers search for information about?Search goods
Credence goods
Experience goods - 8SCan be evaluated through direct experience before purchase e.g. clothes, stationary
- 9Experience goodsOnly evaluated after purchase and experience
- 10Credence goodsDifficult to evaluate even after experience due to a lack of knowledge
- 11What four key things are considered during the information search?Product attributes
Involvement and expertise
Experience and memory
Purchase situation - 12Four differences between high and low involvement goodsMore vs less attention; more v less post-purchase evaluation; greater v basic understanding of needs; slow vs quick decisions
- 13Involvement is the perceived .......... of the product or service to the consumer based on her needs, values and interestsrelevance
- 14What is the POFFS model of risksPhysical- will this harm me
Obsolescence- will this go out of style
Functional- will this do what it is meant ot
Financial- will this impact me financially?
Social- what will others think of this? - 15An .......... set is a ........ list of ......... brandsA evoked set is a mental list of acceptable brands
- 16Heuristics are mental ...................... during which the consumer attempts to ............... instead of ................Shortcuts
satsfice
optimize - 17After purchase, consumers evaluate their decision relative to their ............expectations
- 18What are the four types of post purchase reactionsSatisfaction
Dissatisfaction
Delight
Cognitive dissonance - 19Escalation of committmentAttempt to justify ongoing investment though costs may outweigh benefits based on prior investment
- 20.............. .............. is when the consumer is unsure of product performance relative to .................Cognitive dissonance
Expectations - 21Expectations of service .............. with repeat experienceRise
- 22Expectation of .............. decreases with repeat ...............Recovery
failures - 23What four factors affect repeat purchasePositive experience
Monogamous loyalty
Inertia or habit - 24Customer valueThe total physical and psychological costs of owning a product subtracted from the benefits of owning it over its lifetime.
- 25Reference groupsNormative- parents, teachers, siblings
Comparative- celebrities and sports star - 26Situational factors1. Time
2. Emotional
3. Motive
4. Nature of surroundings - 27What are the five groups in Maloney's diffusion of innovation graph?Innovators
Early Adoptors
Early majority
Late majority
Late mass - 28Personality CulturalEducation, age, occupation, feelings, experience, observation
Taboos, mores laws - 29Maloney's 16% ruleOnce 16% adoption of any innovation is reached, messaging must be changed from scarcity to social proof
- 30What are the three types of customer needs?Existing
Latent
Incipient - 31SegmentationDividing up a larger market into smaller target markets with similar needs or desires that will respond to product offerings and initiatives
- 32What are the four types of market segmentationGeographic
Demographic
Psychographic
Behavioral - 33Geographic segmentationlocation, country/city, urban/rural, language, climate, population, size, region, market density
- 34Demographic segmentationage, gender, job, income, marital, social status, education, culture, religion
- 35Psychographic segmentationlifestyle, personality, values, concerns, attitudes
- 36Behavioral segmentationReadiness to purchase, usage rate, benefits v problems, intent, occasion, engagement, product knowledge
- 37Three reasons to segment• Optimize resource allocation
• Identify repositioning efforts
• Identify new product opportunities - 38Principles of effective segmentation• Homogenous within segments
• Heterogenous between segments
• Profitable
• Operational, measurable, actionable, accessible - 39What different types of targeting exist?Mass
Differentiated
Niche
Micro - 40Mass targetingEntire target market instead of one segment
Single marketing mix - 41Differentiated segmentingDifferent segments
Different marketing mixes - 42NicheOne marketing mix
Effective for small companies
Can pigeon-hole
All efforts on one defined specific market segment - 43Four types of costsSearch cost
Set-up cost
Maintenance cost
Financing cost
Exit cost - 44Search costInformation availability, accessibility and credibility
- 45Exit costReplacement
Contracts
Penalty/ Fine - 46Maintenance costsservice/ repair
- 47How does customer value create long-term firm valueLoyalty- premium prices
Increased volume of purchase - 48Three factors of a value driven organisationValue driven strategy
Good leadership
Market oriented - 49Value driven strategyBased on understanding of context, competitors, customers
- 50Market-oriented cultureEveryone in the organisation understands their role in delivering value proposition.
- 51Market orientationGenerate organisation- wide market intelligence
Dissemination of information among organisation
Responding to information - 52How to generate market- wide intelligence?Market research- focus groups
Market observation
Competitive intelligence
Organisational memory - 53How is information disseminated?Job rotation
Databases
Internal reporting - 54How should a market oriented organisation respond to information?Strategy, plans and innovation
- 55Three components of a market oriented cultureCustomer orientation
Competitor orientation
Inter functional orientation - 56Marketing myopiaFirms’ short- sightedness causing too narrow a definition of business, competitors, market opportunities.
- 57How can the product be used to create value?New product
Quality
Value co creation
Augmented product with extra features - 58PlaceSelecting channels and channel controls
Complementarity - 59Price and value creationValue based pricing
Consumer pricing - 60Relationship management and value creationCompetence, reliability, communication
- 61Image and value creationCompany/brand reputation, promotion, publicity.
- 62Support servicesDistribution, installation, training, maintenance, consulting, information management.
- 63Support servicesDistribution, installation, training, maintenance, consulting, information management.
- 64Logic of relationship marketingMarket failure recognition
Consumer behaviour understood
Value chain understood
Consumer retention economics - 65What is a market failure?Customer switching costs- low
Information failure- more transparency, more trust, more loyalty
Manufacturer idiosyncratic investment
Monopoly power- ? - 66Define the rational decision making modelRational- consistent, value-maximising choice .
- 67Sunk cost fallacyDone it now, might as well
- 68Bounded rationality• People satisfice, not optimize
• Unaware of sub-optimal decisions
• Essential features extracted, simplified
• Limited information processing capacity - 69Improved understanding of value chain• Understanding effect of other stakeholders in creating customer value
Eg: Suppliers, employees, competitors and middlemen - 70Economics of customer loyaltyNet promoter score (NPS)- gauges loyalty of company’s customer relationships, which correlated with revenue growth.
Consumer loyalty more profitable in some industries than others - 71Profitability of relationship increases with time as customer:• Buys more
• Buys at slightly higher price
• Costs less to service customer
• More likely to refer - 72The three types of customersDesired
Break-even
Costly - 73Why customer leaves?Dies
Defection
Dissatisfaction with service/ service failure - 74Customer disregardTedious complaint procedures
Slow, grudging response.
Poor customer information management
Blames customer
Many escape clauses - 75Types of loyaltyTrue loyalty
Latent loyalty
Occasional loyalty
No loyalty - 76What is the customer loyalty ladder?Prospect -- Customer -- Client --Supporter-- Advocate -- Apostle/Partner
- 77ApostleHighly satisfied, willing to pay and repeat purchase, active referrals
- 78Customer response zones• Zone of pain- poor scenario
• Zone of satisfaction- expectations not met or met
• Zone of delight- expectations met highly or exceeded - 79Loyalty programs- why not?• Genuine loyalty result of long-term, personal, emotional level.
• Loyal customers less likely to defect.
• More likely to refer.
• Point based loyalty programs only command loyalty up to a point
• These can be easily be replicated; genuine loyalty cannot. - 80How companies delight customersEmpathy/ courtesy
Moments of truth
Novelty/ entertainment
Unanticipated value - 81Three types of needsExisting
Latent
Incipient - 82Why study consumer behaviour• Identify targets and segments
• Identify latent needs
• How consumers perceive brands/stores
• How attitudes may be changed - 83Involvement• Perceived relevance of product to consumer based on needs, values and interests
• Functional, financial, social, physical, obsolescence risk
• Direct and vicarious experience
• Purchase situation- pressure - 84Repeat purchase• Result from positive experience
• Monogamous loyalty: 100% loyalty to one brand v Polygamous loyalty: brand switching
• Inertia and habit
• Increased perceived switching costs - 85MarketingActivities, institutions and processes for creating, communicating and delivering offerings that have value for consumers, clients, partners and society
- 86Micro- single segment• Limit customers into very small segments, even individually
• target audience more specifically
• Uses data mining, algorithms to search user’s personal/ behavioral data
• Used to develop product/ service that satisfies specific customer requirements
• Penetrates market niche, increasing market share, leads to brand loyalty
• Caution advised- segmentation cannot substitute for lack of innovation - 87Brand equityCommercial value derived from customer perception of brand name of product or service versus product or service itself.
- 88What are the three main functions of brand equity?Sales growth/ Incremental attraction
Cost advantage
Sustainable price premium - 89Incremental attraction through brand equityEasier to attract new customers
Less affected by competition
Easier to extend product line
Easier to expand globally - 90Cost advantage of brand equityMore leverage over distribution channels
More of the money spent on advertising will translate to sales - 91Sustainable price premium as a result of brand equityMore loyalty so easier to charge premium prices
- 92What is the COCHIEG model of the role of brands from a consumer behavioural perspective?Continuity- familiarity
Optimization- best quality
Characterisation- self image
Hedonistic- Pleasure seeking
Identification- more visible, stand out, make sense of identity
Ethical
Guarantee- of same quality - 93PositioningFirms develop set of offering characteristics that result in favourable and meaningful comparisons relative to competitor’s offerings.
- 94Brand identityMeaning, position and goals of brand. It is a cohesive organisational structure created around the brand's objective
- 95Brand imageGeneral impression of product held by potential consumers
- 96Brand ................. -- Brand ................ - Brand ..............Identity
Image
Equity - 97What are the five components of a brand's image?Brand awareness
Strength of brand associations
Favorability of brand associations
Uniqueness of associations
Product related attributes - 98What are the two types of experience that may be relied on during the consumer decision making process?Direct
Vicarious - 99What three features of a reference group increases their power?Credible
Attractive
Powerful - 100What are the three main factors that influence a purchase decision?Personality traits
Situational factors
Cultural and social influences - 101What situational factors impact a person's purchase decision?Mood
Surroundings
Time
Reason for purchase - 102What cultural and social factors impact the buyer's decision?Taboos, customs, mores, school and parents, laws.
- 103Brand imageStrength
Uniqueness
Favourablity of associations
Level of awareness - 104Brand awareness componentsDepth- likelihoods
Breadth- variety of purchase situations - 105Strength of brand awarenessHow extensively the info is processed. How thoroughly the consumer knows about brand attributes and benefits
- 106What is a brand benefit?Personal relevance
Meaning - 107What are the three product related attributesFunctional- attributes
Experiential- sensory and cognitive
Symbolic- social approval, personal expression, self-esteem - 108Non product related attributesFeelings
Personality
Imagery - 109ingredient brandingPolicy concerning branded object e.g. Teflon
- 110Three levels of productCore
Expected
Augmented - 111CoreMinimal customer requirements- the basic thing offered
- 112ExpectedBrand name, design, features, quality, Packaging
- 113Augmented productDelivery
After sale
Warranty
Support - 114DeclineLaggards
Declining profits and competitors
Cut back on ads and promotions
Lower prices
Basic product maintained, cutting back and withdrawing
More selective distribution - 115What are the three types of customer needsExisting
Latent
Incipient - 116Latent needsInnovation and profitability, market research necessary
- 117Advantages of segmentation?Optimize resource allocation
Identify re-positioning opportunities
Identify innovation opportunities - 118Success in one segment provides the opportunity toEnter another
- 119Competition and segmentationMarkets not serviced by competitors
Consider segmentation approaches of competitors - 120What are the three attitudinal personal traits that affect one's purchase decisionCognitive- thoughts
Affective- preferences
Conative- behaviour - 121What personality traits affect buying behavior?Beliefs
Personality - 122Why loyalty?Much harder to win back a customer or to win over a new customer than to keep an existing customer
- 123Costly customersMore expensive to service, fewer profits, diminishing returns
- 124How to get customers up the loyalty ladder?Delight
Surprise
Personalised service and high quality of service - 125ApostleChampioning, Positive word of mouth
- 126Customer response zoneZone of pain
Zone of satisfaction
Zone of delight - 127Four problems of service marketingIntangibility
Inseparability
Variability
Perish-ability - 128Servicescape dimensionsAmbience
Crowd
Cleanliness
Layout
Sensory cues - 129Inseparability in serviceProduction, consumption happens at the same time; cannot take something back
- 130Moments of truth in serviceFleeting touchpoints and interactions between the customer and service provider
- 131FMOT SMOT TMOT ZMOT ActualFMOT- first confrontation
SMOT- when you purchase and use
TMOT- feedback, WOM, reaction
ZMOT- Research
Acutal- disparity between purchase and deliverty - 132Customer JourneyProcess, subjective from moment of information to purchase acquisition
- 133VariabilityHigh degree of human interaction from one employee to another and one customer to another
- 134PerishabilityServices cannot be served or inventoried
There are fluctuations in demand but not in supply - 135Additional elements of marketing mixPhysical evidence- environment
Participants
Process - 136physical evidenceEnvironment in which the service is assembled and where the firm and customer interact
Tangible - 137Why invest in CSRFinancial- brand image, reputation, brand equity, value for employees and consumers
Moral- because it is the right thing to do
Altruistic- To contribute to the common good - 138CSR and consumer decision makingConsumers pay a small not large premium for ethical
- 139Macro CSR Micro CSRMacro- broader economic, institutional, political, societal contexts
Micro- individual beliefs and perceptions that underlie CSR practices - 140Four dimensions of product qualityConformance
Durability
Aesthetics
Reliability - 141Service marketing beyond rules and procedureDevelop and remunerate employees to gather information, measure performance, identify unhappy customers, find root causes, imrprove processes
- 142—
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- Marketing Flashcards on Segmentation, branding, consumer behavior , created by Pavani A on 26/05/2019.
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- Pavani A
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