Business Midterm

Business Midterm

1. Product Motives: the reasons why consumers buy particular products and brands

   • Emotional
     • The consumer makes a decision without considering the arguments for or against.
       • Prestige, conformity, pleasure, individuality and creativity are appeals that can be used to stimulate emotional purchasing.
   • Rational
     • The customer seeks to purchase an item or brand by analyzing the advantages of the purchase
       • Factors considered include economy of operation, economy of purchase, safety features, dependability and convenience
   • Primary
     • Motives which cause an individual to buy a certain kind of classification of a product category.
       • These purchases are made by the customer in order to solve a particular problem
   • Conscious
     • Represents those desires that are clearly experienced by the consumer without being aroused through retailers marketing strategy.
       • In order to capitalize on these desires, retailers must avoid out of stock situations (be effective with buying and inventory controls).
   • Dormant
     • Represent those desires that are unrecognized by buyers until brought to their attention through the retailers strategy
       • This is the greatest opportunity for the retailer to increase sales per square foot
   • Selective
     • Exercised when consumers select an item from within the classification of items presented

2. Different types of Goods

   • Convenience
     • Merchandise that is purchased frequently, with a minimum amount of effort and is usually fairly inexpensive
   • Shopping
     • Goods the consumer shops for by comparing price, quality, style, fabric, colour or other selection factors that the buyer deems important. The consumer is deliberate in planning the purchase, exerts effort in making comparisons, prior to selections and spends more money on it.
       • Brand loyalty is not extremely relevant
   • Specialty
     • Merchandise that the consumer exerts a considerable amount of effort to attain due to some unique characteristics or selection factor.
       • Brand preferences are very high. Examples include designer label fashion, gourmet or health food and specialized photography equipment.

3. Research

   • Marketing Research
     • The systematic gathering, recording and analyzing of data about problems relating tot he marketing of goods and services
     • Techniques
       • The survey
       • The historical method (looking through sales records and financial statements)
       • Observational Method: using raw data that is observed during an event
       • Experimental Method: a study with controlled conditions except for the one factor being studied
   • Motivation Research
     • The study of why consumers act as they do
     • Attempts to uncover the consumers attitudes and feelings
       • Often the consumer may not be aware of these feelings and even if he/she is, may not wish to or be able to talk about them