MKTG 315 Study Guide - Fall 2018, Comprehensive Midterm Notes - Time, The Npd Group, Russia
MKTG 315
MIDTERM EXAM
STUDY GUIDE
Fall 2018
MKTG 315 – 002
28 August 2018
Lecture 1: Chapter 1: Introduction to Consumer Behavior
Consumer Behavior – the behavior that consumer display in
searching for
,
purchasing
,
using
,
evaluating
, and
disposing
of products and services that they expect will satisfy
their needs (all decision involving
time and money
).
Consumer Behavior and Consumption
I. Consumer behavior – set of value-seeking activities that take place as people go
about addressing their real needs.
II. Consumption – Process by which consumers use goods, services, or ideas and
transform the experience into value.
a. A want is a specific
desire
that spells out a way a consumer can go about
addressing a recognized need
b. An exchange is the acting out of a decision to give something up in return
for something perceived to be of greater value.
c. Costs are the negative results of consumption experiences.
d. Benefits are the positive results of consumption experiences.
e. These reactions involve thoughts and feelings. Ultimately, the process
results in a perception of value.
f. Consumption is a value-producing process in which the marketer and the
consumer interact to produce value.
Market Orientation
I. Market Orientation – Organizational culture that focuses on consumer needs and
embodies the importance of creating value for customers among all employees.
II. Competition drives companies toward a high degree of consumer orientation
a. Consumer Orientation: Way of doing business in which the actions and
decision making prioritize consumer value and satisfaction.
Consumer Behavior is Interdisciplinary
I. Economics often is defined as the study of production and consumption. As the
definition implies, economics also involves consumption.
II. Psychology: Study of human and animal mental function and behavior (Ego,
Personality, Emotions…)/ or study of human reaction to their environment.
III. Sociology: Study of human social structure and activity (Materialism, Social Class
Effects, Familial Ties…). Sociology focuses on the study of groups of people
within a society.
IV. Social Psychology: Study of individual thoughts, feelings, and behaviors as they
affect and are affected by others / as they interact with others (Group dynamics,
team work, aggression…). Social psychology focuses on the thoughts, feelings,
and behaviors that people have as they interact with other people (group
behavior).
V. Anthropology: Study of human beings everywhere and throughout time (language,
culture, archeology, biology…). Interpret the relationships between consumers
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and the things they purchase, the products they own, and the activities in which
they participate.
Product Benefits and Costs
I. People do not buy products, they buy benefits! Products are bundles of benefits
that can be
a. Tangible features that are in some sense measurable (attributes)
b. Intangibles are associated with feelings experienced when owning or using
a product or service
c. Consuming is also associated with costs = Money, time, effort,…
Value and the Total Value Concept
II. Personal assessment of the net worth obtained from an activity: Benefits – Costs
III. Capture how much gratification a consumer receives from consumption
IV. Types and the Total Value Concept
a. Utilitarian: Allows a consumer to solve a problem or accomplish some
tasks (fast food, mass transit, etc.)
b. Hedonic: Value from the actual experience and emotions associated with
consumption (amusement park, shopping, venue, etc.)
c. Symbolic: Value associated with self-expression, status, and pride
V. Augmented Product: not just core benefits but also accessory benefits (customer
service, convenience in purchasing, warrantees…), and the psychological
benefits (intangible pleasure from consumptions).
Market Segmentation
I. Market Segmentation is the separation of a market into groups by identifying
like-minded clusters behaving in similar ways and making similar decisions in the
marketplace
II. Marketers do not create market segments; they find them through market
research
III. After identifying marketing segments --. Marketers decide which segment (s)
they will serve or Target Markets
Target Market Viability: Should the Segment be Pursued? → Effective Targeting
I. The target must be measurable identifiable. This means that the marketer must
be able to see or find the characteristic they have chosen for segmentation.
II. The segment must also be sizeable. It must be large enough to be profitable to
the marketer; The size of the segment itself is not important as long as it has
profit potential.
III. The target must be clearly differentiated. Is it set a part?
IV. A stable segment means that the consumers are not fickle and likely to change
very quickly. Growth potential?
V. A group of consumers must be accessible to be targeted. The marketer must be
able to reach that market in an affordable way.
Segmentation & Targeting Strategies
I. Undifferentiated or Mass Marketing: One Marketing mix for the entire market.
(Ex: Food, Hershey’s Coke, etc.)
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Document Summary
Lecture 1: chapter 1: introduction to consumer behavior. Consumer behavior the behavior that consumer display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs (all decision involving time and money). Consumer behavior and consumption: consumer behavior set of value-seeking activities that take place as people go about addressing their real needs. Ultimately, the process results in a perception of value: consumption is a value-producing process in which the marketer and the consumer interact to produce value. Market orientation: market orientation organizational culture that focuses on consumer needs and embodies the importance of creating value for customers among all employees. Competition drives companies toward a high degree of consumer orientation: consumer orientation: way of doing business in which the actions and decision making prioritize consumer value and satisfaction. Economics often is defined as the study of production and consumption. As the definition implies, economics also involves consumption.
