Chapter Marketing 5
Key Terms
1. Affective component-component of attitude that describes how a person feels about an
issue at hand-his or her like or dislike of something
2. Attitude- enduring evaluation of feelings about and behavioral tendencies toward an
object or ideas; consists of three components: cognitive, affective, and behavioral
3. Behavioral component- component of attitude that comprises a persons actions with
regard to the issue at hand
4. Cognitive component-component of attitude that reflects what a person believes to be
true
5. Compensatory decision rule-evaluation process of alternatives that trades off
characteristics, such that good characteristics compensate for bad ones
6. Consumer decision rules-criteria consumers use consciously or subconsciously to select
from several alternatives efficiently
7. Conversion rate- The percentage of visitors who take a desired action
8. Culture-set of values, guiding beliefs, understandings, and ways of doing things shared
by members of society; consists of visible artifacts and underlying values
9. Decision heuristics-mental shortcuts that help consumers narrow choices, such as price,
brand, and product presentation
10. Determinant attributes-product or service features important to the buyer and on which
competing brands or stores are perceived to differ
11. Esteem needs- Include self-esteem, confidence, achievement, respect of others, respect
by others
12. Evaluation criteria-set of salient attributes about a particular product
13. Evoked set-alternative brands or stores that the consumer would consider when making a
purchase decision
14. Extended problem solving-purchase decision process; consumer devotes considerable
time and effort to analyzing alternatives, often because of perception that the purchase
decision entails risk
15. External locus of control-when consumers believe that fate or other external factors
control all outcomes
16. External search for information-the buyer seeks information outside his or her personal
knowledge base to help make the buying decision
17. Financial risk-risk associated with a monetary outlay: includes initial cost of purchase
and costs of using the item or service
18. Functional needs-pertain to performance of a product or service
19. Habitual decision making-purchase decision process in which consumers expend little
conscious effort
20. Impulse buying-buying decision made by customers on the spot when they see
merchandise
21. Internal locus of control-when consumers believe they have control over the outcomes
of their actions and generally engage in more search activities
22. Internal search for information-when the buyer examines memory and knowledge
about the product or service, gathered through past experiences
23. Involvement-Degree of intensity of interest that a buyer shows for a certain product in a
particular purchase decision.
24. Learning-change in a persons thought process or behavior that arises from experience
and takes place throughout the consumer decision process
25. Lifestyle- a better tool statistically for segmenting affluent consumers than everything
except gender. It is more likely than age, income, education, zip code, etc., to predict
what affluent people will do and why. Targeting a Lifestyle, rather than a demographic,
provides a more detailed definition of the best prospect, how many, why they buy and
specifics about how to reach them.
26. Limited problem solving-occurs during a purchase decision that calls for a moderate
amount of effort and time
27. Love needs- Include friendship, family, sexual intimacy
28. Maslows Hierarchy of Needs- Needs that include physiological, safety, love/belonging,
esteem and self-actualization
29. Motive-need or want that is strong enough to cause the person to seek satisfaction
30. Multi-attribute model- A model of attitudes that views an individuals evaluation of an
object (product, brand, service, etc.) as being a function of the beliefs that he or she has
toward the object on various attributes and the importance of these attributes.
31. Need recognition-beginning of consumer decision process; consumers recognize an
unsatisfied need and want to move from their needy state to a desired state
32. Negative word of mouth-when consumers spread negative information about a product,
service, or store to others
33. Noncompensatory decision rule-when consumers chose a product or service on the
basis of a subset of characteristics, regardless of the values one attributes
34. Perception-process by which people select, organize, and interpret information to form
meaningful picture of the world
35. Performance risk-perceived danger inherent in a poorly performing product or service
36. Physiological need- needs related to the basic biological necessities of life: food, drink,
rest and shelter
37. Physiological risk- innate human feelings of deprivation related to an individual's mental wellbeing
38. Postpurchase cognitive dissonance-psychologically uncomfortable state produced by
an inconsistency between beliefs and behaviors that evokes a motivation to reduce the
dissonance
39. Psychological needs-needs related to the basic biological necessities of life: food, drink,
rest and shelter
40. personal gratification consumers associate with a product or service
41. Psychological risk- the concern or uncertainty felt by a prospective buyer that he or she will
feel bad about the purchase afterwards
42. Reference group-persons an individual uses as a basis for comparison regarding beliefs,
feelings and behaviors
43. Retrieval sets- what you are aware of
44. Safety needs-one of the needs in the PSSP hierarchy; pertain to protection and physical
well-being
45. Safety risk- A functional risk a consumer feels he/she is taking when purchasing a
product.
46. Self-actualization- the final level of psychological development that can be achieved
when all basic and mental needs are fulfilled and the "actualization" of the full personal
potential takes place.
47. Situational factors-affect the consumer decision process; those specific to the situation
that may override or influence psychological and social issues
48. Social risk- concern or uncertainty in the buyer's mind that the purchase of the product under
consideration will not be approved of by others
49. Universal sets-all possible choices for a product category
Applications Questions
1. Does buying an Apple iPad satisfy a consumers functional or psychological need? How
might this information help an iPad brand manager better promote the product?
The iPad satisfies a consumers functional need, i.e. those pertaining to
performance of a product or service. A brand manager could emphasize all of the
many performance functions and capabilities that an iPad offers in promoting this
product.
2. When consumers buy new calculators, what sort of information search (internal vs.
external) would they conduct? If you were a marketing manager for HP, how would you
use this information?
When the buyer examines memory and knowledge about the product or service,
gathered through past experiences, the search being conducted is an internal
search. External search for information would be when the buyer seeks
information outside his her or personal knowledge base to help make the buying
decision. A consumer who is looking to buy a new calculator could utilize both
search methods, internal when he recalls what calculator model and company he
purchased from before and its functioning duration, and external when
researching online for the best price & capabilities of calculators. If I were the
marketing manager, I would be sure to utilize various aspects of making the
product information available to these consumers, i.e. online, ads, etc/
3. Explain the factors that affect the amount of time and effort that a consumer might take
when choosing an oral surgeon to get his/her wisdom teeth removed. How would your
answer change if the consumer were looking for a dentist to get a cleaning? How should
the office manager for a dental practice use this information?
Factors that a consumer might take in consideration when choosing an oral
surgeon for wisdom tooth removal are: the price of the surgery, how much
experience the surgeon has, whether or not they want to be put under or to simply
use a local anesthetic. If they were looking for a dentist, the same factors would
be taken into consideration: price, experience, anesthesia and location. The office
manager should make this
Information available on the dental practice's website and subsequent
advertisements in order for consumer's to have easy access to it.
4. When evaluating different alternatives for a Saturday night outing at a fine restaurant,
explain the difference between the universal set, the retrieval set, and the evoked set.
From which set of alternatives will the consumer most likely choose the restaurant?
Universal sets-all possible choices for a product category, Retrieval set- what you
are aware of, Evoked set-alternative brands or stores that the consumer would
consider when making a purchase decision When evaluating different alternatives
for a Saturday night outing at a fine restaurant, the consumer would most likely
choose the restaurant on the basis of his or her retrieval set, since this consists of
what the consumer is aware of. The possibility exists that the consumer may
utilize the evoked set or the universal set as well. It largely would depend on the
consumer in question.
5. What can retailers do to make sure they have satisfied customers after the sale is
complete?
They can have someone call and ask, they can ask the customer to take a survey
in exchange for a percentage off the next time they purchase something, they can
simply offer discounts or other perks to the customer in appreciation of their
business.
6. Tazo makes a blend of exotic green teas, spearmint, and rare herbs into a tea called Zen.
Using Maslows Hierarchy of Needs, explain which need(s) are being fulfilled by this tea.
On the basis of Maslows Hierarchy of Needs, Tazos blend of exotic teas fulfills
the following needs: physiological-water, safety-health (since the teas are
healthier than most available on the market and therefore contribute to ones
overall health and well-being), esteem-self-esteem (which could be achieved
through a persons overall healthy lifestyle), self-actualization-creativity (Tazo
blend is unique and exotic and creative).
7. Identify and describe the three social factors that influence the consumer decision
process. Provide an example of how each of these might influence the purchase of the
necessary products and services for a family vacation.
Consumers making a purchase decision will be affected by the following three
factors: Personal factors which are unique to a particular person. Demographics
factors, sex, race, age, etc; Psychological factors include-motives (internal
energizing force that orients a persons activities toward satisfying a need or
achieving a goal, perception (process of selecting, organizing, and interpreting
information inputs to produce meaning, ability and knowledge, attitudes,
personality and lifestyle; Social factors are consumer wants, learning, motives, etc
are influenced by opinion leaders, persons family, reference groups, social class
and culture. Personal factors that would influence the purchase of necessary
products for a family vacation would how old the children were, race, age,
whether or not the family is middle class or upper-to-middle class. Psychological
factors would include how a family perceived a particular hotel and what attitude
they held towards it. Social factors would include what culture and social class the
family comes from.
8. Trek has designed a new off-road bicycle designed to stand up to the rugged conditions of
trail riding. Develop a theme for an advertising strategy that ensures all three components
of attitude are positively covered.
Theme: Our new off-road bike will allow you to tackle that rugged terrain
(affective component), with the sense of adventure and that trail-riders are born to
have (cognitive and behavioral component). Our bicycles offer you a timeless
bike designed to enhance your enjoyment of the outdoors. Affective componentcomponent of attitude that describes how a person feels about an issue at hand-his
or her like or dislike of something; Behavioral component- component of attitude
that comprises a persons actions with regard to the issue at hand; Cognitive
component-component of attitude that reflects what a person believes to be true
9. What can a marketer do to positively influence a situation in which a consumer is ready
to buy but has not yet done so?
The marketer can alter the consumers perception, casting the product or service
in an even more favorable light, thus generating the motive and increasing desire
for that product itself. This will also affect the consumers attitude toward that
subsequent product or service.
10. You were recently hired by a multichannel retailer that promotes itself as an American
firm selling only American-made goods. The products featured in advertising and in the
catalogs tell the stories of the firms that produced the goods in the US. The sales response
to the firms Made in America position has been incredible and growth has been
impressive. One day while speaking to a vendor, you find out a shipment of merchandise
will be delayed since the product is coming from overseas and is late. A few days later
you hear a similar story. As it turns out, the firm just barely earns the Made in the USA
label. Though technically the products meet a standard to be classified as American
made, you worry that the firm is not being entirely truthful to its customers. You decide to
write a letter to the VP of Marketing detailing your concerns. What would you put in the
letter?
I would emphasize my concern of the firm advertising itself as an American firm
selling only American-made goods. Even though technically the firm meets a
standard to be classified under the Made in the USA label, it is dishonest to make
this claim when the product is actually coming from overseas. This kind of
statement would fall under misrepresentation and is unethical. I understand that
the public have responded favorably to the Made in America position, but this
position is not entirely truthful or accurate, therefore cannot be asserted. I would
ask for the VP to respond, and then go from there.