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marketing 351 test one
Terms in this set (39)
Law of Diminishing Marginal Utility
As consumption of a good or service increases, the marginal utility obtained from each additional unit of a good or service decreases.
- not the same as usefulness, subjective, and difficult to quanitify
one unit of satisfaction or pleasure
the total amount of satisfaction
the extra satisfaction from an additional unit of the good
t or f: total and marginal utility can be negative
J spends his money on cucumbers and lettuce. If the price of cucumbers falls, then typically J will subtitute _ for _.
The first Pepsi gives Jack 18 units of utility. The second Pepsi has a marginal utility of X units and the marginal utility of the third Pepsi is 8 units. Jack's total utility from three Pepsis is 38 units
Total utility is obtained by:
Sum of marginal utility of each unit consumed
A segment is...
a group of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs
A segment typically meets the following criteria:
- distinct from/heterogenous from other segments (different segments have different needs)
- homogenous within the segment (those within a segment exhibit similar needs)
- can be reached by a market intervention
Why we segment
- To allow the marketing program to focus on the subset of prospects that are most likely to purchase the offering/least likely to be served by competition
Methods for Market Segments
geographic, demographic, psychographic, benefits, geodemographic, loyalty
How to position
choose dimensions important to the target segment & where the firm has competitive advantage
customer, company, context, collaborators, competitors
segmentation, targeting, positioning
product, price, place, promotion
Many small businesses whose competitors are national franchises advertise "we are locally owned" or "we have been here since 1951." This is part of these firms'
- market and product development
Adrienne decides to add new sales representatives and increase advertising in her existing market for her current line of security systems. Adrienne is pursuing a __________ growth strategy.
types of risks
performance, psychological, financial, physiological, social
Jonathan prefers shirts made with 100% cotton, but he will sometimes buy shirts with less cotton if they are less expensive. Jonathan uses __________ to decide which shirts to buy.
a compensatory decision rule
customer satisfaction, dissonance, customer loyalty
Sometimes consumers have second thoughts after buying goods that are expensive, infrequently purchased, or associated with a high level of risk. This is an especially critical time for marketers, as their customers are dealing with
Maslow's Hierarchy of Needs
Self-actualization, esteem, love, safety, psychological
Upscale men's and women's clothing stores like Nordstrom's, Neiman-Marcus, or Saks Fifth Avenue are more likely to appeal to consumers' __________ needs.
3 options, option 2 is useless. Low justification vs. high justification: high-the need to justify is very important. low-you don't need to justify their choices. the decoy effect only works with people who have a high need to justify
You can have the same target market and different positioning
find out what your target market likes and what you can best deliver; positioning is about what your target segment likes and what you can deliver
representation of how consumers sees product; mistake we will make - do not see it as what i think, but look at it in general; compare your product to another product that does not have competition; don't pick a product to compare yourself to that is better than your product
Most searches are...
internal - you know how long before you need to go to the store
Actual vs. perceived risk
performance risk - very important, may or may not work. Social risk - USC shirt in Clemson class..risk of what others think about you. Psychological risk - how you feel
if you are here but you don't move to retreival you need to get people more aware of your brand
relevant and available - if you are here and don't move to evoked, you need to get people to like your product
what you are actually interested in
considers all information
considers only partial information
satisfaction, loyalty, dissonance (buyer's remorse)
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