MBA 705 MINSUN KIM EXAM 2 PRACTICE AND
REVIEW MATERIAL WITH CORPORATE
STRATEGY APPLICATION QUESTIONS
◉ Issues in the buying process.
Answer: 1. Describes the possible range of activities that may occur
in consumers' making purchase decisions. Consumers don't always
follow these processes in sequence and may even skip stages en
route to making a purchase (e.g. impulse purchases or loyalty
toward a product or brand)
2. Often involves a parallel sequence of activities associated with
finding the most suitable merchant of the product in question.
Consumers consider what product to buy and where they might buy
it at the same time. In the case of name brand products, this
selection process may focus on the product's price and availability at
different stores or online merchants
3. choice of a suitable merchant may actually take precedence over
the choice of a specific product. In some cases, consumers are so
loyal to a particular merchant that they will not consider looking
elsewhere. For example, if some consumers are fiercely loyal to
American car manufacturers, they may limit their product selection
to a single brand or dealership, greatly limiting their range of
potential product choices
◉ Need.
,Answer: Occurs when the customer's existing level of satisfaction
and desired level of satisfaction are not the same
Based on the internal (e.g., hunger, thirst and fatigue) or external
(e.g., advertising, window shopping, interacting with sales people)
stimuli
◉ Want.
Answer: Consumers' desire for a specific product that will satisfy the
need
◉ Demand.
Answer: Occurs only when a consumer's ability and willingness to
purchase a specific product backs up the want for that product
◉ Passive Information Search.
Answer: consumer becomes more attentive and receptive to
information. E.g. noticing and paying attention to automobile ads if
the customer has a want for a specific car/brand
◉ Active Information Search.
Answer: customer purposely seeks additional information, e.g.
browsing the internet, asking friends, or visiting dealer showrooms
◉ Sources of Information.
,Answer: External sources
Internal sources
◉ Internal sources.
Answer: personal experiences and memories
◉ External sources.
Answer: advertising, websites, packaging, display and salespeople
◉ Amount of time, effort, and expense dedicated to information
search depends on:.
Answer: Degree of risk involved in the purchase.
Amount of expertise with the product category.
Actual cost of the search (time and money).
◉ Evoked Set.
Answer: Narrowing down potential product choices to a few
products that can meet consumer needs
Represents the outcome of information search and the beginning of
the next stage of the buying process
Eliminating brands from further consideration after research
, ◉ Consumers evaluate products as bundles of attributes.
Answer: Each attribute has a different level of importance
Priority of choice criteria can change during the process (i.e. buying
a car and deciding on bundle features, safety vs prices)
◉ Important marketing considerations during the evaluation stage:.
Answer: 1. The marketer's products must be in the evoked set of
potential alternatives. For this reason, marketers must constantly
remind consumers of their company and its product offerings
2. Marketers must take steps to understand consumers' choice
criteria and the importance they place on specific product attributes.
Understanding the connection between customers' needs and
product attributes is an important consideration in market
segmentation and target marketing decisions.
3. Marketers must often design marketing programs that change the
priority of choice criteria or change consumers' opinions about a
product's image.
◉ Purchase Decision.
Answer: Unforeseen circumstances can interfere with consumer's
decision to buy a product
Marketers overcome these factors by:
Reducing the risk of purchase
Making purchase easy
REVIEW MATERIAL WITH CORPORATE
STRATEGY APPLICATION QUESTIONS
◉ Issues in the buying process.
Answer: 1. Describes the possible range of activities that may occur
in consumers' making purchase decisions. Consumers don't always
follow these processes in sequence and may even skip stages en
route to making a purchase (e.g. impulse purchases or loyalty
toward a product or brand)
2. Often involves a parallel sequence of activities associated with
finding the most suitable merchant of the product in question.
Consumers consider what product to buy and where they might buy
it at the same time. In the case of name brand products, this
selection process may focus on the product's price and availability at
different stores or online merchants
3. choice of a suitable merchant may actually take precedence over
the choice of a specific product. In some cases, consumers are so
loyal to a particular merchant that they will not consider looking
elsewhere. For example, if some consumers are fiercely loyal to
American car manufacturers, they may limit their product selection
to a single brand or dealership, greatly limiting their range of
potential product choices
◉ Need.
,Answer: Occurs when the customer's existing level of satisfaction
and desired level of satisfaction are not the same
Based on the internal (e.g., hunger, thirst and fatigue) or external
(e.g., advertising, window shopping, interacting with sales people)
stimuli
◉ Want.
Answer: Consumers' desire for a specific product that will satisfy the
need
◉ Demand.
Answer: Occurs only when a consumer's ability and willingness to
purchase a specific product backs up the want for that product
◉ Passive Information Search.
Answer: consumer becomes more attentive and receptive to
information. E.g. noticing and paying attention to automobile ads if
the customer has a want for a specific car/brand
◉ Active Information Search.
Answer: customer purposely seeks additional information, e.g.
browsing the internet, asking friends, or visiting dealer showrooms
◉ Sources of Information.
,Answer: External sources
Internal sources
◉ Internal sources.
Answer: personal experiences and memories
◉ External sources.
Answer: advertising, websites, packaging, display and salespeople
◉ Amount of time, effort, and expense dedicated to information
search depends on:.
Answer: Degree of risk involved in the purchase.
Amount of expertise with the product category.
Actual cost of the search (time and money).
◉ Evoked Set.
Answer: Narrowing down potential product choices to a few
products that can meet consumer needs
Represents the outcome of information search and the beginning of
the next stage of the buying process
Eliminating brands from further consideration after research
, ◉ Consumers evaluate products as bundles of attributes.
Answer: Each attribute has a different level of importance
Priority of choice criteria can change during the process (i.e. buying
a car and deciding on bundle features, safety vs prices)
◉ Important marketing considerations during the evaluation stage:.
Answer: 1. The marketer's products must be in the evoked set of
potential alternatives. For this reason, marketers must constantly
remind consumers of their company and its product offerings
2. Marketers must take steps to understand consumers' choice
criteria and the importance they place on specific product attributes.
Understanding the connection between customers' needs and
product attributes is an important consideration in market
segmentation and target marketing decisions.
3. Marketers must often design marketing programs that change the
priority of choice criteria or change consumers' opinions about a
product's image.
◉ Purchase Decision.
Answer: Unforeseen circumstances can interfere with consumer's
decision to buy a product
Marketers overcome these factors by:
Reducing the risk of purchase
Making purchase easy
