MARKETING 706 MINSEONG KIM
EXAM 2 - LSUS MBA QUESTIONS &
ANSWERS 100% CORRECT!!
Segmentation and Target Marketing - ANSWERConsider markets as individuals,
institutions, or a group of people Have similar needs that can be met by a specific
offering
Aim to identify specific customer needs and design marketing programs to satisfy
those needs
Firms must comprehensively: Understand current and potential customers Know
customer motivations, behaviors, needs and wants
Marketers must comprehend and define consumer needs better to help attain
success Easier for marketers to make distinctions among smaller segments
Issues in the buying process - ANSWER1. 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
Active Information Search - ANSWERcustomer purposely seeks additional
information, e.g. browsing the internet, asking friends, or visiting dealer showrooms
Sources of Information - ANSWERExternal sources
Internal sources
Internal sources - ANSWERpersonal experiences and memories
External sources - ANSWERadvertising, websites, packaging, display and
salespeople
Amount of time, effort, and expense dedicated to information search depends on: -
ANSWERDegree of risk involved in the purchase.
Amount of expertise with the product category.
Actual cost of the search (time and money).
,Evoked Set - ANSWERNarrowing 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
Need - ANSWEROccurs 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 - ANSWERConsumers' desire for a specific product that will satisfy the need
Demand - ANSWEROccurs only when a consumer's ability and willingness to
purchase a specific product backs up the want for that product
Passive Information Search - ANSWERconsumer 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
Consumers evaluate products as bundles of attributes - ANSWEREach 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: - ANSWER1. 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 - ANSWERUnforeseen circumstances can interfere with
consumer's decision to buy a product
Marketers overcome these factors by:
Reducing the risk of purchase
Making purchase easy
Finding creative solutions to unexpected problems
Key issues in the purchase decision stage: - ANSWERProduct availability
Possession utility
Product availability - ANSWERclosely related to the distribution component of the
marketing program; convenience. It's goal is to put the product within the consumer's
reach wherever that consumer happens to be
, Possession Utility - ANSWERbeing very easy for customers to find a product; the
ease of taking possession of the product. To increase it, marketers may have to offer
financing or layaway for large dollar purchases, delivery and installation of products,
such as home delivery of convenience items, or proper packaging and prompt
shipment through mail
4 Possible Outcomes of Postpurchase Evaluation - ANSWERDelight
Satisfaction
Dissatisfaction
Cognitive dissonance (post-purchase doubt)
Delight - ANSWERproducts performance greatly exceeds buyer expectations
Satisfaction - ANSWERthe product's performance "matches" the buyer's
expectations
Dissatisfaction - ANSWERthe product's performance "falls" short of the buyer's
expectations
Cognitive dissonance (post-purchase doubt) - ANSWERthe buyer is unsure of the
product's performance relative to his or her expectations
High likelihood of experiencing dissatisfaction or cognitive dissonance when: -
ANSWERDollar value of the purchase increases
Opportunity costs of rejected alternatives are high
Purchase decision is emotionally involving
Firms can manage these responses by offering liberal return policies, providing
extensive post-sale support, or reinforcing the wisdom of the consumer's purchase
decision
Factors Affecting the Consumer Buying Process - ANSWERDecision-making
complexity - Primary reason for variations in buying process
Individual influences - Demographics, perceptions, motives, interests, attitudes,
opinions, or lifestyles
Social influences - Culture, subculture, social class, reference groups, and opinion
leaders
Situational influences - Affect amount of time and effort devoted to the purchase task
Common Situational Influences - ANSWERPhysical and spatial influences
Social and interpersonal influences
Temporal influences
Purchase task or product usage influences
Consumer dispositional influences
4 Types of business markets: - ANSWERCommercial Markets
Reseller markets
Government Markets
Institutional Markets
EXAM 2 - LSUS MBA QUESTIONS &
ANSWERS 100% CORRECT!!
Segmentation and Target Marketing - ANSWERConsider markets as individuals,
institutions, or a group of people Have similar needs that can be met by a specific
offering
Aim to identify specific customer needs and design marketing programs to satisfy
those needs
Firms must comprehensively: Understand current and potential customers Know
customer motivations, behaviors, needs and wants
Marketers must comprehend and define consumer needs better to help attain
success Easier for marketers to make distinctions among smaller segments
Issues in the buying process - ANSWER1. 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
Active Information Search - ANSWERcustomer purposely seeks additional
information, e.g. browsing the internet, asking friends, or visiting dealer showrooms
Sources of Information - ANSWERExternal sources
Internal sources
Internal sources - ANSWERpersonal experiences and memories
External sources - ANSWERadvertising, websites, packaging, display and
salespeople
Amount of time, effort, and expense dedicated to information search depends on: -
ANSWERDegree of risk involved in the purchase.
Amount of expertise with the product category.
Actual cost of the search (time and money).
,Evoked Set - ANSWERNarrowing 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
Need - ANSWEROccurs 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 - ANSWERConsumers' desire for a specific product that will satisfy the need
Demand - ANSWEROccurs only when a consumer's ability and willingness to
purchase a specific product backs up the want for that product
Passive Information Search - ANSWERconsumer 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
Consumers evaluate products as bundles of attributes - ANSWEREach 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: - ANSWER1. 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 - ANSWERUnforeseen circumstances can interfere with
consumer's decision to buy a product
Marketers overcome these factors by:
Reducing the risk of purchase
Making purchase easy
Finding creative solutions to unexpected problems
Key issues in the purchase decision stage: - ANSWERProduct availability
Possession utility
Product availability - ANSWERclosely related to the distribution component of the
marketing program; convenience. It's goal is to put the product within the consumer's
reach wherever that consumer happens to be
, Possession Utility - ANSWERbeing very easy for customers to find a product; the
ease of taking possession of the product. To increase it, marketers may have to offer
financing or layaway for large dollar purchases, delivery and installation of products,
such as home delivery of convenience items, or proper packaging and prompt
shipment through mail
4 Possible Outcomes of Postpurchase Evaluation - ANSWERDelight
Satisfaction
Dissatisfaction
Cognitive dissonance (post-purchase doubt)
Delight - ANSWERproducts performance greatly exceeds buyer expectations
Satisfaction - ANSWERthe product's performance "matches" the buyer's
expectations
Dissatisfaction - ANSWERthe product's performance "falls" short of the buyer's
expectations
Cognitive dissonance (post-purchase doubt) - ANSWERthe buyer is unsure of the
product's performance relative to his or her expectations
High likelihood of experiencing dissatisfaction or cognitive dissonance when: -
ANSWERDollar value of the purchase increases
Opportunity costs of rejected alternatives are high
Purchase decision is emotionally involving
Firms can manage these responses by offering liberal return policies, providing
extensive post-sale support, or reinforcing the wisdom of the consumer's purchase
decision
Factors Affecting the Consumer Buying Process - ANSWERDecision-making
complexity - Primary reason for variations in buying process
Individual influences - Demographics, perceptions, motives, interests, attitudes,
opinions, or lifestyles
Social influences - Culture, subculture, social class, reference groups, and opinion
leaders
Situational influences - Affect amount of time and effort devoted to the purchase task
Common Situational Influences - ANSWERPhysical and spatial influences
Social and interpersonal influences
Temporal influences
Purchase task or product usage influences
Consumer dispositional influences
4 Types of business markets: - ANSWERCommercial Markets
Reseller markets
Government Markets
Institutional Markets
