MKT 305 Test questions and answers
graded A+
Heavy users - ANS✅✅-most faithful customers
-A name companies use to identify their customers who consume their products in large volumes
80/20 rule - ANS✅✅-Markets can be segmented by how often or how heavily consumers use a
specific product
-80% of revenue generated by 20% of customers
Market Segmentation - ANS✅✅-The process of dividing a market into meaningful, relatively
similar, and identifiable segments or groups
-Choose a company and select a "new" product or service being introduced by your company
Demographics - ANS✅✅-Statistics that measure observable aspects of a population (EX: birth rate,
age distribution, and income)
-U.S. Census Bureau is a major source of the demographic data on U.S. families (and other private
firms)
-The changes and trends in demographics that demographic studies reveal are of the greatest
interest to marketers because they can use the data to locate and predict the size of markets for
many products
Age - ANS✅✅-Consumers of different age groups obviously have different needs and wants
-People in the same age group differ, but they also tend to share a set of values and common
cultural experiences
Gender - ANS✅✅-Many products target to either men or women
Family Structure - ANS✅✅-A person's family and martial status is another important demographic
variable because it has an effect on consumers' spending priorities
-EX: Young bachelors, newlyweds, families with young children, single-parent households
Social Class and Income - ANS✅✅-People who belong to the same social class are approximately
equal in terms of income and social standing in the community
,-Have similar tastes in music, clothes, leisure activities, and art
Race and Ethnicity - ANS✅✅-As our society becomes more multicultural, new opportunities
develop to deliver specialized products to racial and ethnic groups and to introduce other groups to
these offerings
-EX: McDonal's assesses their reactions to new menu items before it rolls them out to the Caucasian
market
Geography - ANS✅✅-Many national markets tailor their offerings to appeal to consumers who live
in different parts of the country
Lifestyles - ANS✅✅-What we value and the things we do in our spare time all differ
(psychographics)
-These factor help to determine which products will push our buttons or even those that will make
us feel better
EX: P&G developed heartburn medicine for "Joanne" - a mother who is 35 and gets heartburn from a
cup of coffee, not 50 pizza rolls and beer
Relationship Marketing - ANS✅✅-Interact with customers on a regular basis and give them solid
reasons to maintain a bond with the company over time
Database marketing - ANS✅✅-Tracks specific consumers' buying habits closely and crafts products
and messages tailored precisely to people's wants and needs based on this information
-EX: Walmart found out that when a forecasts predicts a major hurricane, strawberry pop-tart sales
increased by 700%
Big data - ANS✅✅-Collection and analysis of extremely large datasets
Popular culture - ANS✅✅-Culture found in a large, heterogeneous society that shares certain
habits despite differences in other personal characteristics.
-Music, movies, sports, books, celebrities, and other forms of entertainment that the mass market
produces and consumes
Consumer Behavior - ANS✅✅-A study of the process involved with individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
, -Moves beyond thinking about products (It's about distribution, persuasion, and movement of ideas)
Consumer Behavior is a Process - ANS✅✅-Exchange: A transaction in which 2 or more organization
or people give and receive something of value
-Consumer: Person who identifies a need or desire, makes a purchase, and then disposes of the
product during the 3 stages of the consumption process
3 stages of consumption process - ANS✅✅1) pre-purchase issues
2) purchase issues
3) post-purchase issues
Pre-purchase issues - ANS✅✅Consumer's perspective: How does a consumer decide that he/she
needs a product? What are the best sources of information to learn more about alternative choices?
Marketer's perspective: How are consumer attitudes toward products formed and/or changed?
What cues do consumers use to infer which products are superior to others?
Purchase Issues - ANS✅✅Consumer's perspective: Is acquiring a product a stressful or pleasant
experience? What does the purchase say about the consumer?
Marketer's perspective: How do situational factors (time, pressure, store displays) affect the
consumer's purchase decision?
Post-purchase Issues - ANS✅✅Consumer's perspective: Does the product provide pleasure or
perform its intended function? How is the product eventually disposed? Are there environmental
consequences?
Marketer's perspective: What determines whether a consumer will be satisfied with a product and
whether they will buy it again? Does this person tell others about their experiences and influence
their purchase decisions?
Role Theory - ANS✅✅-View that much of consumer behavior resembles actions in a play
-Seek items to put on a good performance
-Alter consumption decisions depending on the particular 'play' they are in at the time (up-and-
coming executive, geek, hipster)
graded A+
Heavy users - ANS✅✅-most faithful customers
-A name companies use to identify their customers who consume their products in large volumes
80/20 rule - ANS✅✅-Markets can be segmented by how often or how heavily consumers use a
specific product
-80% of revenue generated by 20% of customers
Market Segmentation - ANS✅✅-The process of dividing a market into meaningful, relatively
similar, and identifiable segments or groups
-Choose a company and select a "new" product or service being introduced by your company
Demographics - ANS✅✅-Statistics that measure observable aspects of a population (EX: birth rate,
age distribution, and income)
-U.S. Census Bureau is a major source of the demographic data on U.S. families (and other private
firms)
-The changes and trends in demographics that demographic studies reveal are of the greatest
interest to marketers because they can use the data to locate and predict the size of markets for
many products
Age - ANS✅✅-Consumers of different age groups obviously have different needs and wants
-People in the same age group differ, but they also tend to share a set of values and common
cultural experiences
Gender - ANS✅✅-Many products target to either men or women
Family Structure - ANS✅✅-A person's family and martial status is another important demographic
variable because it has an effect on consumers' spending priorities
-EX: Young bachelors, newlyweds, families with young children, single-parent households
Social Class and Income - ANS✅✅-People who belong to the same social class are approximately
equal in terms of income and social standing in the community
,-Have similar tastes in music, clothes, leisure activities, and art
Race and Ethnicity - ANS✅✅-As our society becomes more multicultural, new opportunities
develop to deliver specialized products to racial and ethnic groups and to introduce other groups to
these offerings
-EX: McDonal's assesses their reactions to new menu items before it rolls them out to the Caucasian
market
Geography - ANS✅✅-Many national markets tailor their offerings to appeal to consumers who live
in different parts of the country
Lifestyles - ANS✅✅-What we value and the things we do in our spare time all differ
(psychographics)
-These factor help to determine which products will push our buttons or even those that will make
us feel better
EX: P&G developed heartburn medicine for "Joanne" - a mother who is 35 and gets heartburn from a
cup of coffee, not 50 pizza rolls and beer
Relationship Marketing - ANS✅✅-Interact with customers on a regular basis and give them solid
reasons to maintain a bond with the company over time
Database marketing - ANS✅✅-Tracks specific consumers' buying habits closely and crafts products
and messages tailored precisely to people's wants and needs based on this information
-EX: Walmart found out that when a forecasts predicts a major hurricane, strawberry pop-tart sales
increased by 700%
Big data - ANS✅✅-Collection and analysis of extremely large datasets
Popular culture - ANS✅✅-Culture found in a large, heterogeneous society that shares certain
habits despite differences in other personal characteristics.
-Music, movies, sports, books, celebrities, and other forms of entertainment that the mass market
produces and consumes
Consumer Behavior - ANS✅✅-A study of the process involved with individuals or groups select,
purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires
, -Moves beyond thinking about products (It's about distribution, persuasion, and movement of ideas)
Consumer Behavior is a Process - ANS✅✅-Exchange: A transaction in which 2 or more organization
or people give and receive something of value
-Consumer: Person who identifies a need or desire, makes a purchase, and then disposes of the
product during the 3 stages of the consumption process
3 stages of consumption process - ANS✅✅1) pre-purchase issues
2) purchase issues
3) post-purchase issues
Pre-purchase issues - ANS✅✅Consumer's perspective: How does a consumer decide that he/she
needs a product? What are the best sources of information to learn more about alternative choices?
Marketer's perspective: How are consumer attitudes toward products formed and/or changed?
What cues do consumers use to infer which products are superior to others?
Purchase Issues - ANS✅✅Consumer's perspective: Is acquiring a product a stressful or pleasant
experience? What does the purchase say about the consumer?
Marketer's perspective: How do situational factors (time, pressure, store displays) affect the
consumer's purchase decision?
Post-purchase Issues - ANS✅✅Consumer's perspective: Does the product provide pleasure or
perform its intended function? How is the product eventually disposed? Are there environmental
consequences?
Marketer's perspective: What determines whether a consumer will be satisfied with a product and
whether they will buy it again? Does this person tell others about their experiences and influence
their purchase decisions?
Role Theory - ANS✅✅-View that much of consumer behavior resembles actions in a play
-Seek items to put on a good performance
-Alter consumption decisions depending on the particular 'play' they are in at the time (up-and-
coming executive, geek, hipster)
