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MBA 706-M. Kim-Summer AP1 Questions and Answers 100% CorrectMBA 706-M. Kim-Summer AP1 Questions and Answers 100% CorrectMBA 706-M. Kim-Summer AP1 Questions and Answers 100% CorrectMBA 706-M. Kim-Summer AP1 Questions and Answers 100% Correct Segmentation & Target Marketing - ANSWER-~consider market...

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MBA 706-M. Kim-Summer AP1

Questions and Answers 100%

Correct


Segmentation & Target Marketing - ANSWER-~consider markets as

individuals, institutions, or group of ppl. have similar needs that can be met

by specific offering

~aim to identify specific customer needs & design marketing programs to

satisfy needs

~firms must comprehensively understand current & potential customers,

motivations, behaviors, needs, wants

~segmentation allows marketers to more precisely define and understand

customer needs, & gives them ability to tailor products to suit those needs.

marketers are unable to fully understand all customers needs/wants




Buyer Behavior in Consumer Markets - ANSWER--irrational & unpredictable

-5 stages

,Diff b/w want & need from consumer buying process' perspective - ANSWER--

Need: when customer's existing level of satisfaction & desired level of

satisfaction are not same (based on internal & external stimuli)

-Want: consumer's desire for specific product that will satisfy need

-Demand: when consumers ability & willingness to purchase product backs

up the want for product




Relationship b/w Need & Want - ANSWER-people argue they NEED a car

when "real need" is transportation. need for car is a "want"




Difference b/w Want & Demand - ANSWER-customers "want" luxury care, but

only few are able & willing to buy one(EX: demand)




Consumer Buying Process: Evaluation of Alternatives - ANSWER--consumers

eval products as bundles of attributes: each has diff level of importance.

priority of choice criteria can change during the process

-important considerations: products must be in the evoked set. consumers

choice criteria must be understood

-marketing programs must be designed to change priority of choice criteria,

and change consumers opinions about product/brand image.

-at this stage, consumer translates need into want

,Consumer Buying Process: Purchase Decision - ANSWER--after consumer

evaluates each alternative in the evoked set, they form an intention to

purchase a product/brand

-purchase intention & actual act of buying are distinct concepts

-unforeseen circumstances can interfere w/consumer's decision to buy

product




Marketers overcome unforeseen circumstances by: - ANSWER--reducing risk

of purchase: warranties, guarantees

-making purchase easy

-finding creative solutions to unexpected problems




firms can manage responses (dissatisfaction or cognitive dissonance) by: -

ANSWER--offering liberal return policies

-providing extensive post-sale support

-reinforcing the wisdom of consumer's purchase decision

, Issues in the buying process - ANSWER-1. consumers dont always follow

stages in the sequence & can be swayed by brand loyalty (also impulse

purchases)

2. making parallel decisions: what to buy and where to buy?

3. bias towards a merchant limits purchasing powers




The Buying Process - ANSWER--describes possible range of activities that

may occur in consumers making purchase decisions




Issues in purchase decision stage - ANSWER--product availability: related to

distribution component of marketing program, CONVENIENCE.

Goal: to put product within consumer's reach where they are

-possession utility: easy for customers to find product; ease of taking

possession of the product.

EX: layaway or financing, delivery, installation, proper packaging, prompt

shipment (newspapers, pizza)




4 Outcomes that Consumers Experience in Post-Purchase stage (how are

they diff?) - ANSWER-1. delight

2. satisfaction

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