Exam 1: Consumer Behavior: Meeting Changes and Challenges

Once or twice a year,when Estee Lauder runs a particularly good promotion,Candace buys some new make-up.She typically only spends the minimum required to qualify for the promotion.On the customer profitability pyramid,Candace is most likely to fall into the ________ tier.

Customer profitability-focused marketing ________.

When Jenny is checking out at the grocery store,she frequently picks up a 20-oz bottle of soda at one of the coolers by the register.She doesn't have a strong preference for Coke or Pepsi,and will just buy whichever happens to be closest.In this instance,Jenny is best described as a(n)________.

As consumers spend more time online and have more technological tools that enable them to avoid exposure to TV ads,marketers are ________.

Pete ate at a local tex-mex chain last weekend and received such poor service that he swore he would never go back.The following Monday,when his coworkers asked about his weekend,Pete told them about the bungled,dissatisfactory service he received,and even exaggerated the lousy experience he had.In this situation,Pete is best described as a(n)________.

Companies that focus on understanding customers are able to continue to grow and remain leaders in their industries in spite of increased competition and changing business environments.

Define consumer behavior.What is the scope of consumer behavior?

CAR MINI CASE: In the early 1900s, Henry Ford made a fortune manufacturing Model T cars and selling them cheaply, making the automobile affordable for a much larger proportion of the population than had previously been the case.He accomplished this by producing only one model of car and doing so cheaply and at high volumes through the utilization of assembly line manufacture.In 1923, General Motors decided to increase its market share in the automobile industry by offering, instead of just one model, as Ford did, a variety of affordable mass-produced models to meet the various differing needs of different types of consumers. -In the CAR MINI CASE,which element of the marketing mix was central to General Motors' business model?

Consumers have more power today than ever before,as seen through their use of "intelligent agents" to locate the best prices for products and services.

The focus of the ________ was to sell more of what the manufacturing department was able to produce.

In the consumer decision making process,the ________ stage focuses on how consumers make decisions.

To respond to consumers' growing interest in products and services that were more unique and would better satisfy their individual or specific needs and preferences,companies adopted the ________.

RYAN'S RUNNERS MINI CASE: Ryan wants to open a store that caters to athletes, but, due to space and budgetary constraints, he recognizes that he will not be able to offer the same variety and selection of products as does the local athletic mega-store, so he has decided to focus specifically on runners.He stocks shoes and related gear for runners, and maintains a staff that is knowledgeable and enthusiastic about running.Ryan's advertising campaign emphasizes his store's high standard of customer service and selection of products specifically tailored to meet the needs of the runner. -In the RYAN'S RUNNERS MINI CASE,Ryan decides to focus his attention on that segment of the market that is interested in running.This selection of a specific market segment is known as ________.

The ________ orientation in business assumes that consumers are mostly interested in product availability at low prices.

When George buys roses for his girlfriend for Valentine's Day,he is acting as a(n)________.

The primary objective of providing value to customers continuously and more effectively than the competition is ________.

The production orientation makes sense for a business when ________.

A personal consumer buys goods for ________.

Talk briefly about market segmentation,targeting,and positioning.

In the consumer decision making process,the ________ stage focuses on how consumers make decisions.