Lecture 12 – PRODUCTS & MARKETS

Question 1

When considering a purchase, consumers evaluate (2)

Answer 1

1. offer (product)
2. likelihood to use it

Question 2

Opportunities to display commercial messages (4)

Answer 2

1. sponsored events
2. product placement
3. display ads next to the content
4. pre/during/ post experience

Question 3

Long tail markets

Answer 3

= markets characterised by few highly popular products & many less popular products

Question 4

Customer lifetime value (CLV)

Answer 4

= tot amount of value that a consumer generates for the firm throughout their lifetime

Question 5

How CLV affects strategy (3)

Answer 5

1. product development
2. targeting
3. positioning

Question 6

Marketing contexts with high CLV impact

Answer 6

1. subscriptions
2. free/ ad-based media
3. habitual consumption
4. brand-driven consumption

Question 7

3 costs that makes sense to pay to make consumers satisfied

Answer 7

1. generous return policies
2. low introductory prices
3. effective customer service

Question 8

2 costs to pay to attract new customers

Answer 8

1. discounts for new customers
2. student discounts (they will pay full price in the LT)