M1

Question 1

original use and features of crocs

Answer 1

boating shoe- grip soles, waterproof, toe protection, easy on and off, and ventilation holes for drying

Question 2

How did the shoes get the name crocs?

Answer 2

designed to work on land and out in the water

also look like a crocodile head from the side

Question 3

what is the just noticeable difference threshold and its significance in logo changes?

Question 4

how to market crocs? they’re so ugly

Answer 4

attempt to expand customer base by offering more types of products (shirts, hats, sunglasses, garden knee pads - but people didn’t buy)

eventually had 9 clog models in 17 colors

Question 5

what was crocs first marketing campaign? with who?

Answer 5

ugly can be beautiful

jonathan shoenberg from TD advertising and designs

he wore the shoes while traveling and they caught peoples’ eyes - “those are so ugly; where can i get a pair?”

they were so ugly they got your attention whether you liked it or not

Question 6

how did jibbitz start and how did they help crocs?

Answer 6

started as parents decorating their kids crocs with charms (sheri and rich schmelzer)

allowed for mass personalization- made crocs bespoke (custom)

Question 7

clogs started to go out of style; how did crocs make them relevant again?

Answer 7

1) authentic collabs with celebrities and companies (KFC and hidden valley) also adds new segments - their fans

got younger generation hooked in hopes that older generation would follow

limited edition creates scarcity mindset so people buy quickly

2) come as you are campaign

included diverse bunch of celebrities who all love crocs

crocs has a perfect shoe for everyone

Question 8

how did covid 19 actually help crocs?

Answer 8

people didn’t care how they looked since they were working from home - started prioritizing comfort

crocs are easy to clean

crocs donated shoes to healthcare workers - made themselves known for doing good for the community

Question 9

downsides of a niche consumer base

Answer 9

requires more research on what consumers want

less potential buyers but also less competition

Question 10

features of crocs shoes that helped them expand their consumer base

Answer 10

comfortable and easy to clean –> attracted hospital workers, servers, etc

were also approved by medical organization for people with diabetes

Question 11

how can knock-offs hurt the real brand?

Answer 11

from a distance, other people cannot tell if it’s real or fake, but they can tell if it looks worn or low quality

they might then believe that the real crocs brand is low quality when in reality they saw a person wearing croc dupes that were falling apart

Question 12

are we always consuming?

Answer 12

yes, we are always consuming space, air, time, clothes, buildings, furniture, etc

consuming can also be thinking about a past or future purchase

Question 13

what is the poverty tax

Answer 13

the idea that lower SES people end up paying a greater cost for goods because they don’t have the luxury of buying high quality up front and having that product last a lifetime

they have to keep buying cheaper replacements which adds up

Question 14

what is the difference between a need and a want

Answer 14

need: discomforting human condition which must be perceived by the self (can be physical or mental)

a want is a desire for a specific object or product - can be a solution to a need

Question 15

what is the ultimate marketing goal?

Answer 15

create consumer value and satisfaction

Question 16

importance of picking a price for a product

Answer 16

influences consumer value - how much they think the product should perform, how long it should last, the quality, etc

very easy to disappoint the consumer by picking a high price

Question 17

what are the 4 P’s?

Answer 17

price

place

promotion

product

Question 18

what are price’s tools?

Answer 18

list price, discounts, payment plans, credit terms

Question 19

what are product’s tools?

Answer 19

variety, quality, design, brand name, packaging

Question 20

what are promotion’s tools?

Answer 20

ads, personal selling, sales promotion, PR

Question 21

what are place’s tools?

Answer 21

channels, coverage, inventory, logistics, assortments, transportation

Question 22

3 reasons to study consumer behavior

Answer 22

1) improve business performance: anticipate customer needs via specific marketing strategies

2) influence public policy: improve society’s wellbeing (ex. warnings to take birth control on accutane; FDA nutrition label requirements)

3) help consumers make better decisions via social marketing: educate people about destructive habits/products, promote good behaviors (ex. educate on how to read nutrition labels)

Question 23

what are the 3 essentials of consumer behavior?

Answer 23

1) exchange: between parties - each gives up something of lesser value for something of greater value

2) resources: time, knowledge, energy, social capital (can use money in place of any of these)

3) value: total net benefits we get from an exchange - is the underlying goal of all exchanges - value is conveyed when a consumer’s need is met

Question 24

what are the different types of value? 4 and they are not mutually exclusive

Answer 24

1) utility/functionality: does the product do what you expected?

2) social: does the product help you maintain social relationships? maintain a positive image?

3) ego/identity: does the product help you build or convey your identity or align with what you believe in?

4) recreation/hedonism: does the product put you in a good mood?

Question 25

what is the difference between value and delight

Answer 25

value: a consumer's overall rating of the product's utility based on the costs and benefits delight: exceeding a consumer's expected net gains (value) and it gets them to come back

Question 26

reason for naming the brand lululemon

Answer 26

the letter L is not pronounced in japan - the presence of L's indicates that the brand is American and of high status

Question 27

how did chip wilson delight consumers with lululemon

Answer 27

consumers expected them to be more form-fitting than their previous yoga clothes but were surprised about the sweat-wicking properties

Question 28

what are two reasons for humans' excessive consumption

Answer 28

1) need to stimulate our larger brains 2) other animals don't have prestige (giving status to others without earning it through competition/dominance behaviors) - we use products to signal status

Question 29

what happens to male consumption when they are looking for a mate?

Answer 29

it becomes more conspicuous - more obvious - they want to signal that they have money

Question 30

how do status and shame drive consumption?

Answer 30

fear of being judged negatively by peers (and having them think you're low status) may cause people to purchase things to improve their perceived status people differentiated between store-bought and homemade clothes around the industrial revolution

Question 31

argument that marketing does not cause needs

Question 32

argument that marketing does cause needs

Question 33

do things actually get used after they're bought

Answer 33

no, only 1% of materials are in use 6 months after sale

Question 34

what are planned and perceived obsolescence and what problem do they cause

Answer 34

planned is when the manufacturer designs the product to stop working at a certain point, forcing the customer to buy a new one perceived is when the consumer feels like the product has gone out of style so they want to buy the newest version problem: dilemma of the commons - what these people/consumers think is good for them (always buying the newest version or making consumers by the newest version) is bad for the environment which negatively impacts everyone else

Question 35

ways to lower your carbon footprint

Answer 35

buy from companies that source materials responsibly buy less or buy things you will actually use eat less meat use less single-use plastics buy quality not fast fashion

Question 36

why do we need to do market research?

Answer 36

so companies produce what consumers actually want, not what the company thinks they want to decrease the risk of a product not selling well

Question 37

what are basic and applied market research

Answer 37

basic: look for general relationships/trends between variables - no specific situations - can be used to advance a general theory applied: looks at one relationship in a specific situation - trying to address a specific problem/goal

Question 38

why did "new coke" not do well?

Answer 38

coke felt threatened by pepsi - people preferred pepsi in blind taste tests and coke believed it was because pepsi was sweeter so they changed the coke formula people didn't like the new coke - they didn't like the taste and the new name/label disrupted their emotional connection/identity with the original coke

Question 39

what are the 2 main distinctions in types of research methods

Answer 39

primary vs secondary: was it done by you, or are you collecting data that other researchers already had qualitative vs quantitative: are you observing how specific groups of people behave in certain situations, or getting numbers from large surveys to determine correlation and causation *do qualitative first (more expensive) and use qualitative to inform quantitative*

Question 40

types of research methods by goal

Answer 40

exploratory 1) focus groups 2) in-depth interviews 3) projective tests 4) observation descriptive 1) longitudinal studies 2) surveys correlational/causal 1) correlational 2) causal experiments

Question 41

key points of focus groups

Answer 41

8-12 people discussing a product, advertisement, etc moderator to prevent groupthink group is intentionally biased to fit the situation/product question order matters: general before specific, behavior before attitude, positive before negative, unaided before aided

Question 42

key points of in-depth interviews

Answer 42

one-on-one with an interviewer for an hour+ may cover sensitive topics not easily discussed in group settings establish rapport and trust tims consuming and expensive

Question 43

key points of projective tests

Answer 43

person projects their underlying thoughts/feelings about a product onto an ambiguous stimulus subject to bias from interpreter can get consumer insight on sensitive/uncomfortable topics

Question 44

key points of observation

Answer 44

obtrusive and unobtrusive people may act different if they know they are being watched can observe actual behavior but don't know consumer's thoughts can be hard/subjective to score

Question 45

key points of longitudinal studies

Answer 45

follow a group of people over time true panel: repeated measures of the same variables each time omnibus panel: using different measures and variables over the time period expensive and possible attrition (need to make sure there aren't any systemic similarities between people that drop out)

Question 46

key points of surveys

Answer 46

self-selection bias useful for getting info from a large group potential bias from interviewer, question wording, and social desireability

Question 47

key points of correlations

Answer 47

tells you if variables are associated but cannot tell you the direction of association (cause) make use of natural groups allows for study of variables that would otherwise be unethical or impossible

Question 48

key points of causal experiments

Answer 48

2 requirements: 1) random assignment to control or experimental groups means any difference between groups has to be because of the treatment (change in independent variable) 2) manipulation of one or more variable (independent variables) type I error - false positive type II error - false neg

Question 49

purpose of segmentation

Answer 49

tailor marketing and products to manipulate peoples' spending and increase efficiency and profit

Question 50

what did orbitz do differently for mac and PC users and why

Answer 50

showed mac users more upscale hotels (4 and 5 stars) and higher priced rooms with more amenities they did this since mac users were already likely to spend $20-30 more on a room per night and more likely to choose a 4-5 start hotel showed the consumer options they liked and got more money

Question 51

what's the compromise effect

Answer 51

people buy the middle priced option so you can get them to spend more by changing the anchor prices

Question 52

aggregation

Answer 52

type of segmentation that uses undifferentiated mass marketing used in rare cases where consumer satisfaction doesn't matter, where all consumers have an equal need for a product, in small markets where further dividing the population would not be profitable

Question 53

pros and cons of aggregation

Answer 53

pros: economical - don't have to do a lot of research because you're not tailoring the product to a segment cons: inefficient and ineffective if customer satisfaction is an important factor

Question 54

market segmentation

Answer 54

tailoring marketing and products to a subgroup of the population that has different behaviors, needs, etc

Question 55

2 assumptions underlying segmenting

Answer 55

1) preference heterogeneity - not every consumer has the same desires 2) by tailoring your marketing strategy to fit a certain group of people, you can make the product appealing enough to offset the cost of the market research

Question 56

pros of segmenting

Answer 56

reveals opportunities for a company to make a new product targeted at a specific segment (find segments with unmet needs or wants) increased consumer satisfaction (one size fits all doesn't truly satisfy anyone) convenient for the consumer (showing them ads of things they like)

Question 57

4 steps of segmentation

Answer 57

1) identify product related need sets (what needs are unmet) - can use top down or bottom up (specific to general or general to specific) 2) group consumers with similar need sets - do concept testing to see how these consumers react to the product idea 3) describe each group - you have consumers with a similar need set but what else is similar among them? (demographic, geographic, psychographic, behavior, benefits sought) 4) select segment(s) to serve - need at least 3 of the 6 points to be profitable

Question 58

points that make a segment attractive

Answer 58

1) identifiable with clear distinctions between other segments 2) substantial size where there are enough consumers to profit 3) accessible and able to reach for advertising 4) stable and able to turn a profit over a long period of time 5) differentiable from other segments 6) actionable and able to create products and marketing campaigns for the people in that segment

Question 59

2 key demographics

Answer 59

population size and distribution occupation (reflects income, education, impacts lifestyle)

Question 60

gendered marketing

Answer 60

women end up paying more allows brands to sell more and charge more (instead of buying one type of soap, buy men's and women's soap but the women's costs more)

Question 61

what is gender contamination

Answer 61

when a product becomes so associated with one gender that the other gender won't buy it - often need to hypermasculize products associated with women to tell men it's okay for them to buy it

Question 62

what is the pink tax and has legislation against it been successful?

Answer 62

pink tax is the idea that women pay more for toys and personal care products it's hard to implement laws because products must contain the same ingredients, have the same intended use, have the same features, and have the same design - the only difference being color/gender

Question 63

which states have pink tax legislation

Answer 63

CA pink tax law 2023, NY banned pink tax in 2020, CA req same prices at salons and dry cleaners

Question 64

what is majority fallacy

Answer 64

going after the biggest, most appealing segment might not be the best option since it will also have the most competition (targeting the same segment as the majority)

Question 65

what is cannibalization

Answer 65

products within the same company compete against each other ex) old navy, GAP, banana republic are clothing stores owned by the same company - but each has different price ranges so they are geared toward slightly different segments