Test #2

Question 1

What is the Marketing Myopia?

Answer 1

Being shortsighted- focusing more on products and less on the customer - IE trains not transportation industry

Question 2

What is the NEW Marketing Myopia?

Answer 2

Not focusing on shareholders or the consequences of actions IE McDonald’s offering supersizing but not caring about public health outcomes

Question 3

Subculture of Consumption - who are they?

Answer 3

People that share these three things: Certain Structure, Ethos and Transformation of self (SET)

Question 4

What does SET stand for?

Answer 4

Structure, Ethos and Transformation of self

Question 5

What are the four types of data that we studied?

Answer 5

N - nominal, O - Ordinal, I - Interval, R - Ratio

Question 6

What is nominal data?

Answer 6

Categorical factors, non-metric - gender, etc

Question 7

What is ordinal data?

Answer 7

Categorical factors, non-metric but can be arranged in a certain order (freshman, sophomore, or ranges of how often you consume coffee outside of home)

Question 8

What is interval data?

Answer 8

higher level of data, more definition, metric - equal interval between (strongly disagree vs strongly agree - 7 scale or any range, can calculate means (temp) - doesn’t have a true zero

Question 9

What is ratio data?

Answer 9

higher level of data, more definition, metric (pounds with ounces as weight, age as 24.75)
has a true zero

Question 10

What data is categorical?

Answer 10

Nominal and ordinal

Question 11

What data can you use x2 (kai squared) for?

Answer 11

Categorical (nominal and ordinal)

Question 12

What is a x^2 test of independence for?

Answer 12

To test two factors and see if they are related or not

Question 13

What does “P value” stand for?

Answer 13

Probability of error

Question 14

What if the asymptotic significance is under 0.01?

Answer 14

Then we are 99.99 certain there is a correlation

Question 15

What is anchoring?

Answer 15

Customers getting stuck on a certain price and remembering that

Question 16

What is representative heuristics?

Answer 16

Whatever is most represented is used as a shortcut to make a quick judgement - IE vegan into herbs and essential oils - are they more likely to be a holistic healer or a school teacher? Natural to say healer, but statistically more likely to be a school teacher.

Question 17

What is the prospect theory?

Answer 17

Losses Loom Larger - no one wants to lose money so they will make irrational decision to avoid.

Question 18

Reference groups

Answer 18

Want to be like them or DONT want to be like them

Question 19

Perceptions

Answer 19

Moving from short term to long term memories

Question 20

Conjunctive heuristic

Answer 20

Things right next to each other - TVs at Best Buy

Question 21

Types of lexicographic heuristics

Answer 21

Satisficing - good enough
Compensatory - one thing can make up for another
Lexicographic - what is the peak best thing?
Conjunctive rule - what is minimum i want and what fits with that?
Disjunctive - dissing certain attributes
Elimination - by aspects - look at most important characteristics first and eliminate accordingly

Question 22

Satisficing

Answer 22

good enough choice

Question 23

Compensatory

Answer 23

one thing can make up for another

Question 24

Lexicographic

Answer 24

what is the peak best thing?

Question 25

Conjunctive rule

Answer 25

what is minimum i want and what fits with that?

Question 26

Disjunctive

Answer 26

dissing certain attributes

Question 27

Elimination - by aspects -

Answer 27

look at most important characteristics first and eliminate accordingly

Question 28

Rule for memory exercises

Answer 28

7 plus or minus 2 (don’t go over 9 pieces of information)

Question 29

Primacy vs recency effect

Answer 29

things recalled from beginning vs end

Question 30

Straight rebuy

Answer 30

no thought involved, easy and just do the basic that you always have done

Question 31

Modified rebuy

Answer 31

rugs in a hotel or computers for a lab - maybe some companies will make bids and medium cost involvement

Question 32

New task

Answer 32

lots more bids and incentives involved, lots of involvement, for the campus it might be for a new glassblowing studio or new arts building

Question 33

What types of rebuys are there?

Answer 33

Straight rebuy, modified rebuy, new task

Question 34

BUYING CENTER

Answer 34

includes initiators, users, influencers, deciders, approvers, buyers, gatekeepers (administrative people can open or close the flow of information)

Question 35

Vampire Effect

Answer 35

Overshadowing and negatively affects the brand -- celeb endorsements so distracting that people forget the brand

Question 36

If Kai squared is high, p-value is what?

Answer 36

Low - inverse relationship

Question 37

What do T-tests test?

Answer 37

Two means

Question 38

Segmentation

Answer 38

Bundling people into smaller or larger groups to target (running shoe companies)

Question 39

Segment clustering

Answer 39

Different people care about different things (people and their hotel choices)

Question 40

Undifferentiated targeting strategy

Answer 40

New Balance pretty much treats everyone the same and doesn’t change it up based on what different segments there are

Question 41

Concentrated targeting strategy

Answer 41

going after one specific group that is the same

Question 42

Multi-segment targeting strategy

Answer 42

Splitting up and going after multiple groups with different strategies for each

Question 43

Direct investment

Answer 43

going somewhere and starting a whole factory and starting somewhere new

Question 44

Global strategy

Answer 44

strategy doesnt change no matter where you go - Coca Cola

Question 45

Multi-domestic strategy

Answer 45

Different tactics for different areas (Nescafe for instant coffee in different regions of Asia)

Question 46

Bottom of the pyramid idea

Answer 46

3 billion people living on $2.50 a day