1ZM11 - Marketing & innovation

Question 1

endownment effect

Answer 1

People overvalue goods in their possesion over those they do not posses

(lose mug for €9 vs. buy a mug for €3)

Question 2

Status quo bias

Answer 2

People are unlikely to give up current things / habits
the effect grows stronger over time
gains of new product have to far outweigh the loss of the old product

Question 3

9x effect

Answer 3

consumers overvalue existing products times 3, whereas producers overvalue new features by 3 times. Thus creating a 9x mismatch between what customers want vs. what companies think customers want

Question 4

CVOMIS

Answer 4

Customer Value Oriented Marketing Innovation System

• learn about customer determined performance outcomes of value delivery
• the causes of that performance
• provide both short & long term insights + patterns of change

Question 5

3 methods for understanding customer value

Answer 5

𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐧𝐞𝐞𝐝𝐬 𝐫𝐞𝐬𝐞𝐚𝐫𝐜𝐡 (lead user analysis, co-creation)
𝐓𝐫𝐚𝐝𝐞-𝐨𝐟𝐟 𝐚𝐧𝐚𝐥𝐲𝐬𝐢𝐬 (conjoint analysis)
𝐌𝐞𝐚𝐧𝐬-𝐞𝐧𝐝 𝐜𝐡𝐚𝐢𝐧 (laddering, keep asking why which benefits sought)

Question 6

what 4 types of innovation exist according to Gourville (2006)

Answer 6

1. Degree of behaviour change required: High - Low
2. Degree of product change: High - Low

Easy sells ( 1 Low, 2 Low)
Smash hits (1 Low, 2 High)
Sure failures (1 High, 2 Low)
Long hauls (1 High, 2 High)

Question 7

marketing excellence

Answer 7

A type of firm strategy focused on achieving organic growth by executing the marketing ecosystem priority, end user priority & marketing agile priority

Focus on growth trough differentiation, ME is an environment-shaping concept

Question 8

Marketing ecosystem priority

Answer 8

A firm’s strategic means of growing the business by developing mutually beneficial systems of networks. Via;

• Building ecosystems in proximal & distal networks
• Fostering integrated ecosystems

An important part are ‘hubs’

Question 9

End-user priority

Answer 9

A firm’s strategic emphasis on 𝐞𝐧𝐠𝐚𝐠𝐢𝐧𝐠with the final customer and leveraging the final customer insights for 𝐠𝐫𝐨𝐰𝐢𝐧𝐠 the business

Question 10

Marketing agile priority

Answer 10

A firm’s strategic means for executing growth activities by the marketing organization and its members trough simplified structures & processes, fast decision making + trail&error learning

Question 11

What are KIM’s ?

Answer 11

Knowledge integration mechanisms=
Formal processes & structures to capture, analyse and utilize knowledge

(documentation, meetings, reviews, reflection etc)

Question 12

What 4 dimensions does market knowledge consist of?

Answer 12

𝐁𝐫𝐞𝐚𝐝𝐭𝐡= firm's understanding of a wide range of diverse customers & competitor types and factors that describe them
𝐃𝐞𝐩𝐭𝐡= level of sophistication & complexity of a firm's knowledge on customers & competitors
𝐓𝐚𝐜𝐢𝐭𝐧𝐞𝐬𝐬= extent to which market knowledge is difficult to codify & communicate
𝐒𝐩𝐞𝐜𝐢𝐟𝐢𝐜𝐢𝐭𝐲= extent to which firm's knowledge is tailored to the requirements of specific contexts in which it is maximally effective but loses its value in other contexts

Question 13

What 2 dimensions do sales & marketing differ in?

Answer 13

𝐎𝐫𝐢𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧= sales is more operational & short-term, marketing more strategic & longer term
𝐂𝐨𝐦𝐩𝐞𝐭𝐞𝐧𝐜𝐞= sales has higher levels of market-specific knowledge which is relevant for other departments to do NPD well.

Question 14

What are “emerging” & “mature” markets according to Rosa (2005)

Answer 14

𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠: Markets in which consumers face new product concepts that do not fit into existing product categories
𝐌𝐚𝐭𝐮𝐫𝐞: markets in which product categories are stable & well defined

Question 15

which 3 types of storytellers are needed for diffusion & acceptance of an innovation

Answer 15

𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐨𝐫𝐬; share stories that link various heterogeneous groups of people
𝐌𝐚𝐯𝐞𝐧𝐬; information brokers who share detailed stories about product attributes & uses
𝐒𝐚𝐥𝐞𝐬𝐩𝐞𝐨𝐩𝐥𝐞; tell stories that move others to action

Question 16

What is “isomorphism” & which 3 kinds of processes exist in organizations to adopt practices?

Answer 16

Organizations in the same environment will adopt similar practices, becoming isomorphic over time. They do this because of conformity and legitimacy motives

Coercive isomorphism
Mimetic isomorphism
Normative isomorphism

Question 17

what are the 5 innovation charachteristics (rogers)

Answer 17

Relative advantage
Compatability
Complexity
Trailability
Observability

Question 18

Which 3 types of conjoint analysis exist?

Answer 18

𝐂𝐕𝐀 - 𝐂𝐨𝐧𝐣𝐨𝐢𝐧𝐭 𝐕𝐚𝐥𝐮𝐞 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬
𝐀𝐂𝐀 - 𝐀𝐝𝐚𝐩𝐭𝐢𝐯𝐞 𝐂𝐨𝐧𝐣𝐨𝐢𝐧𝐭 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬
𝐂𝐁𝐂 - 𝐂𝐡𝐨𝐢𝐜𝐞 𝐁𝐚𝐬𝐞𝐝 𝐂𝐨𝐧𝐣𝐨𝐢𝐧𝐭

Question 19

Customer value

Answer 19

A customer’s perceived preference for & 𝐞𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 of those product 𝐚𝐭𝐭𝐫𝐢𝐛𝐮𝐭𝐞𝐬, 𝐚𝐭𝐭𝐫𝐢𝐛𝐮𝐭𝐞 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞𝐬 and 𝐜𝐨𝐧𝐬𝐞𝐪𝐮𝐞𝐧𝐜𝐞𝐬 arising from use that facilitate or block achieving the customer’s 𝐠𝐨𝐚𝐥𝐬 and purposes in use situations

Question 20

what is the difference between the 𝐩𝐫𝐨𝐝𝐮𝐜𝐞𝐫 𝐞𝐧𝐚𝐜𝐭𝐦𝐞𝐧𝐭 𝐜𝐲𝐜𝐥𝐞 & the 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐞𝐧𝐚𝐜𝐭𝐦𝐞𝐧𝐭 𝐜𝐲𝐜𝐥𝐞?

Answer 20

the 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐞𝐧𝐚𝐜𝐭𝐦𝐞𝐧𝐭 𝐜𝐲𝐜𝐥𝐞 describes how consumer’s product categories are formed and behaviours develop, whereass the 𝐩𝐫𝐨𝐝𝐮𝐜𝐞𝐫 𝐞𝐧𝐚𝐜𝐭𝐦𝐞𝐧𝐭 𝐜𝐲𝐜𝐥𝐞 describes how producer’s product categories are formed and behaviours develop

everything is focused on generating a joint meaning of a product (use NGT to discover hierarchies)

Question 21

what are 3 sources of network effects?

Answer 21

𝐝𝐢𝐫𝐞𝐜𝐭 𝐞𝐟𝐟𝐞𝐜𝐭𝐬
𝐢𝐧𝐝𝐢𝐫𝐞𝐜𝐭 𝐞𝐟𝐟𝐞𝐜𝐭𝐬
𝐬𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐢𝐳𝐚𝐭𝐢𝐨𝐧

Question 22

what is the difference between a waterfall & sprinkler strategy?

Answer 22

waterfall= stepwise introduction
sprinkler= direct & full-fledged introduction

Question 23

what are 3 rules for conjoint analysis?

Answer 23

• don’t include too many levels for attributes
• balance levels of attributes (number of levels effect)
• make sure levels can combine to possible combinations

Question 24

network effects products

Answer 24

the value of a product to it’s users increases as more people use the same good

Question 25

What is the AIDA model?

Answer 25

The AIDA model is used for modelling adoption & communication processes, it stands for;

𝐀𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧
𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭
𝐃𝐞𝐬𝐢𝐫𝐞
𝐀𝐜𝐭𝐢𝐨𝐧

for radically new products there first is an education stage

Question 26

What is Accessability-Diagnosticity theory?

Answer 26

The likelihood that a piece of information is used depends on its;
𝐀𝐜𝐜𝐞𝐬𝐚𝐛𝐢𝐥𝐢𝐭𝐲= it’s salience & accessibility of related information in the mind
𝐃𝐢𝐚𝐠𝐧𝐨𝐬𝐭𝐢𝐜𝐢𝐭𝐲= it’s usefulness for judgement

High AD info is used more

Question 27

What are the four stages of customer loyalty (oliver 1999)

Answer 27

𝐂𝐨𝐠𝐧𝐢𝐭𝐢𝐯𝐞 𝐥𝐨𝐲𝐚𝐥𝐭𝐲= based on costs & benefits
𝐀𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐥𝐨𝐲𝐚𝐥𝐭𝐲= based on satisfactory experiences
𝐂𝐨𝐧𝐚𝐭𝐢𝐯𝐞 𝐥𝐨𝐲𝐚𝐥𝐭𝐲= based on habits (intention to rebuy)
𝐀𝐜𝐭𝐢𝐨𝐧 𝐥𝐨𝐲𝐚𝐥𝐭𝐲= commitment to act, despite obstacles

Question 28

what is Customer Lifetime Value (CLV)? what are limitations to it’s measurements

Answer 28

𝐂𝐋𝐕=the net profit contributed to the whole future relationship with 1 customer

• leaving customers are gone for good
• infinite time horizon
• competitor effects not taken into account

Question 29

Customer equity

Answer 29

The combined CLV of all customers of a firm.

Question 30

what is 𝐯𝐚𝐥𝐮𝐞 𝐛𝐚𝐬𝐞𝐝 𝐬𝐞𝐥𝐥𝐢𝐧𝐠”and how does it contribute to selling performance?

Answer 30

𝐯𝐚𝐥𝐮𝐞 𝐛𝐚𝐬𝐞𝐝 𝐬𝐞𝐥𝐥𝐢𝐧𝐠= salesperson’s effort to advance customer value together with the customer by contributing to the customer’s business profitability

value creation via;

• innovate effective offerings
• assist in applying the offering effectively
• match buyer & seller’s processes for better results

Question 31

draw; 𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐝𝐞𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭 𝐢𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞 model

Answer 31

zie schrift

Question 32

draw; 𝐊𝐧𝐨𝐰𝐥𝐞𝐝𝐠𝐞 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦𝐬 (𝐊𝐈𝐌) model

Answer 32

zie schrift

Question 33

draw; 𝐬𝐚𝐥𝐞𝐬, 𝐑&𝐃, 𝐦𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐜𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐍𝐏𝐃 model

Answer 33

zie schrift

Question 34

draw; 𝐚𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐩𝐫𝐨𝐜𝐞𝐬𝐬 model

Answer 34

zie schrift

Question 35

draw; 𝐂𝐈𝐒 & 𝐂𝐈𝐂 model

Answer 35

zie schrift

Question 36

describe: 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐢𝐧𝐯𝐨𝐥𝐯𝐞𝐦𝐞𝐧𝐭 (𝐥𝐞𝐜𝐭𝐮𝐫𝐞)

Answer 36

zie schrift

Question 37

draw: 𝐧𝐞𝐭𝐰𝐨𝐫𝐤 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬 model

Answer 37

zie schrift

Question 38

describe: 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 𝐫𝐚𝐝𝐢𝐜𝐚𝐥 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧𝐬 & 𝐬𝐢𝐠𝐧𝐚𝐥𝐥𝐢𝐧𝐠 model

Answer 38

zie schrift

Question 38

describe; 𝐥𝐢𝐧𝐞 𝐞𝐱𝐭𝐞𝐧𝐬𝐢𝐨𝐧𝐬 model

Answer 38

zie schrift

Question 39

draw: 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬 (behavioral loyalty) model

Answer 39

zie schrift

Question 40

describe: 𝐦𝐢𝐦𝐞𝐭𝐢𝐜 𝐦𝐨𝐭𝐢𝐯𝐞𝐬 model

Answer 40

zie schrift

Question 41

draw: 𝐯𝐚𝐥𝐮𝐞 𝐛𝐚𝐬𝐞𝐝 𝐬𝐞𝐥𝐥𝐢𝐧𝐠 (𝐕𝐁𝐒) model

Answer 41

zie schrift

Question 42

describe: 𝐬𝐞𝐫𝐯𝐢𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧 model

Answer 42

zie schrift

Question 43

Which 2 perspectives on Market orientation exist?

Answer 43

Cultural; MO firms contiously & systematticaly focus on creating superior customer value

Behavioural; organization wide generation of market intelligence, sharing that info and responding to it

Question 44

draw; Abell matrix

Answer 44

(alternative)Technologies (hybrid, diesel, electric)
Customer segments (salespeople, housewives)
Customer benefits (comfort, status)