Class 1

Question 1

Marketing is about

Answer 1

Creating Value

Focusing on benefits for customers

Question 2

Marketing Myopia

Answer 2

shift from operation to customer centricity

Companies should
Focus on the benefit
Jobs to be done

Question 3

Word of mouth

Answer 3

Very attractive way to attract new customers

Retention over acquisition (more profitable)

Question 4

Prospect theory

Answer 4

People are risk averse towards gains

Risk seeking towards losses

—> stock market (sell good stocks / keep bad ones)

Question 5

Endowment effect

Answer 5

Explains why people overvalue things they own and the imbalance of the asking price and what a consumer is willing to pay for it

Question 6

Inconsistency

Answer 6

Inconsistent towards previous choices

Or what they say that they would do (influenced by context - French music - French wine (mostly unconscious))

Question 7

Choice overload

Answer 7

Aim to simplify their choices (better decisions when less choices golden rule of 5+-2)

Question 8

Attribute substitution

Answer 8

3 alternatives -2 bad- 1good suddenly the one becomes clearly the most chosen choice

Question 9

Choice aversion

Answer 9

3 choice 2 similar and one different - consumer will choose the different one

Question 10

Immediate gratification

Answer 10

Prefer to eat fruit in the future but candy now

Question 11

Strategies

Answer 11

Market driven - focus on the customer

Market driving - create new customers