Marketing Exam 2

Question 1

The purpose of marketing research is to…

Answer 1

…inform decisions and reduce uncertainty

Question 2

What is the Hawthorne effect?

Answer 2

This effect describes changes in behavior that occur when subjects are aware they’re being observed

Question 3

Pros and cons of in-person focus groups

Answer 3

More (non-verbal) data, higher risk of bias due to social influence and conformity

Question 4

Issue with loaded question?

Answer 4

Unjustified assumption

Question 5

Issue with leading question?

Answer 5

Question impied/leads to correct/desired answer

Question 6

Issue with unclear question

Answer 6

Overly technical, excessive jargon

Question 7

Pros of primary data

Answer 7

Specific to objective, data is current

Question 8

Cons of primary data

Answer 8

Expensive, time consuming, risk of bias

Question 9

Brand Equity

Answer 9

Percieved value that brand adds to product

Question 10

Licensing

Answer 10

Selling the right to use brand name for a specific purpose and time period

Question 11

Co-branding

Answer 11

Two brands collaborating to market a new product

Question 12

Brand extension

Answer 12

Taking an existing brand into a new product category

Question 13

Line extension

Answer 13

Itroducing a new product in an existing product category

Question 14

Issues with line extensions

Answer 14

Cannibalization of existing products

Question 15

Brand extension issues

Answer 15

Low brand equity could lead to failed extensions, brand may not fit in new category

Question 16

Product levels

Answer 16

Core benefits, actual product and augmented product

Question 17

Convenience product type characteristics

Answer 17

Low involvement and low loyalty (gum)

Question 18

Shopping product type characteristics

Answer 18

High involvement and low loyalty (cars)

Question 19

Specialty product type characteristics

Answer 19

High involvement and high loyalty (luxury clothes/watches)

Question 20

Unsought product type characteristics

Answer 20

Moderate involvement and low loyalty

Question 21

A product can only be called new for how long?

Answer 21

6 months

Question 22

CoA - Innovators

Answer 22

Young, risk-takers, high income

Question 23

CoA - Early Adopters

Answer 23

Open to change, opinion leaders, heavy media users (PRE CHASM)

Question 24

CoA - Early Majority

Answer 24

Middle class, avoid being first or last, deliberate + cautious (POST CHASM)

Question 25

CoA - Late Majority

Answer 25

Skeptics, older, lower income

Question 26

CoA - Laggards

Answer 26

Conservative, highly risk averse, bound by tradition

Question 27

Product life cycle

Answer 27

Introduction, growth, maturity and decline

Question 28

Marketing Mix during introduction

Answer 28

Product: few variations Promotion: goal is building awareness and inducing trial Place: limited distribution network Price: high to recover costs or low to quickly gain market share

Question 29

Marketing mix during growth

Answer 29

Product: new variations, enhanced features Promotion: Differentiate brand, promotions to increase market share Place: Increased distribution network Price: may increase but stabalizes/drops with competiton

Question 30

Marketing mix during maturity

Answer 30

Product: further (minor) modifications Promotion: remind custoemrs to keep buying, maintain market share Place: continual increases to distribution Price: remains the same or drops more due to competition

Question 31

Marketing mix during decline

Answer 31

Product: weak-selling items phased out Promotion: advertising drastically reduced, targets loyalty Place: Distribution outlets shrink considerably Price: further drops

Question 32

Definition of advertising

Answer 32

impersonal, sponsored, one-way communication

Question 33

Definition of advertising campaign

Answer 33

A series of related ads with a common theme or slogan

Question 34

Types of media

Answer 34

Owned, earned and paid

Question 35

Definition of public relations

Answer 35

Communication (other than paid media) to foster a favorable image and relationship between the company/brand and the public