MOS 1021 Exam 2

Question 1

Training

Answer 1

-process of teaching employees the basic knowledge, skills, behaviours they need to perform their jobs

-ensures employees can do their job correctly and safely

-applicable to new hires/existing employees

-assessed on a regular basis

Question 2

Benefits of Training

Answer 2

-increased job performance

-decreased accidents/ injuries

-increased employee engagement/satisfaction

-greater employee retention

-enhanced employer brand

Question 3

Benefits of Training: Negligent Training

Answer 3

-employer fails to provide sufficient training to employee

-actions of employee in injuries/loss

-can stem from under-training or improper following of training procedures

-claimed by hammered party

Example: 20 hours of training, only exceeded 10 hours. Injures co-worker. That co-worker can sue the company for negligent training.

Question 4

Training Program Development - Step 1: Training Needs Analysis

Answer 4

Process of determining the training that needs to be completed so that employees can do their job well.

-Organizational analysis:
establishes training context by examining (strategic goals of the organization, organizational training climate, Barries to training)

barriers to training (e.g., budget, time, space, expertise)

-Task analysis:
identifies key job-related tasks (determine performance standard) ex servers should provide accurate food/wine pairing to customers without error and without the need for notes

identifies key job-related tasks (determine performance standard, frequency, skills and knowledge required, conditions under which task is performed)

observable activities designed to contribute to the accomplishment of a goal

informs the content of the training and its objectives

-Person analysis:
identifies who will receive the training

clarifies trainees’ existing level of knowledge

examines characteristics if trainees (e.g., availability, learning styles)

Question 5

Training Program Development - Step 2: Method of Instruction

Traditional Training Techniques: Classroom Training

Answer 5

-typically, instructor leading group in lecture-style session

-effective for large groups

-loss of productivity

-slower feedback

-blended learning for higher engagement

Question 6

Training Program Development - Step 2: Method of Instruction

Traditional Training Techniques: On-the-job Training

Answer 6

-trainee practices job under skills at workplace under guidance

-regular feedback

-not taxing on resources

-trainee can be productive

-mentor may be ineffective

-accidents can occur

Question 7

Training Program Development - Step 2: Method of Instruction

Traditional Training Techniques: Adventure-based Training

Answer 7

-participating in challenging/structured physical activities

-cooperation, teamwork, trust, communication, problem-solving, conflict, management, leadership

-effective for team-based/managerial jobs.

-taxing on time/resources

-loss of productivity (sessions can take days

Question 8

Training Program Development - Step 2: Method of Instruction

Technology-Enabled Learning: E-Learning

Answer 8

-web based or computer-based

-typically less expensive than classroom training

-consistent

-dependent on learner motivation

Question 9

Training Program Development - Step 2: Method of Instruction

Technology-Enabled Learning: Simulations

Answer 9

-place trainees in situations similar to those encountered on the job

-immersive and realistic experience

-trainees tend to be very receptive to this approach

-expensive to develop/maintain

Example: Pilots, NASA

Question 9

Training Program Development - Step 3: Validation

Answer 9

-pilot-test program

-administer to representative sample of trainees

-assess whether training objectives have been met

Question 10

Training Program Development - Step 4: Implementation

Answer 10

-implement the training within organization

-aiming to maximize transfer of training (frequency feedback, opportunities to practice what is learned, similarity of training situation to job situation)

-transfer training: extent to which behaviours learned during training will be performed on the job.

Question 11

Training Program Development - Step 5: Kirkpatricks Training Evaluation Model

Answer 11

Level 1: Reaction
-reactions or feelings of trainees about the training
-was it enjoyable? engaging? relevant? effective?

Level 2: Learning
-assess whether trainees learned what they were supposed to learn

Level 3: Behaviour
-changes in performance exhibited on the job as a result of the training
-i.e., transfer of training

Level 4: Results
-assess organizational benefits that stem from training

Question 12

The Performance Management Process

Answer 12

-Organizational goals
-Employee objectives
-Monitoring and support
-Evaluation
-Consequences

Question 12

Performance Management: What is it?

Answer 12

-system that defines, measures, and develops the performance of the workforce within the organization

-aligns employees’ activities with the overall strategy of an organization

-benefits both employees and the organization

Question 13

Organizational Goals

Answer 13

-financial or non-financial outcomes that the organization hopes to achieve

example: increase corporate social responsibility of an organization

Question 13

Employee Objectives

Answer 13

-translate organizational goals into measurable and time-bound employee objectives

example: in respect to social responsibility: employees must take part in 3 volunteer opportunities posted by the company within a year

Question 14

Monitoring and Support

Answer 14

-monitoring, frequent feedback, provision of supports by organization

example: employee sets goal to volunteer, organization can give volunteer opportunities or offer to arrange transportation to volunteer sites, or offer training

Question 15

Evaluation

Answer 15

-assess degree to which objectives were met and set new objectives

Question 16

Consequences

Answer 16

-meaningful consequences administered, if applicable

Question 17

Benefits of Performance Management Systems

Answer 17

Strategic: aligns employee efforts and organizational goals

Administrative: informs administrative decisions-making

Developmental: help employees to improve and grow

Question 18

Performance Apprasial Methods: Alternation Ranking Method

Answer 18

-identify highest- and lowest-performing employees, in an iterative manner

-difficult in large organizations

-resultant feedback is not informative

Question 18

Performance Appraisal Methods: Graphic Rating Scale

Answer 18

-extent to which each employee shown proficiency on a given characteristic

-ratings are made using an established scale

-good feedback regarding specific characteristics

-lack of clarity between performance levels

Question 18

Performance Appraisal Methods: Forced Distribution Method

Answer 18

-predetermined percentage of employees placed into performance categories

-useful for large organizations

-may unfairly limit recognition of high-performing employees

-feedback may be limited

Question 18

Performance Appraisal Methods: Behaviourally Anchored Rating Scales (BARS)

Answer 18

-key performance dimensions are identified

-rating scale is developed for each performance dimension

-behavioural exemplars are developed for each level on the rating scale

-cleaver criteria and feedback

-time consuming to develop

Question 18

Peer

Answer 18

-knowledgable and present -similar to employee -understand core duties and responsibilities and how they should be performed -logrolling possible

Question 18

Supervisor

Answer 18

-knowledgable and motivated -limited observation opportunities

Question 19

Sources of Appraisal Information

Answer 19

-supervisor -peer -subordinate -self

Question 20

Subordinate

Answer 20

-lower position than employee being evaluated -usually rating employees of supervisors and managers -fear of consequences -over-emphasis on employee satisfaction -especially prominent with flat organization structured organizations

Question 20

Self

Answer 20

-aware of own behaviour -inflation of ratings -want to present themselves in best way possible

Question 21

Sources of Appraisal Information 360-Degree Appraisal

Answer 21

-using multiple rating sources when evaluating an employee -questionnaire made up of rating scales and open-ended items -confidential and anonymous -strengths and weaknesses identified: advantages: detailed feedback possible rater bias is reduced greater perception of fairness limitations: time-consuming follow-up not possible not applicable to all organizations

Question 22

Errors in Performance Measurement

Answer 22

-Primacy Effect: first impression made by employee affects all subsequence ratings Ex. If employee offends evaluator when they first meet, and the evaluator gives negative ratings of employee regardless of the behaviour, then this is a primacy effect -Recency Effect: ratings are based on most recent work behaviour Ex. Only remembers employees' most recent behaviour; forget their oldest behaviour or typical behaviour

Question 23

Rating Scale Errors: Leniency Error Strictness Error Central Tendency Error

Answer 23

-Leniency Error: assigning inaccurately high ratings to all employees -Strictness Error: assigning inaccurately low rating to all employees -Central Tendency Error: inaccurately rating all employees at/near the middle of a rating scale

Question 24

Marketing: What is it?

Answer 24

-the process of creating, communicating and delivering goods or services to meet organizational objectives and customer needs -help with development of product, inform decisions around where/how product is sold, develop strategies that help companies with customers even after product is sold

Question 25

Organizational objectives

Answer 25

-short-term and long-term goals that the organization seeks to accomplish, which allow it to become more successful.

Question 26

Customer needs

Answer 26

-states of felt deprivation, including physical, social and individual needs. A need is indemnified when someone feels like they are missing something in their life. Needing for food, water, belonging, self expression, etc. -needs help people be their best and most authentic self

Question 27

The Marketing Process

Answer 27

-series of marketing decisions and actions intended to address marketing goals -maximize customer value -customer value = customer benefit (quality, features, status) - customer cost (price, effort)

Question 28

The Marketing Process: Marketing Myopia

Answer 28

-disconnect between organizations and their customers -excessive focus on business needs (vs. customer needs) and on short-term goals (vs. long-term goals) -failure to innovate, adapt, research E.g., Blockbuster (didn't keep up with the trend in modern day)

Question 29

The Marketing Process: Situation Analysis

Answer 29

PLANNING AND RESEARCH PHASE -identify unfulfilled customer needs ex. need for masks -assess potential competitors (strengths and weaknesses) is there enough interest in this product? -assess internal capabilities (financial and non-finacle resources)

Question 30

The Marketing Process: Select Target Market

Answer 30

Markets: -customers who are willing and able to purchase our products Target Markets: -group sharing a number of defining qualities -direct marketing efforts to this group -assumption that all individuals in target market will respond similarly to marketing strategy E.g., Starbucks directed to people 25-40 years old, working professionals Users: -customers who ultimately purchase and use the product

Question 31

The Marketing Process: Develop Marketing Strategy

Answer 31

-plan to achieve objectives in current situation -coordinate marketing mix to appeal to target markets

Question 32

The Marketing Mix: Product

Answer 32

-finalize what product to market -important features -product design and packaging -product differentiation is important (how marketers differentiate their product vs. competitor's similar products.)

Question 33

The Marketing Mix: Price

Answer 33

-determine price of product -influenced by: cost of manufacturing, cost of distribution, cost of promotion, desired profit level, competition, desirability E.g., apple watch

Question 34

The Marketing Mix: Place (aka distribution strategy)

Answer 34

-how product gets to customers -transportation, if applicable -channel by which product sold (online, in store, both) -breadth of distribution (product availability) E.g., Tom Ford only 100 stores in the whole world.

Question 35

The Marketing Mix: Promotion

Answer 35

-develop messaging about products to highlight value (i.e., communication) should be directed at target market -currently easier to do, but hard to be effective

Question 36

The Marketing Process: Maintain Customer Relationships

Answer 36

-building relationships between organizations and customers to encourage repurchasing -Customer Relationship Management (CRM) programs and practices -collection of data (e.g., points cards, web tracking) Tim Hortons, Starbucks

Question 37

Evolution of Business Philosophies

Answer 37

Production Orientation 1900 Selling Orientation 1920-1930 The Hard Sell Marketing Orientation 1950-1990 Socially Responsible Marketing Orientation 1990-2000 Social Media Marketing Orientation 2006

Question 38

Production Orientation 1900

Answer 38

-Shortage of manufactured goods relative to demand -Focus on manufacturing quality products at affordable price -Little attention paid to customer needs -Mass production (large volume, consistent, lower cost) -Narrow product lines

Question 39

Selling Orientation 1920-1930

Answer 39

-Goal is to sell as many products as possible -Selling existing products rather than developing new ones -Focus is on sales and promotion -Little attention paid to customer needs -Prioritize short-term selling over long term relationships

Question 40

The Hard Sell

Answer 40

-Aggressive sales approach that uses forceful messaging -Sense of urgency designed to promote immediate purchase -Large volume of product information shared -May be seen as manipulative and overwhelming

Question 41

Marketing Orientation 1950-1990

Answer 41

-Blanket sales approaches ineffective -Focus is on customer needs -Research-driven programs -Develop new products and improve existing products -Increased customer loyalty

Question 42

Socially Responsible Marketing Orientation 1990-2000

Answer 42

-Customer choice is also value-driven (not just needs-based) -Customer purchases as a show of support for organizations -Environmental impact, labour standards, social causes

Question 43

Socially Responsible Marketing Orientation Cause Marketing

Answer 43

-Cooperative effort between a for-profit and a non-profit organization for their mutual benefit -Organizations does not change E.g., “Save Lids to Save Lives”

Question 44

Societal marketing concepts

Answer 44

-produce/deliver products that have minimal negative impact on society well-being E.g., Legos plant based pieces

Question 45

Social Media Marketing Orientation 2006

Answer 45

-Marketing within social media platforms -Create shareable content -Brand democratization: members of the general public are empowered to produce communication about a given brand

Question 46

Influencer Marketing

Answer 46

-organizations collaborate with individuals who have a social media following -influencers publish social media content that promotes the organization -endorsements from influencers serve as form of social proof -Psychology says….phenomenon whereby individuals copy the action of the others in ambiguous social situation (assume actions of others reflect correct behaviour) -Marketing says…tendency of individual to look to available customers opinions when purchasing product

Question 47

Social Media Marketing Orientation - Influencer Marketing: Congruence

Answer 47

- Congruence = product aligns with the reputation/identity of influencer -Assessed 372 followers of a fashion/beauty influencer -When the influencer was promoting congruent products: -More favourable attitude toward the product -Higher purchase intention -Higher recommendation intentions

Question 48

Environmental Scanning

Answer 48

-continually acquiring information on events occurring outside the organization -identify opportunities and threats that impact marketing strategies

Question 49

Competitive Forces: Competitor Types

Answer 49

Direct Competitors -Similar products sold in the same category E.g., coca cola vs. pepsi -Innovation and branding Indirect Competitors -Products that satisfy similar needs -Coca cola vs. other beverages Product line expansion

Question 50

Competitive Forces: Nature of Competition

Answer 50

-monopoly -oligopoly -monopolistic competition -pure competition

Question 51

Monopoly

Answer 51

-One organization serves the entire market -No viable substitutes available -Government regulations typically in place to ensure fair treatment of customers Example: Hydro One

Question 52

Oligopoly

Answer 52

-Few large organizations control the market -New organizations struggle to enter market “Follow the teacher” mentality Example: computer operating systems - windows, IOS apple

Question 53

Monopolistic Competition

Answer 53

-Numerous large and small organizations with similar products -Substitute products always available -Entry into market it easier -Emphasis placed on product differentiation Example: Cereal Brand Industry

Question 54

Pure Competition

Answer 54

-Numerous small sellers providing a nearly identical product -Output of a single seller is only a small portion of the total output of a product -Entry into market is easier Example: agricultural product. People don't care where they get their corn from. Each farm only produces a small amount of corn of what's available in global market. No farm holds a significant amount of influence over price; instead most market prices are set for each product; if price is not met, the product likely won't sell

Question 55

Gross income

Answer 55

Income before taxes are deducted

Question 56

Disposable income

Answer 56

Income remaining after tax deductions (food, shelter, clothing)

Question 57

Discretionary income

Answer 57

Income remaining after tax deductions and after paying for necessities (jewelry, designer goods, vacation, savings accounts)

Question 58

Economic Forces: Income

Answer 58

-Income dictates how much someone will spend -Customer spending is impacted by economic changes -Economic downturn associated with prioritized of basic necessities -Economic boom associated with increased demand for non-essential products

Question 59

Demographic Forces

Answer 59

-characteristics of a population (e.g., gender, ethnically, geography) -aging -urbanized -diverse

Question 60

Green Marketing

Answer 60

-Highlighting the environmental benefits of products or services -Sustainable packaging, etc. -Highlighting the environmental awareness -Causes they are helping

Question 61

Green Washing

Answer 61

- Misleading claim made about the environmental benefits of a product or brand -Unethical marketing -Saying it is 'natural', which doesn't mean it benefits the environment -Example: Volkswagen diesel scandal

Question 62

Consumer Behaviour: What Is It?

Answer 62

-actions a consumer takes when buying and using products -emerged as field of study in 1950s

Question 63

Purchase Activities

Answer 63

-how consumers acquire products (i.e., purchase decision process) -factors that affect purchasing when, where, how, why people use products (psychological, social, personal, situational)

Question 64

Consumption Activities

Answer 64

-when, where, how, why people use products (can be symbolic) -owning luxury clothes

Question 65

Purchase Decision Process

Answer 65

-provides insight into the manner in which customers interact with marketing materials when they acquire and use products this in turn can inform the development and revision of marketing strategies -series of steps that a consumer will take to make a purchasing decision includes: -Problem recognition -Information search -Evaluation of alternatives -Purchase decision -Post-purchase evaluation

Question 66

Problem Recognition

Answer 66

-sufficiently large disconnect between actual state and ideal state -Identify need, actual state declines, act to reach ideal state -Need: a state of felt deprivation -Identify opportunity, ideal state moves up, act to reach ideal state -Opportunity: desirable circumstance that can improve our current state

Question 67

Information Search

Answer 67

-find information about what products may address the problem -Internal: effective when prior knowledge exists memory, past experiences External: no limited prior knowledge likely personal sources (friend, coworker etc), public sources (YouTube reviews), market-dominated sources (actual sellers/brands)

Question 68

Evaluation of Alternatives

Answer 68

-Evaluate and compare all products on attributes that have the ability to deliver the benefit that they are seeking Awareness set: Evoked set (consideration set) = positive impression Inert set = no impression Inept set = negative impression

Question 70

Post-Purchase Evaluation

Answer 70

-Compare product to expectations to assess satisfaction -Impacts future behaviours: -Whether product will be purchased again -Whether additional products from the brand will be purchased -Whether the product or brand will be recommended

Question 71

Cognitive dissonance theory (Leon Festinger)

Answer 71

-State of simultaneously holding conflicting beliefs -Results in tension or anxiety -Is uncomfortable and people are motivated to reduce it -Change beliefs, rationalize existence of the two conflicting beliefs For example: You smoke cigarettes, but at the same time you are aware of the effects it has on your health/well-being. Beliefs clash with behaviours stressful and uncomfortable. Motivated to take action, which according to cognitive dissonance can take place in 3 ways: -Stop smoking -Deny health impact of smoking -Rationalize why smoking makes sense -Post-purchase cognitive dissonance may occur -Purchase of one product contrasted against positive aspects of other products -Tension from comparisons can be reduced by follow-up from seller

Question 72

Involvement in the Purchase Decision Process

Answer 72

-Effort, energy, time differs based on consumer involvement -Consumer involvement: interest and importance that a consumer attaches to the purchase and consumption of a product -High involvement if: Expensive Bought infrequently Impact social image (i.e., public persona)

Question 73

Consumer Behaviour and Choice

Answer 73

-Brands, models, features -Previous theories proposed that desire for choice is infinite Example: Purchasing an SUV o Choose from Chevrolet, Jeep, Toyota, Honda o If they want Jeep: Wrangler, Cherokee, Compass, Renegade o Then they choose colour and details

Question 74

Choice Overload Hypothesis: What is it?

Answer 74

-a.k.a. the paradox of choice -suggests that extensive choice can be paralyzing and demotivating because it is cognitively taxing basically too much for your brain -Iyengar & Lepper (2000) conducted series of studies to investigate

Question 75

Choice Overload Hypothesis: Evidence Iyengar & Lepper (2000)- Study 1, Jams

Answer 75

Two booths set up. One booth had limited choices and the other had extensive choices · Customers with extensive choice: o Were more attracted to the booth o Were equally likely to sample jams o Were less likely to purchase

Question 76

Choice Overload Hypothesis: Evidence Iyengar & Lepper (2000)- Study 2, Essay Topics

Answer 76

-Some students were given limited choices, while others were given extensive choices of essay topics to choose 1 from -Students with extensive choices: o Were less likely to turn in the assignment o Received lower grades on their assignments (lower quality)

Question 77

Choice Overload Hypothesis: Evaluation

Answer 77

-Choice overload is not impactful when: -Decision-making self-efficacy is high -A clear prior preference exists -One is experiencing positive affect -Meta-analysis that tested hypothesis found little supporting evidence

Question 78

Lyengar & Lepper (2000)- Study 3, Chocolates

Answer 78

-Participants were divided into groups; one group had limited choices of chocolates while the other had extensive; -Participants asked to choose 1 chocolate from their group to consume -Participants with extensive choice: o Spent more time deciding o Enjoyed decision-making process o Found decision-making process to be difficult and frustrating o Were less satisfied with their chosen chocolate

Question 79

Situational Influences

Answer 79

-Factors pertaining to considerations, time, and location that impact the purchase decision process o Physical surroundings o Social surroundings o Temporal effects o Antecedent states o Purchase task

Question 80

Physical surroundings

Answer 80

-Physical characteristics of retail space -Atmospherics controllable factors that set ambience and create a sensory experience -Layout: design of floor space (baked goods versus dairy) Example: dimmed lighting - when people eat in dimmed lighting they are more likely to eat more food/buy more food/ spend more money, more satisfied with the experience.

Question 81

Social surroundings

Answer 81

-interactions with others -social shopping versus solitary shopping (purchases made, spending) -role of others in our lives (impulsive buying with friends)

Question 82

Temporal Effects

Answer 82

-time of day (more variety as day progresses) -time of year -amount of time available (opt for repeat purchase, lowest price, most recognizable)

Question 83

Antecedent State

Answer 83

-momentary conditions: emotional state (familiarity vs novelty) energy level (self regulation vs impulsive buying), cash on hand

Question 84

Purchase Task

Answer 84

-goal of shopping trip -casual shoppers versus goal-directed shoppers -"embarrassing items" (tampons, condoms etc) = more items purchased

Question 85

Sensory Marketing: What is it?

Answer 85

-marketing that engages the senses -appeals to sight, sound, taste, touch, smell -evokes memories and emotions -creates emotional connection to product/brand

Question 86

Sensory Marketing: Congruence

Answer 86

-sensory marketing is most effective when it is congruent -congruence: alignment between a retail environment and the sensory experience alignment between a product's primary function and the sensory experience

Question 87

Sensory Marketing: Sound (music)

Answer 87

genre: category of music, directed at target market to attract customers, can affect spending volume: loudness of music, high volume increases stress response, low volume can be unwelcome tempo: speed of beat, longer browsing at slower tempos, can help control customer traffic

Question 88

Sensory Marketing: Smell

Answer 88

-Ambient scents capable of: Attracting customers Increasing browsing time Increasing product interaction Increasing spending Elevate mood, lower anxiety

Question 89

Odor Preference

Answer 89

Innate View: we are born with a predisposition to like or dislike specific doors Learned View: door is initially meaningless, door takes on meaning through our experiences, associative learning