Spørgsmål

Question 1

Def. of Market Share?

Answer 1

The proportion of sales obtained by a brand in comparison to the whole category.

Question 2

Def. of Penetration?

Answer 2

The proportion of people that bought your brand at least once in the given time period.

Question 3

Def. of Average Purchase Frequency (APF)?

Answer 3

The number of times, on average, your buyers have bought the brand.

Question 4

Def. of Category Buying Rate (CBR)?

Answer 4

The number of times, on average, your buyers have bought from the category.

Question 5

Def. of Share of Category Requirement (SCR)?

Answer 5

The proportion of the overall category purchases done by your buyers that has been ‘devoted’ to your brand.

Question 6

Def. of Sole Loyalty?

Answer 6

The proportion of brand buyers who only bought your brand in the given time period.

Question 7

Positive reinforcement?

Answer 7

Using a positive stimulus to encourage the same behaviour again.
e.g. loyalty programs

Question 8

Negative reinforcement?

Answer 8

Encourages a behaviour by a negative reinforcer (or stimulus).
e.g. parking ticket

Question 9

Operant conditioning?

Answer 9

Learning through trial and error.

e. g. 2 for 1 items promotion (positive)
e. g. Being charged 15cents for a plastic bag (negative)

Question 10

Classical conditioning?

Answer 10

Learning through repetition.

e.g. Celebrity endorsement of a brand.

Question 11

Which 5 element represents a good empirical generalisation?

Answer 11

Scope, Precision, Parsimony, Usefulness, Link with theory

Question 12

Which important aspects of buying behaviour does the NBD-Dirichlet model describe?

Answer 12

How often people buy and which brands people buy.

Question 13

Double Jeopardy?

Answer 13

Small brands suffer twice
Smaller brands (lower market share) have fewer buyers (lower penetration), and are bought less often (lower APF).

Question 14

Natural monopoly effect?

Answer 14

Big brands attract more lighter category users.
Penetration = høj til lav.
APF = høj til lav.
CBR = lav til høj.

Question 15

Duplication of Purchase Law?

Answer 15

Brands share customers!

A brand share more customers with larger brands, and less customers with smaller brands.

Question 16

Partitioning?

Answer 16

Brands share more or less customers with one another than expected to for their size.

Question 17

3 areas of storage? (memory)?

Answer 17

1. Sensory
2. Short term
3. Long term

Question 18

3 processes (memory)?

Answer 18

1. Encoding = putting information into storage.
2. Maintenance = Keep information in memory
3. Retrieval = Recollect information that is already used or known in your memory (cue based).

Question 19

Brand Salience?

Answer 19

The probability of the brand to be thought of in buying situations
–> Predict future behaviour (more important than attitude).

Question 20

3 important factors in measuring Brand Salience?

Answer 20

1. It should contain a range of attributes (cues used to think of brands).
2. It should measure recall relative to competitors.
3. It should focus on retrieval rather than evaluations of a brand.

Question 21

Attitude?

Answer 21

Change over time
Influence bahaviour
Reflect past behaviour

Question 22

Attitude Measures?

Answer 22

• Attributes (e.g. taste nice, good value)
• Satisfaction level
• Loyalty

Question 23

Pattern within attitude?

Answer 23

• Bigger brands gain higher scores -> more users
• Recent users are more likely to express an attitude towards a brand.
• We act first and then we think -> Behaviour drives attitudes.

Question 24

Main task of marketing?

Answer 24

Make brand salient -> Top-of-mind -> Mass marketing (penetration).
Be mental and physical available.

Question 25

3 Types of segmentation?

Answer 25

- Market/Category segmentation - Stock-keeping-unit (SKU) -> Functional differences - Brand-User segmentation

Question 26

Expect for a growing brand?

Answer 26

Increased acquisition & Normal level of defection

Question 27

Measure satisfaction in 2 ways?

Answer 27

- Objective measures = Evaluate service quality (mystery shoppers) (most appropiate, realistic) - Subjective measures = Evaluate satisfaction scores by doing surveys

Question 28

How do satisfaction scores vary?

Answer 28

- Between industries -> vary a little (6.0-8.6) | - Between brands -> not much at all

Question 29

How do collection methods affect satisfaction scores?

Answer 29

- Face-to-face tends to score more positive - Phone surveys slightly less - Mail/internet give lowest result

Question 30

WOM?

Answer 30

Person-to-person communication | -> Giver and receiver

Question 31

List the four mental availability metrics

Answer 31

- Mental Market Share - Associative Penetration - Associative Network Size - Share of Mind

Question 32

Two implications of DoP

Answer 32

- If DoP holds, there will also be Double Jeopardy | - Brands competes "heads-on"

Question 33

Explain cognitive theories and behaviorist theories?

Answer 33

Cognitive theories focus on WHY | Behaviorist theories focus on WHAT and HOW OFTEN we buy stuff.

Question 34

List the 3 forms of loyalty?

Answer 34

``` Attitudinal = attitude towards a brand Share = Same as SCR Tenure = The length of time a person can be considered a buyer of a brand. ```

Question 35

List and describe four empirical laws of shopping?

Answer 35

- Mental and physical availability - Limited time - Many short trips - Purchase goals

Question 36

Key implications of the research by Kennedy & Ehrenberg?

Answer 36

- There is no segmentation on brand-user level. - Therefore you have to target all customers in the category. - This is done by mass marketing - Important to make your brand mental and physical available.

Question 37

List 2 internal and 2 external triggers to explain why someone would give you a WOM recommendation?

Answer 37

Internal: - Personal interest - Altruism External: - Advertising - To stimulate discussion