Test 1

Question 1

What idea focuses on the idea of learning through Repetition?

Answer 1

Classical Conditioning

Question 2

What can be inferred from the fact that penetration does not often equal 100% for a product category?

Answer 2

Shoppers exhibit divided loyalty

Question 3

What combination represents good empirical generalisation?

Answer 3

• Scope
• Precision
• Parsimony
• Usefulness
• Link with a theory

Question 4

Share of Category Requirement (SCR) is a brand performance metric which measures…

Answer 4

The proportion of your buyers total category purchases devoted to your brand

Question 5

What is the correct proportion of customer concentration (light v heavy buyers) and the contribution to brand sales

Answer 5

80% light buyers: 20% heavy buyers = 50 % sales : 50% sales

Question 6

Describe one brand size metric and one brand loyalty metric

Answer 6

Brand Size: Penetration. The market share is how many sales of the relate to the amount of sales of the whole category

Brand Loyalty: A brand loyalty metric is the category buyers rate. This simply means how often from a particular category are a brand consumers purchasing from the category on average.

Question 7

Why is average purchase frequency higher while 100% loyalty and share of market are lower in repertoire markets than in subscription markets.

Answer 7

• Repertorie market occurs when buyers purchase multiple brands of the same category of products, such as brand of tissues every time you go shopping-
• A subscription market occurs when a consumer will buy exclusively from brands for an extended period of time, such as purchasing an insurance policy.
• Average purchase frequency is so much higher in a subscription market because there is more customer loyalty in regards to the market share.

Question 8

What is the cognitive model of consumers decision making process- what are two problems associated with the model.

Answer 8

• The cognitive model outlines the effect that different situations/variables can have on a consumer decisions.
• Problem 1: In our society what people value and recognise is forever changing as such the way we recognise products and order those products could change very slightly, making it difficult to apply this model
• Problem 2: Assumes rationality. Decision rests on beliefs about alternatives which are investigated and compared

Question 9

Rules for data reduction

Answer 9

• Main patterns should be shown in columns
• Round to two digits in your results column
• Explain what is occurring with a brief summary ( story in a sentence)
• Order brands by size (Biggest to Smallest)
• Add averages as a focus

Question 10

What is gamma distribution?

Answer 10

The gamma distribution aims to show consumers are likely to buy a category of a product infrequently. It describes the rate of purchase frequency at the category level.