Test 1: Toms readings

Question 1

What is inertia?

Answer 1

Opting in(Making the decision to get something) vs. Opting out (Subscription)

Question 2

Explain the endowment effect

Answer 2

Ownership of something adds value to the product (Example with the mug at a yard sale)

Question 3

Explain decoy pricing

Answer 3

Presenting a more expensive option to sell another lower cost option (Painting example). This can also work the other way around.

Question 4

Explain the purpose framing in marketing

Answer 4

Loss vs. Gain (Free is beter example: Hersheys)

Question 5

Explain how the evolution of demand and supply

Answer 5

Over time the market went from being controlled by supply, because demand was greater then the supply. Today supply is greater than demand, therefore the focus now lies on the demand side.

Question 6

Explain the evolution of marketing

Answer 6

Marketing has gone from focusing on the product to focus more on the consumer of the product, therefore marketing has become more personal and individual

(Coffee example adding value with experience instead of product)