Test #2 Flashcards
What is the Marketing Myopia?
Being shortsighted- focusing more on products and less on the customer - IE trains not transportation industry
What is the NEW Marketing Myopia?
Not focusing on shareholders or the consequences of actions IE McDonald’s offering supersizing but not caring about public health outcomes
Subculture of Consumption - who are they?
People that share these three things: Certain Structure, Ethos and Transformation of self (SET)
What does SET stand for?
Structure, Ethos and Transformation of self
What are the four types of data that we studied?
N - nominal, O - Ordinal, I - Interval, R - Ratio
What is nominal data?
Categorical factors, non-metric - gender, etc
What is ordinal data?
Categorical factors, non-metric but can be arranged in a certain order (freshman, sophomore, or ranges of how often you consume coffee outside of home)
What is interval data?
higher level of data, more definition, metric - equal interval between (strongly disagree vs strongly agree - 7 scale or any range, can calculate means (temp) - doesn’t have a true zero
What is ratio data?
higher level of data, more definition, metric (pounds with ounces as weight, age as 24.75)
has a true zero
What data is categorical?
Nominal and ordinal
What data can you use x2 (kai squared) for?
Categorical (nominal and ordinal)
What is a x^2 test of independence for?
To test two factors and see if they are related or not
What does “P value” stand for?
Probability of error
What if the asymptotic significance is under 0.01?
Then we are 99.99 certain there is a correlation
What is anchoring?
Customers getting stuck on a certain price and remembering that
What is representative heuristics?
Whatever is most represented is used as a shortcut to make a quick judgement - IE vegan into herbs and essential oils - are they more likely to be a holistic healer or a school teacher? Natural to say healer, but statistically more likely to be a school teacher.
What is the prospect theory?
Losses Loom Larger - no one wants to lose money so they will make irrational decision to avoid.
Reference groups
Want to be like them or DONT want to be like them
Perceptions
Moving from short term to long term memories
Conjunctive heuristic
Things right next to each other - TVs at Best Buy
Types of lexicographic heuristics
Satisficing - good enough
Compensatory - one thing can make up for another
Lexicographic - what is the peak best thing?
Conjunctive rule - what is minimum i want and what fits with that?
Disjunctive - dissing certain attributes
Elimination - by aspects - look at most important characteristics first and eliminate accordingly
Satisficing
good enough choice
Compensatory
one thing can make up for another
Lexicographic
what is the peak best thing?
Conjunctive rule
what is minimum i want and what fits with that?
Disjunctive
dissing certain attributes
Elimination - by aspects -
look at most important characteristics first and eliminate accordingly
Rule for memory exercises
7 plus or minus 2 (don’t go over 9 pieces of information)
Primacy vs recency effect
things recalled from beginning vs end
Straight rebuy
no thought involved, easy and just do the basic that you always have done
Modified rebuy
rugs in a hotel or computers for a lab - maybe some companies will make bids and medium cost involvement
New task
lots more bids and incentives involved, lots of involvement, for the campus it might be for a new glassblowing studio or new arts building
What types of rebuys are there?
Straight rebuy, modified rebuy, new task
BUYING CENTER
includes initiators, users, influencers, deciders, approvers, buyers, gatekeepers (administrative people can open or close the flow of information)
Vampire Effect
Overshadowing and negatively affects the brand – celeb endorsements so distracting that people forget the brand
If Kai squared is high, p-value is what?
Low - inverse relationship
What do T-tests test?
Two means
Segmentation
Bundling people into smaller or larger groups to target (running shoe companies)
Segment clustering
Different people care about different things (people and their hotel choices)
Undifferentiated targeting strategy
New Balance pretty much treats everyone the same and doesn’t change it up based on what different segments there are
Concentrated targeting strategy
going after one specific group that is the same
Multi-segment targeting strategy
Splitting up and going after multiple groups with different strategies for each
Direct investment
going somewhere and starting a whole factory and starting somewhere new
Global strategy
strategy doesnt change no matter where you go - Coca Cola
Multi-domestic strategy
Different tactics for different areas (Nescafe for instant coffee in different regions of Asia)
Bottom of the pyramid idea
3 billion people living on $2.50 a day
