topics 3-4

Question 1

Purchase Frequency is used as a measure of _______ _______

Answer 1

Purchase frequency is used as a measure of [repeat buying]

Question 2

NBD-Dirichlet Model is used for examining _______ probabilities within _______ category and _______ periods

Answer 2

Examining [purchase] probabilities within [product] category and [time] periods

Question 3

Category Buying Rate is a measure of how ______ customers are to your brand

Answer 3

Category Buying Rate is a measure of how [loyal] customers are to your brand

Question 4

Laws of the NBD Model:
1. _____ _____ matter
2. 80:20 rule – 20% of customers are _______ _______ accounting for 50% of sales, 80% are _______ _______.
3. Less than 100% _______ _______ is _______
4. _______ _______’s matter

Answer 4

Laws of the NBD Model:
1. [Light buyers] matter
2. 80:20 rule – 20% of customers are [heavy buyers] accounting for 50% of sales, 80% are [light buyers]
3. Less than 100% [repeat buying] is [normal]
4. [Non-customers] matter

Question 5

The stages of perception:
1. E_______
2. A_______
3. I_______

Answer 5

The stages of perception:
1. Exposure
2. Attention
3. Interpretation

Question 6

Exposure is when _______ comes within range of a person’s _______ _______

Answer 6

Exposure is when [stimulus] comes within range of a person’s [sensory receptors]

Question 7

absolute threshold is the _______ amount of _______ that can be detected on a given _______ channel

Answer 7

absolute threshold is the [minimum] amount of [stimulation] that can be detected on a given [sensory] channel

Question 8

differential threshold is the ability of a _______ system to detect _______ or _______ between two _______

Answer 8

differential threshold is the ability of a [sensory] system to detect [changes] or [differences] between two [stimuli]

Question 9

Weber’s Law states that the _______ increase of stimulus which will produce a _______ _______ of sensation is _______ to the pre-existing _______

Answer 9

Weber’s Law states that the [minimum] increase of stimulus which will produce a [perceptible increase] of sensation is [proportional] to the pre-existing [stimulus]

Question 10

The smallest perceivable change (according to weber) is:

Answer 10

2%

Question 11

Attention is the extent of _______ _______ that is devoted to a particular _______

Answer 11

Attention is the extent of [processing activity] that is devoted to a particular [stimulus]

Question 12

Examples of stimulus selection factors (4)

Answer 12

1. size
2. colour
3. position
4. novelty

Question 13

Stimulus selection factors are _______ characteristics of the stimulus itself

Answer 13

Stimulus selection factors are [physical] characteristics of the stimulus itself

Question 14

what factors help us decide what to pay attention to? (2)

Answer 14

1. Perceptual Selection Factors
2. Stimulus Selection Factors

Question 15

Interpretation is the _______ we assign to _______ _______

Answer 15

Interpretation is the [meaning] we assign to [sensory stimuli]

Question 16

The Closure Principle - people will ____ ____ ____ to perceive a complete object when an external stimulus _______ matches that object

Answer 16

The Closure Principle - people will [fill in blanks] to perceive a complete object when an external stimulus [partially] matches that object

Question 17

The Principle of Similarity - when items _______ some _______ _______ , they are assumed to be _______ in some way

Answer 17

The Principle of Similarity - when items [share] some [visual characteristics], they are assumed to be [related] in some way

Question 18

The Figure-Ground Principle - when one part of the stimulus _______ (_______ ) & the other part _______ into the background (_______ )

Answer 18

The Figure-Ground Principle - when one part of the stimulus [dominates] (figure) & the other part [recedes] into the background (ground)

Question 19

Using semiotic theory, what does every marketing message have? (3)

Answer 19

1. object
2. interpretant
3. sign

Question 20

The NBD portion of the NBD-Dirichlet Model is made of the _______ and _______ Distribution

Answer 20

The NBD portion of the NBD-Dirichlet Model is made of the [Gamma] and [Poisson] Distribution

Question 21

The Dirichlet portion of the NBD-Dirichlet Model is made of the _______ Distribution and the _______ Distribution

Answer 21

The Dirichlet portion of the NBD-Dirichlet Model is made of the [Multinomial] Distribution and the [Multivariate] Distribution

Question 22

Key aspects captured by the NBD-D Model:

• People buy _______ (Gamma)
• People buy _______ (Poisson)
• People buy from _______ _______ (Multinomial)
• The _______ of people’s behaviour (Multivariate Distribution)

Answer 22

Key aspects captured by the NBD-D Model:

• People buy [infrequently] (Gamma)
• People buy [randomly] (Poisson)
• People buy from [multiple brands] (Multinomial)
• The [variation] of people’s behaviour (Multivariate Distribution)

Question 23

Stationarity occurs when customers are _______ . However, any customer _______ are typically matched by _______

Answer 23

Stationarity occurs when customers are [habitual]. However, any customer [defections] are typically matched by [acquisitions]