Strayer University, Washington ACC 557 Quantitative Methods Final Exam

Final Exam 1. Professor Kahn demonstrated the use of a Value Map. According to the Fair Value framework and to the lecture, what should companies try to do? Offer better than fair value on all three bundles. Offer fa ...

Final Exam 1. Professor Kahn demonstrated the use of a Value Map. According to the Fair Value framework and to the lecture, what should companies try to do? Offer better than fair value on all three bundles. Offer fair value on all three bundles. Offer fair value on two bundles and offer better than fair value on the other bundle. 2. In the STP framework, what does "STP" stand for? Sizing; tabulating; positioning Segmentation; targeting; pricing Sizing; targeting; pricing Segmentation; targeting; positioning 3. The Gillette Sensitive portfolio (pictured below) "combines outstanding shaving performance and comfort to address the significant unmet need of 70% of men who say they have sensitive skin." What is the point of difference in this positioning statement? Outstanding shaving performance and comfort Other razors Men with sensitive skin4. In Nike's brand mantra "Authentic Athletic Performance," which of the three words is the emotional modifier? Athletic Authentic Performance 5. Disney, started by brothers Roy and Walt Disney, is one of the world's most famous mass media corporations. What type of name is Disney? Blended Invented Surname Metaphor 6. In Professor Kahn's lectures, she discussed the two axes of color. What were the two axes? Familiarity & Excitement Brightness & Warmth Arousal & Affect 7. Which color is most preferred by men and is known to curb appetite? Black White BlueGreen 8. A lot of designer clothing companies will send free clothes to celebrities with hopes that the celebrities will wear their clothing in public and attract more customers to the brand. What mode of endorsement are these clothing companies trying to achieve? Co-present mode Imperative mode Implicit mode Explicit mode 9. The image below, which displays Nivea's packaging since 1963, is an example of the ____________, which is when companies use tiny little tweaks to make sure their packaging and brand stay modern. Consumer packaged goods modernization theory Butterfly effect Just-noticeable difference 10. Due to massive customer heterogeneity, Professor Fader would say there’s more opportunity to “move the needle” via ___________ than ___________.Acquisition; development Retention; acquisition Retention; development Development; acquisition 11. Tesco and Harrahs rose to prominence in their industries by exploiting which “crack in product centricity”? Commoditization Customer-level tracking Innovation Globalization 12. In a customer-centric approach, which customers should you be most concerned with? The customers that have historically been most valuable The customers with the greatest degree of social influence The customers that are likely to be most valuable The customers who are most engaged with your products/services 13. When Joe was working in finance, he bought all of his suits at Macy’s, a department store. Once Macy’s finds out about Joe’s plans to return to business school, what customer-centric approach would Professor Fader recommend that Macy’s takes with Joe?Give him incentives to refer his friends to Macy’s Send a thank-you note to Joe to thank him for shopping at Macy’s for so many years Show Joe that he’s still important to them by extending a store discount to him that will apply during his time as a student Invite Joe into a VIP customer loyalty program once he graduates from school 14. Customer centricity requires zooming in on your important customers. As you do so, which of the following strategies do you want to focus on? Try to turn all of the less valuable customers into highly valuable ones Drop the least valuable customers, so you can focus your resources on your most valuable customers Keep the less valuable customers because they provide stability and robustness to your customer mix Try to treat all of your customers equally well 15. Sometimes at the hair salon, the receptionist will ask if you also want to get a manicure while you’re there. What is this an example of? Up-selling Cross-selling Customer referral program Customer needs assessment16. In a product-centric company, rewards would be measured on metrics like all of the following EXCEPT: Percentage of revenue from products less than two years old Market share Number of new products Share of wallet 17. In a customer-centric company, sales bias is on the side of the ____________ in a transaction. Seller Broker Buyer Ultimate consumer 18. The thought process for a ________-centric company is “How many possible uses of this product?” The thought process for a ________-centric company is “What combination of products is best for this customer?” Product; customer Customer; product Product; product Customer; customer19. Jack recommends his new Keurig coffee machine to his friend Jill. Jill buys her own Keurig and loves it - studies show that she is now significantly more likely to recommend the Keurig coffee machine to another person. What is this effect called? Selection effect Treatment effect Marketing effect Referral effect 20. Choose the best answer. Claire just heard that her friend Jack lost his job. In order to help with his search for a new job, she suggests that he sign up for LinkedIn, a social networking website for people in professional occupations. Jack signs up, finds LinkedIn to be very helpful, and ends up becoming an active user for the next ten years. This is an example of the: Treatment effect Referral effect Selection effect Marketing effect 21. Which adage best sums up the concept of “homophily?” The early birds gets the worm Birds of a feather flock together Opposites attractYou can't teach an old dog new tricks 22. Six degrees of separation is the idea that everyone is six or fewer steps away from any other person in the world. In terms of influence, however, the influence you have over other people will generally not exceed _____ steps. 3 4 6 2 23. In one of the studies that Professor Bell discusses, he looks at the influence different "friends" have on a user in a certain social network. Which of these effects is a result of "homophily?" Girls were influential over guys, whereas the same was not true for guys over girls People who indicate they're looking to date people have less influence over other users On average, someone who has been in a social network for a longer period of time has a greater influence on other users People who are from the same ethnic/culture background, on average, have more influence over each other 24. Which of the following is a non-digital attribute? The fit of a pair of shoes PriceDelivery time Length of a book 25. According to Professor’s Bell lecture, changing which of the following had the greatest impact on operating profits? Variable costs Volume Fixed costs Price 26. Which of the following best represents the idea of price elasticity? If I raise volumes by 10%, by how much does the price adjust? If I drop volumes by 10%, by how much does the price adjust? If I drop the price by 1%, by how much does demand drop? If I raise the price by 1%, by how much does demand drop? 27. Which of the following is NOT one of the four inputs to the pricing process? Marginal cost Competitive pressuresDistributor margins Marginal revenue Willingness to pay 28. Which of the following is not one of the 7Ms? Mission Message design Media strategy Money Message content Motivation Measurement Market 29. Toys "R" Us is the name of a major retailer that sells toys and other kids products. What type of name is Toys "R" Us? Metaphor InventedArbitrary Descriptive Altered Blended Surname 30. Under the Elaboration Likelihood Model, a firm should only use central routing in their marketing messaging if customers have: The motivation to elaborate and the ability to elaborate. The motivation to elaborate but NO ability to elaborate. Incorrect option NO motivation to elaborate and NO ability to elaborate. The ability to elaborate but NO motivation to elaborate. 31. The tagline for Disneyland is "The Happiest Place on Earth." What type of tagline is this? Provocative Descriptive Clever ImperativeSuperlative 32. In relation to the Elaboration Likelihood Model, Professor Kahn discussed the peripheral cues that people use to accept or reject messages. Which of the following is NOT one of the peripheral cues that she mentioned? Logic Consistency Classic conditioning Reciprocity Authority Liking Social Proof Scarcity 33. If a company has used a celebrity endorsement in an "imperative mode," what message is the celebrity conveying? "I endorse this product." "Everyone uses this product." "You should use this product.""I use this product." 34. In her lecture, Professor Kahn discussed how difficult it was for Oldsmobile to reposition its automobiles among younger consumers. Perhaps they could have tried to evolve the Oldsmobile brand more gradually. All of the following are ways to evolve brands more gradually except for: Symbols: updating symbols can provide updates without changing meanings.. Announcements: explaining to your customers that the brand will now be focusing on a different customer segment. Update the brand name to reflect evolving identities. New products, which can be true to the core identity but add modern, innovative elements. Slogans, which are easier to change than names. 35. Professor Fader introduced us to the concept of CLV - customer lifetime value. Professor Bell continued the discussion of CLV and explained that in the digital environment, CLV needs to also incorporate RLV. What is RLV? Retail lifetime value Recent lifetime value Relative lifetime value Referral lifetime value 36. What are customer-centric companies required to do? Be willing and able to change their performance metrics and incentive structures to focus on creating long-run customer value. Changing organizational design is not necessary.No significant organizational changes are necessary: they just have to adopt a customer-centric approach. Be willing and able to change their organizational design, performance metrics and incentive structures to focus on creating long-run customer value Be willing and able to change their organizational design and performance metrics to focus on creating long-run customer value. Changing incentive structures is not necessary. 37. Even though we are spending more time than ever shopping on the internet, what percentage of goods sold to customers are sold offline? 50% 90% 70% 35% 38. What best explains the concept of "preference isolation"? Because you have preferences and tastes that are different from the other people in your neighborhood, local OFFLINE businesses AREN'T motivated to give you what you want. Because you have preferences and tastes that are different from the other people in your neighborhood, local OFFLINE businesses ARE motivated to give you what you want. Because you have preferences and tastes that are different from the other people in your neighborhood, ONLINE businesses AREN'T motivated to give you what you want and will pursue you as a customer. 39. Understanding the process of perception is critical to understanding branding because:No answers are correct Perceptions affect subsequent behavior The proximity bias means that people assume that things that are close to each other must belong together All answers are correct Brand names change people's perceptions of products regardless of the quality of the product Similarity bias means people assume that things that look alike must have the same quality 40. Which of the following factors does NOT reduce price sensitivity? Separation between the buyer and the payer When the user cannot differentiate between differences in quality Ease of comparison Separation in time between the point of purchase and the time of payment