1.

Which of the following are included in the 7 M’s of developing a Communication

Plan? (Select all that apply):

 Money: How much do we need to spend?

 Message Content/Design: What should we tell them and how?
 Markets: Who should we talk to?
 Mass: How large should the plan be?
 Media Strategy: How do we reach them?

2. Which of the following is NOT an example of Mass and Targeted Media strategy?

 Outbound Advertising
 Print Media
 Public Relations
 Product Placement
 Online Word of Mouth

3. Which of the following is NOT a true statement about the Key Principles of Media
Planning?

 The campaign must win awards in order to succeed

 The campaign mentions the brand name
 The campaign can show the product in use
 The campaign should state the positives of the product/service
 The campaign must avoid unpleasant connections with your product

4. 1% improvement in ______ would create the biggest improvement of operating profit

for a company.

 Price
 Variable Cost
 Sales Volume
 Fixed Cost

5. Price Sensitivity is affected by… (Select all that apply):

 Indirect Comparisons
 Availability and awareness of substitutes
 Price/Quality Inferences
 Switching Cost
 Private Costs

6. Which of the following statement is true about measuring price elasticity?

  When actual purchase is measured under controlled conditions, you are
measuring Sales Data
 Surveys measures the variable of actual purchases in an experimental
environment
 For field/laboratory experiments, one only needs to measure preferences and
intentions
 A carefully designed choice set in a Trade-Off Analysis can allow us to measure
how a consumer trades off one variable against another
 One of the strengths of a Survey is that people are honest about their intentions
on what they will do

7. According to the Weber Fechner Law, consumers react to prices in _____ as opposed
to _____.

 Euros / Dollars
 Decimal Points of .99 / .00
 Terms of Emotion / Rationality
 Percentage Terms / Absolutes (happy drive 5 miles to save $5 on a product
costing $10 rather than $1000)
 Dollars / Euros

8. True or False: Businesses often spend significantly more money on creating customer
access for their products/service than they spend on advertising

 True
 False

9. For the iPhone, which of the following are considered digital attributes of the
product? (Select all that apply)

 Price
 Efficiency of using the appes on the phone
 Colors
 Feel of the touchscreen technology
 Size differences between iPhone models

10. _____ is when the consumers shop offline to get a feel for the product and then
buys the product online at a cheaper price.

 Retail Dating
 Webrooming
 Comparison Shopping
 Showrooming
07/03/2024 – WEEK 4
LESSON 1: BRAND MESSAGING & COMMUNICATION
Perception: the process of developing an interpretation of a stimulus, or in other words,
deciding what a stimulus means
 The MOST CRUCIAL process in CUSTOMER BEHAVIOR
• What customers perceive is what affects their actions
• What is perceived is NOT NECESSARILY what is “TRUE”
Process of perception: perception is CONSTRUCTIVE and comes into 2 stages
• The “actual” stimulus or event: Exposure and Attention (what is salient)
• Our prior expectations and what we know (perceptual interpretation)

LESSON 2: BRAND ELEMENTS: CHOOSING A BRAND NAME

Brand elements: inherently enhance brand awareness or facilitate the formation of
strong, favorable, and unique brand associations
• How well do the brand elements work together to provide an identity for the
product/service?
• What would customers think about the product if they only saw the brand
elements?
 Advantages Disadvantages
Names The anchor Difficult to change
Quick, easy to process and recall Globalization issues
Logos and symbols Attention-getting Can get outdated
Can reinforce associations Can be ambiguous/
Global transfer misinterpreted
Characters Rich meaning Can ger outdated
Attention-getting Global transfer
Slogans and jingles Can be highly memorable Difficult to translate
Catchy Music taste differences
Convey meaning
Packages Recognition Production issues
Convey info and meaning Channel concerns

Brand element choice

• Each brand element plays a different role in creating the overall perception
• Brand elements should be used strategically to achieve a balance and impact
• Need consistency and integration

Choice criteria
• Memorable: easily recognized & recalled
• Meaningful: descriptive & persuasive
• Appealing: fun & interesting, asthetically, rich visual & verbal imagery
• Protectable: legally & competitively
• Adaptable: flexible & updateable
• Transferable: within and across product categories, across geographical
boundaries and cultures
Effect of brand names
Consumers: affects likelihood of purchase
Employees: affects morale and productivity
Firm: can limit opportunities – e.g. new products, new regions
Investors: can cause subconscious judments about the companies merits/ strengths

Types of names
Type Definition Examples
Descriptive Names or describes the product/service Lean Cuisine
Metaphor Represents attributes or symbolism Infiniti
Surname A person’s name Ford
Ralph Lauren
Arbitrary Real words with no obvious brand Apple
association Camel
Altered Fictional words based on real words Lucent
Spotify
Blended Two words merged Facebook
Invented Nonsense words, not based on real words Exxon

08/03/2024
LESSON 3: BRAND ELEMENTS: COLOR & TAGLINES
Rules about color
• Ultimate goal is to own a color
• Different viewers experience color differently
• Ensuring consistency of color across platforms/ media is difficult
• Colors can create very strong perceptions
Color Meaning
Red thought to stimulate the appetite, also love (passion), excitement
Blue color most preferred by men; productive color; curbs appetite
Green tranquility and health; money, nature; fertility (M&M’s)
Brown reliability, boredom, practicality, earth
White purity, innocence, empty, spacious (create the illusion of space)
Black evil, death, mourning, slimming
Yellow bright, gives you energy; been show to make babies cry; causes eye
fatigue
Orange excitement, enthusiasm, warmth, caution
Lavender calms the nerves, relaxation
Purple royalty. wealth, success, wisdom
Pink girl’s color, calming, warm

Role of symbols
• Can communicate associations
• Multiple associations
• Positive feelings: liking

Slogans/ Taglines
• Can be tailored to a positioning strategy
• Can remove some of the ambiguity associated with brand and/ or symbol
• Can generate its own equity/ emotion (“reach out and touch someone”)
• Can reinforce the name or symbol (from sharp minds come sharp products)
Taglines basics
• Must be short
• Must be differentiated from competition
 • Must be unique
• Must be easy to say and remember
• Cannot have any negative connotations
• Can be protected and trademarked
• Evokes an emotional response
Types Examples
Imperative Nike: Just do it, HP: Invent, Apple: Think different
Descriptive UPS: Moving at the Speed of Business
Allstate: You’re in Good Hands
Superlative BMW: The Ultimate Driving Machine
Lufthansa: There’s No Better Way to Fly
Provocative Dairy Council: Got Milk?
Clever VW: Drivers Wanted

LESSON 4: BRAND ELEMENTS: PACKAGING

Packaging
• Can influence at the point of purchase
• Can have a continuing influence at the point of consumption
• Multiple objectives: Identify, Present information (descriptive and persuasive),
Protect and allow transportation, Store, Aid consumption
Creating impactful packaging
• Understand that package aesthetics and function are both critical
The package has to grab consumers’ attention in a sea of competing messages
But it also has to work well so that consumers will buy again
• Know your distribution channels
How do retailers view your package?
How are channels changing?
Which retailers like which package configurations?
09/03/2024
LESSON 5: BRAND ELEMENTS: PERSUASION
Persuasion: an active attempt to change belief and attitude
Elaboration likelihood model
Systematic (central) processing
- When motivation (involvement), opportunity and ability to process marketing
messages are high
- Focus mainly on “central cues” in the message
Superficial (peripheral) processing
- When motivation, opportunity, ability and elaboration likelihood are low
- Focus primarily on “peripheral cues” in the message

Peripheral cues
- Classical conditioning: you persuade people just by putting things together all the
time (Coke with hamburgers/ McDonald’s  I have a Big Mac then I’ll also have a
coke)
- Reciprocity: you owe me (you you a gift/ stamp in a charity appeal)
- Consistency: we’ve always done it that way
- Social proof: everybody’s doing it
- Liking: love me, love my ideas (celebrity spokesperson)
- Authority: just because I say so
- Scarcity: because there aren’t many of them, it must be good
What makes a good celebrity endorser?
General considerations:
- Target segment: celebrity/audience fit
- Message: celebrity/brand fit
- Celebrity attractiveness
 - Practical consideration: cost, celebrity exposure, risk, etc
- Social network
High Q-rating
- How appealing is this celebrity among those who do know him/her?
- Ratio of popularity/familiarity
- Conducted by Marketing Evaluations, Inc
Transfer of Meaning model
- Celebrities = individuals charged with detailed and powerful meaning
- Advertising firm chooses celebrity that best represents the appropriate symbolic
properties of the product
- Consumers derive meaning from celebrities and transfer same meaning to
product
- fMRI scans show that there is more brain activation when presented with images
of celebrities – “a visceral reaction to celebrity”
Source models
- Source credibility: effectiveness depends on celebrity’s “expertness” and
“trustworthiness”
- Source attractiveness: effectiveness dependent on
Familiarity: knowledge of the source through exposure
Likability: affection for the source as a result of the source’s physical appearance
and behavior
Similarity: supposed resemblance between the source and receiver of the
message
Celebs and Models
- Explicit mode: I endorse this product
- Implicit mode: I use this product
- Imperative mode: You should use this product
- Co-present mode – celebrity appears with product
LESSON 6: REPOSITIONING A BRAND
Brand equity MUST be actively managed over time
- Brand meaning must be reinforced
 - Sometimes brand meaning must be adjusted
- Branding program will need to be changed and new sources of equity identified
and built
5 rationales for brand change
1. The identity/execution was poorly conceived: can often be identified by measures
of customer interest, brand associations, sales
2. The target for the identity/execution is limited: may need to change to reach a
broader market
3. The identity/execution has become out of date: markets change such that a
working position may become obsolete
4. The identity/execution loses its edge, becomes old-fashioned: consumers and
markets change such that positions/executions that were once contemporary
become less so
5. The identity/execution has just become “tired”: same over time may become
boring to consumers, losing a bility to attract attention
CONSISTENCY THEORY: The basic idea is that there is a drive to maintain cosistency
within cognitive systems. Thus, cognitive structures may change in order to increase
consistency among elements
Elvolving brand associations: a brand can evolve more gradually to gain more
contemporary associations while maintaining familiarity
- Symbols: can update without changing meaning
- Brand name: can change to reflect evolving identity
- Slogans: easier to change than the name
- New products: can be true to the core identity, but add a modern, innovative
element

Example of evolving brand image

Before: BMW
A certain type of car - A German car – Expensive - Driven by the baby boomers
(Unpractical) (Stodgy) (Wasteful) (Stuffy)
Although these associations started out as positive, if they’re not carefully cultivated,
they could turn negative

After:
Sponsorships – Change the cars’ design – BMW sunglasses, watches
They associated their brand name with young, powerful and good imagery

10/3/2024
Final Exam
Q1) Which color is most preferred by men and is known to curb appetite?
A. Blue
 B. White
C. Black
D. Green

Q2) 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?
A. Implicit mode
B. Explicit mode
C. Imperative mode
D. Co-present mode

Q3) 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.
A. Just-noticeable difference
B. Consumer packaged goods modernization theory
C. Butterfly effect

Q4) Due to massive customer heterogeneity, Professor Fader would say there’s more
opportunity to “move the needle” via ___________ than ___________.
A. Retention; acquisition
B. Retention; development
C. Development; acquisition
D. Acquisition; development

Q5) 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?
A. Offer fair value on two bundles and offer better than fair value on the other
bundle.
B. Offer better than fair value on all three bundles.
C. Offer fair value on all three bundles.

Q6) In the STP framework, what does “STP” stand for?

A. Sizing; tabulating; positioning
B. Segmentation; targeting; pricing
C. Sizing; targeting; pricing
D. Segmentation; targeting; positioning
Q7) 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?
A. Other razors
B. Men with sensitive skin
 C. Outstanding shaving performance and comfort

Q8) In Nike’s brand mantra “Authentic Athletic Performance,” which of the three words
is the emotional modifier?
A. Performance
B. Athletic
C. Authentic

Q9) 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?
A. Blended
B. Invented
C. Surname
D. Metaphor

Q10) In Professor Kahn’s lectures, she discussed the two axes of color. What were the
two axes?
A. Arousal & Affect
B. Familiarity & Excitement
C. Brightness & Warmth

Q11) Customer centricity requires zooming in on your important customers. As you do

so, which of the following strategies do you want to focus on?
A. Try to treat all of your customers equally well
B. Try to turn all of the less valuable customers into highly valuable ones
C. Drop the least valuable customers, so you can focus your resources on your most
valuable customers
D. Keep the less valuable customers because they provide stability and robustness
to your customer mix

Q12) 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?
A. Customer needs assessment
B. Cross-selling
C. Customer referral program
D. Up-selling

Q13) In a product-centric company, rewards would be measured on metrics like all of

the following EXCEPT:
A. Share of wallet
B. Number of new products
C. Market share
D. Percentage of revenue from products less than two years old
Q14) In a customer-centric company, sales bias is on the side of the ____________ in a
transaction.
A. Broker
B. Buyer
C. Seller
D. Ultimate consumer

Q15) 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?”
A. Product; product
B. Product; customer
C. Customer; product
D. Customer; customer

Q16) Tesco and Harrahs rose to prominence in their industries by exploiting which
“crack in product centricity”?
A. Customer-level tracking
B. Globalization
C. Commoditization
D. Innovation

Q17) In a customer-centric approach, which customers should you be most concerned with?
A. The customers that have historically been most valuable
B. The customers that are likely to be most valuable
C. The customers who are most engaged with your products/services
D. The customers with the greatest degree of social influence

Q18) 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?
A. Give him incentives to refer his friends to Macy’s
B. Invite Joe into a VIP customer loyalty program once he graduates from school
C. Send a thank-you note to Joe to thank him for shopping at Macy’s for so many
years
D. 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

Q19) Which of the following is NOT an example of basic analytics for pricing decisions?
A. Margin/Contribution Analysis
B. Incremental Expenditures Analysis
 C. Economic Value to the Customer
D. Break-Even Analysis

Q20) Gloria owns a 100-acre property that needs to be mowed every week. Christopher
mows the property for her at the cost of $20 per acre. John wants to mow Gloria’s lawn
instead. According to Professor Raju’s analysis of Economic Value to the Customer, what
price should John charge to persuade Gloria to hire him instead of Christopher? in
switching her landscaper?
A. Exactly $2000
B. Exactly $2100
C. Less than $2000
D. More than $2000

Q21) John decides to charge a flat fee of $2000 for mowing any sized property.
According to Professor Raju’s analysis of Economic Value to the Customer, who would
be willing to pay more for John’s services than Christopher’s?
A. Alan, who has a 200-acre property
B. Betsy, who owns a mower
C. Don, who has a 50-acre property
D. Carol, who lives in an area where property taxes are lower

Q22) Which of the following is NOT a product that has predominantly digital attributes?
A. A printer cartridge
B. A book
C. A new pair of running shoes
D. A pair of socks you have purchased before

Q23) Which of the following is NOT one of the four inputs to the pricing process?
A. Marginal cost
B. Competitive pressures
C. Marginal revenue
D. Distributor margins
E. Willingness to pay

Q24) Which of the following is not one of the 7Ms?

A. Money
B. Market
C. Motivation
D. Media strategy
E. Message content
 F. Mission
G. Message design
H. Measurement

Q25) 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?
A. Metaphor
B. Surname
C. Altered
D. Arbitrary
E. Blended
F. Invented
G. Descriptive

Q26) Under the Elaboration Likelihood Model, a firm should only use central routing in
their marketing messaging if customers have:
A. The motivation to elaborate and the ability to elaborate.
B. The motivation to elaborate but NO ability to elaborate.
C. The ability to elaborate but NO motivation to elaborate.
D. NO motivation to elaborate and NO ability to elaborate.

Q27) Horizontal Conflict is when there is conflict between _____ while Vertical Conflict
is when there is conflict between _____.
A. Manufacturer and Retailer / Retailers
B. Retailers / Manufacturer and Customer
C. Retailers / Manufacturer and Retailer
D. Manufacturer and Retailer / Retailer and Customer

Q28) Which of the following is a non-digital attribute?

A. The fit of a pair of shoes
B. Length of a book
C. Delivery time
D. Price

Q29) According to Professor’s Bell lecture, changing which of the following had the
greatest impact on operating profits?
A. Variable costs
B. Volume
C. Price
D. Fixed costs

Q30) Which of the following best represents the idea of price elasticity?
A. If I raise volumes by 10%, by how much does the price adjust?
 B. If I drop the price by 1%, by how much does demand drop?
C. If I drop volumes by 10%, by how much does the price adjust?
D. If I raise the price by 1%, by how much does demand drop?

Q31) The tagline for Disneyland is “The Happiest Place on Earth.” What type of tagline is
this?
A. Provocative
B. Imperative
C. Descriptive
D. Clever
E. Superlative

Q32) 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:
A. Update the brand name to reflect evolving identities.
B. Slogans, which are easier to change than names.
C. Symbols: updating symbols can provide updates without changing meanings..
D. New products, which can be true to the core identity but add modern, innovative
elements.
E. Announcements: explaining to your customers that the brand will now be
focusing on a different customer segment.

Q33) How do you calculate Price Elasticity?

A. By dividing the percentage of Change in Demand by gross profits
B. By dividing the percentage of Change in Price by absolute manufacturing costs
C. By dividing the percentage of Change in Price by the percentage of Change in
Demand
D. By dividing the percentage of Change in Demand by the percentage of Change in
Price

Q34) 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?
A. Reciprocity
B. Liking
C. Logic
D. Authority
E. Social Proof
F. Consistency
G. Scarcity
H. Classic conditioning
Q35) If a company has used a celebrity endorsement in an “imperative mode,” what
message is the celebrity conveying?
A. “Everyone uses this product.”
B. “You should use this product.”
C. “I use this product.”
D. “I endorse this product.”

Q36) What are customer-centric companies required to do?

A. 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.
B. Be willing and able to change their organizational design, performance metrics
and incentive structures to focus on creating long-run customer value
C. 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.
D. No significant organizational changes are necessary: they just have to adopt a
customer-centric approach.

Q37) Understanding the process of perception is critical to understanding branding

because:
A. Brand names change people’s perceptions of products regardless of the quality of
the product
B. Perceptions affect subsequent behavior
C. No answers are correct
D. The proximity bias means that people assume that things that are close to each
other must belong together
E. Similarity bias means people assume that things that look alike must have the
same quality
F. All answers are correct

Q38) Which of the following factors does NOT reduce price sensitivity?
When the user cannot differentiate between differences in quality
A. Ease of comparison
B. Separation between the buyer and the payer
C. Separation in time between the point of purchase and the time of payment
Q39) What do the acronyms of the AIDA Model stand for?
A. Action, Imagination, Design, Attention
B. Attention, Interest, Design, Action
C. Attention, Interest, Desire, Action
D. Analysis, Implementation, Design, Achievement
Q40) What is the definition of the Endowment Effect?
A. Consumers are more likely to purchase a product priced at $19.99 than $20
B. Buyers compare the current price with a reference price
C. A sense of ownership increases a customer’s willingness to pay
D. Consumers react to prices in percentage terms as opposed to absolutes