Final Exam 33/40

Question 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?

Your Answer Score Explanation

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 Correct 1.00
bundle.

1.00 /
Total
1.00

Question 2
In the STP framework, what does "STP" stand for?

Your Answer Score Explanation

Sizing; tabulating; positioning

Sizing; targeting; pricing

Correct 1.00
Segmentation; targeting; positioning

Segmentation; targeting; pricing

Total 1.00 / 1.00

Question 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?

Your Answer Score Explanation

Other razors

Correct 1.00
Outstanding shaving performance and comfort

Men with sensitive skin

Total 1.00 / 1.00

Question 4
In Nike's brand mantra "Authentic Athletic Performance," which of the three words is the emotional modifier?

Your Answer Score Explanation

Correct 1.00
Authentic

Performance

Athletic

Total 1.00 / 1.00

Question 5
Liza goes to buy a coffee maker. There are 47 available models in the world. Liza has heard of 9 of these models,
of which she's only willing to buy 3. In this example, how many products are in her "consideration set?"
Your Answer Score Explanation

47

Correct 1.00
3

Total 1.00 / 1.00

Question 6
If a product is frequently promoted and put on sale, consumers tend to _________ their _________ reference point
for the item.

Your Answer Score Explanation

Lower; external

Correct 1.00
Lower; internal

Raise; internal

Raise; external

Total 1.00 / 1.00

Question 7
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?

Your Answer Score Explanation

Metaphor

Invented
 Correct 1.00
Surname

Blended

Total 1.00 / 1.00

Question 8
In Professor Kahn's lectures, she discussed the two axes of color. What were the two axes?

Your Answer Score Explanation

Brightness & Warmth

Correct 1.00
Arousal & Affect

Familiarity & Excitement

Total 1.00 / 1.00

Question 9
Which color is known for royalty, wealth, success, and wisdom?

Your Answer Score Explanation

White

Black

Blue

Correct 1.00
Purple

Total 1.00 / 1.00

Question 10
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?

Your Answer Score Explanation

Imperative mode
 Implicit mode

Correct 1.00
Co-present mode

Explicit mode

Total 1.00 / 1.00

Question 11
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.

Your Answer Score Explanation

Just-noticeable difference
 Inorrect 0.00
Butterfly effect

Consumer packaged goods modernization theory

Total 0.00 / 1.00

Question 12
If your attrition rate is 10%, then your typical customer lifetime is:

Your Answer Score Explanation

1 year

40 years

Correct 1.00
10 years

5 years

Total 1.00 / 1.00

Question 13
Due to massive customer heterogeneity, Professor Fader would say there’s more opportunity to “move the
needle” via ___________ than ___________.

Your Answer Score Explanation

Correct 1.00
Acquisition; development

Retention; development

Development; acquisition

Retention; acquisition

Total 1.00 / 1.00

Question 14
Tesco and Harrahs rose to prominence in their industries by exploiting which “crack in product centricity”?

Your Answer Score Explanation

Globalization
 Correct 1.00
Customer-level tracking

Commoditization

Innovation

Total 1.00 / 1.00

Question 15
In a customer-centric approach, which customers should you be most concerned with?

Your Answer Score Explanation

The customers who are most engaged with your products/services

The customers that have historically been most valuable

The customers with the greatest degree of social influence

Correct 1.00
The customers that are likely to be most valuable

Total 1.00 / 1.00

Question 16
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?

Your Answer Score Explanation

Show Joe that he’s still important to them by extending a store discount to Correct 1.00
him that will apply during his time as a student

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

Invite Joe into a VIP customer loyalty program once he graduates from
school

1.00 /
Total
1.00
Question 17
Customer centricity requires zooming in on your important customers. As you do so, which of the following
strategies do you want to focus on?

Your Answer Score Explanation

Try to turn all of the less valuable customers into highly valuable ones

Try to treat all of your customers equally well

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 Correct 1.00
robustness to your customer mix

1.00 /
Total
1.00

Question 18
What is the correct overall expected lifetime of this customer base?

Your Answer Score Explanation

20.9 years

4.9 years

Inorrect 0.00
12.3 years

7.6 years

Total 0.00 / 1.00

Question 19
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?
 Your Answer Score Explanation

Up-selling

Customer needs assessment

Customer referral program

Correct 1.00
Cross-selling

Total 1.00 / 1.00

Question 20
In a product-centric company, rewards would be measured on metrics like all of the following EXCEPT:

Your Answer Score Explanation

Market share

Number of new products

Inorrect 0.00
Percentage of revenue from products less than two years old

Share of wallet

Total 0.00 / 1.00

Question 21
In a customer-centric company, sales bias is on the side of the ____________ in a transaction.

Your Answer Score Explanation

Broker

Inorrect 0.00
Seller

Buyer

Ultimate consumer

Total 0.00 / 1.00

Your Answer Score Explanation

Product; product

Correct 1.00
Product; customer

Customer; customer

Customer; product

Total 1.00 / 1.00

Question 23
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?

Your Answer Score Explanation

Marketing effect

Treatment effect

Selection effect

Referral effect

Total 0.00 / 1.00

Question 24
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:

Your Answer Score Explanation

Inorrect 0.00
Treatment effect

Marketing effect
 Referral effect

Selection effect

Total 0.00 / 1.00

Question 25
During the product life cycle, which of the following groups adopts a new product or service during the
“Maturity” phase?

Your Answer Score Explanation

Innovators

Early majority

Early adopters

Laggards

Correct 1.00
Late majority

Total 1.00 / 1.00

Question 26
In the context of the product life cycle, which of the following is NOT true about the “Laggards” group?

Your Answer Score Explanation

They usually appear during the “Decline” stage of a product’s life cycle

They are at the opposite end of the product life cycle as the Innovators

Correct 1.00
People who are laggards for one product will be laggards for all products

They are the last people to adopt a new product or service

Total 1.00 / 1.00

Question 27
Which adage best sums up the concept of “homophily?”

Your Answer Score Explanation

Correct 1.00
Birds of a feather flock together

The early birds gets the worm

You can't teach an old dog new tricks

Total 1.00 / 1.00

Question 28
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.

Your Answer Score Explanation

Correct 1.00
3

Total 1.00 / 1.00

Question 29
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?"

Your Answer Score Explanation

Girls were influential over guys, whereas the same was not true for guys over
girls

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 indicate they're looking to date people have less influence over
other users
 People who are from the same ethnic/culture background, on average, Correct 1.00
have more influence over each other

1.00 /
Total
1.00

Question 30
Which of the following is a non-digital attribute?

Your Answer Score Explanation

Correct 1.00
The fit of a pair of shoes

Delivery time

Length of a book

Price

Total 1.00 / 1.00

Question 31
According to one of the studies Professor Bell discussed, which of the following Product Life Cycle groups is more
driven by better information on a product’s non-digital attributes that is spread through communication with
existing customers of the product?

Your Answer Score Explanation

Innovators

Laggards

Inorrect 0.00
Early adopters

Total 0.00 / 1.00

Question 32
According to Professor’s Bell lecture, changing which of the following had the greatest impact on operating
profits?

Your Answer Score Explanation

Correct 1.00
Price
 Volume

Fixed costs

Variable costs

Total 1.00 / 1.00

Question 33
Which of the following best represents the idea of price elasticity?

Your Answer Score Explanation

If I drop the price by 1%, by how much does demand drop?

If I drop volumes by 10%, by how much does the price adjust?

If I raise volumes by 10%, by how much does the price adjust?

Correct 1.00
If I raise the price by 1%, by how much does demand drop?

Total 1.00 / 1.00

Question 34
When you buy a computer from Apple, they ask whether you want to purchase the AppleCare Protection Plan,
which is an integrated service and support plan that is backed by Apple. You can purchase the protection plan
in store, but you can also wait and buy it anytime in the year following your purchase. According to what you’ve
learned in the course, which of the following is NOT a good reason for why a lot of people end up buying the
protection plan in-store?

Your Answer Score Explanation

You are only buying one computer, and small volume users tend to be more Correct 1.00
price sensitive.

There are Apple employees who are there to explain the benefits of the
program.

The protection plan is much less expensive than the laptop, and buyers tend
to be less price sensitive when the focal component is a smaller part of total costs.

1.00 /
Total
1.00
Question 35
In the context of mental accounting, how should you treat gains and losses (i.e. good news and bad news)?

Your Answer Score Explanation

Separate losses and combine gains

Correct 1.00
Separate gains and combine losses

Integrate gains and losses

Separate gains and losses

Total 1.00 / 1.00

Question 36
Which of the following is NOT one of the four inputs to the pricing process?

Your Answer Score Explanation

Correct 1.00
Marginal revenue

Distributor margins

Competitive pressures

Marginal cost

Willingness to pay

Total 1.00 / 1.00

Question 37
Which of the following is NOT a strategic advantage of direct channels?

Your Answer Score Explanation

Erecting barriers to entry against other competitors

Quality of direct market feedback

Ability to bundle with high margin products/services

Total 1.00 / 1.00

Question 38
Integrating, franchising, and monitoring are all strategies of managing __________ conflict.

Your Answer Score Explanation

Correct 1.00
Vertical

Horizontal

Total 1.00 / 1.00

Question 39
Which of the following is not one of the 7Ms?

Your Answer Score Explanation

Mission

Market

Measurement

Money

Message content

Message design

Correct 1.00
Motivation

Media strategy

Total 1.00 / 1.00

Your Answer Score Explanation

Demonstration

Spokesperson

Correct 1.00
Comparison

Total 1.00 / 1.00