RETL 425 TEST 1 QUESTIONS AND
ANSWERS
Perceptual Selection depends on - ANSWER-1. Nature of the stimuli: Includes the
product's physical attributes, package design, brand name, advertising and more...
2. Expectations: Based on familiarity, previous experience or expectations.
3. Motives: Needs or wants for a product or service.
Operant Conditioning - ANSWER-Behavior that are rewarded are more likely to be
repeated (sales, promotion, etc
EXMAPLE: Get 10th coffee free using card, repeat purchase in the future because of
the reward (free coffee)
Classical Conditioning - ANSWER-Compares unknown and known objects together
and you can expect something positive to come out of it (advertising, etc.)
EXAMPLE: Hot models on commercial (familiar) associated with Smith's Spark Plugs
(unknown) and in result will purchase smith's bc good feelings, etc.
J.N.D. (Just Noticeable Difference) - ANSWER-Minimal difference that can be
detected between two similar stimuli
• Weber's law - The j.n.d. between two stimuli is not an absolute amount but an
amount relative to the intensity of the first stimulus
- The stronger the initial stimulus, the greater the additional intensity needed for the
second stimulus to be perceived as different.
*** Marketers need to determine the relevant j.n.d. for their products
- so that negative changes are not readily discernible to the public (negative if above
JND)
- so that product improvements are very apparent to consumers (positive if below
JND)
Explain double conversion and how do retailers measure and calculate each
conversion? - ANSWER-Converting visitors to shoppers and shoppers to buyers,
requires 3 measures:
-visits (V): measured by Path Tracker (RFID on a cart), observation, electronic
counter
-shops (S): count visitors who exhibit a shopping behavior- spending sometime, not
just passing through
-purchases (P) from sales logs or observation
S/V: visitors to shoppers
P/S: shoppers to buyers
Store patron factors such as price, convenience, service, quality, etc. effect store
choice and product purchase behaviors. Discuss Walmart's retail strategy in terms of
store patron factor and what makes it successful. - ANSWER-Walmart runs on
providing the lowest price which is easily known just from looking at their slogan:
"Save money, live better" Consumers want more service and better products at
lower prices.
, • Walmart has store patronage factors that are very important to consumers such as
price and convenience
. Store Patronage Factors -- price, convenience, service, quality, etc.
What is key marketing strategy practiced by Tom's that made it successful and how
does Tom's satisfy consumer needs by implanting such strategies? - ANSWER-Tom
practices excellent societal marketing. Every shoe you purchase from Tom's, they
donate a shoe to someone in need. This creates positive image in consumers minds,
their profit goal is to help people in need, they give you a reason for wanting to
purchase their shoes, the business makes you feel good about your purchase.
Discuss how four drivers of successful customer relationships work on building and
maintaining customer relationships and what's the formula for measuring the level of
satisfaction? - ANSWER-The four drivers are customer value, satisfaction, trust and
customer retention. The formula for measuring this is satisfaction = perception -
expectation. If expectations EXCEED perceived value, then you have a disappointed
customer. If expectations EQUAL perceived value, then you have a satisfied
customer. You can to continually increase the perceived value in order to always
delight customers.
Net Promoter Score: Gives us a case about company, then calculate the net
promoter score and explain what it means and what we can do in the next step. -
ANSWER-NPS measures the loyalty of a brands relationship with its customers. To
calculate: you have to take total # of "detractors" (0-6) and divide by total number to
get the percentage. then take total # of "promoters" (9-10) and divide by total to get
percentage. THEN take the two percentages and subtract from each other. When
comparing the scores, only look at how you're doing in comparison to YOUR industry
or competitors. (Not all 28 industries)
Next step: Look at data by region/city and see which brand is doing well and see if
any are having issues. Look at each cleaning person individually. Follow up
research: contact customer and see what's the problem.
Customer Value - ANSWER-• Defined as the ratio between the customer's perceived
benefits and the resources used to obtain those benefits
• Perceived value is relative and subjective
• Developing a value proposition is critical
Customer Satisfaction - ANSWER-The individual's perception of the performance of
the product or service in relation to his or her expectations.
Customer Trust - ANSWER-• Establishing and maintaining trust is essential.
• Trust is the foundation for maintaining a longstanding relationship with customers.
Customer Retention - ANSWER-• The objective of providing value is to retain highly
satisfied customers.
• Loyal customers are key
- They buy more products
- They are less price sensitive
- Servicing them is cheaper
- They spread positive word of mouth
ANSWERS
Perceptual Selection depends on - ANSWER-1. Nature of the stimuli: Includes the
product's physical attributes, package design, brand name, advertising and more...
2. Expectations: Based on familiarity, previous experience or expectations.
3. Motives: Needs or wants for a product or service.
Operant Conditioning - ANSWER-Behavior that are rewarded are more likely to be
repeated (sales, promotion, etc
EXMAPLE: Get 10th coffee free using card, repeat purchase in the future because of
the reward (free coffee)
Classical Conditioning - ANSWER-Compares unknown and known objects together
and you can expect something positive to come out of it (advertising, etc.)
EXAMPLE: Hot models on commercial (familiar) associated with Smith's Spark Plugs
(unknown) and in result will purchase smith's bc good feelings, etc.
J.N.D. (Just Noticeable Difference) - ANSWER-Minimal difference that can be
detected between two similar stimuli
• Weber's law - The j.n.d. between two stimuli is not an absolute amount but an
amount relative to the intensity of the first stimulus
- The stronger the initial stimulus, the greater the additional intensity needed for the
second stimulus to be perceived as different.
*** Marketers need to determine the relevant j.n.d. for their products
- so that negative changes are not readily discernible to the public (negative if above
JND)
- so that product improvements are very apparent to consumers (positive if below
JND)
Explain double conversion and how do retailers measure and calculate each
conversion? - ANSWER-Converting visitors to shoppers and shoppers to buyers,
requires 3 measures:
-visits (V): measured by Path Tracker (RFID on a cart), observation, electronic
counter
-shops (S): count visitors who exhibit a shopping behavior- spending sometime, not
just passing through
-purchases (P) from sales logs or observation
S/V: visitors to shoppers
P/S: shoppers to buyers
Store patron factors such as price, convenience, service, quality, etc. effect store
choice and product purchase behaviors. Discuss Walmart's retail strategy in terms of
store patron factor and what makes it successful. - ANSWER-Walmart runs on
providing the lowest price which is easily known just from looking at their slogan:
"Save money, live better" Consumers want more service and better products at
lower prices.
, • Walmart has store patronage factors that are very important to consumers such as
price and convenience
. Store Patronage Factors -- price, convenience, service, quality, etc.
What is key marketing strategy practiced by Tom's that made it successful and how
does Tom's satisfy consumer needs by implanting such strategies? - ANSWER-Tom
practices excellent societal marketing. Every shoe you purchase from Tom's, they
donate a shoe to someone in need. This creates positive image in consumers minds,
their profit goal is to help people in need, they give you a reason for wanting to
purchase their shoes, the business makes you feel good about your purchase.
Discuss how four drivers of successful customer relationships work on building and
maintaining customer relationships and what's the formula for measuring the level of
satisfaction? - ANSWER-The four drivers are customer value, satisfaction, trust and
customer retention. The formula for measuring this is satisfaction = perception -
expectation. If expectations EXCEED perceived value, then you have a disappointed
customer. If expectations EQUAL perceived value, then you have a satisfied
customer. You can to continually increase the perceived value in order to always
delight customers.
Net Promoter Score: Gives us a case about company, then calculate the net
promoter score and explain what it means and what we can do in the next step. -
ANSWER-NPS measures the loyalty of a brands relationship with its customers. To
calculate: you have to take total # of "detractors" (0-6) and divide by total number to
get the percentage. then take total # of "promoters" (9-10) and divide by total to get
percentage. THEN take the two percentages and subtract from each other. When
comparing the scores, only look at how you're doing in comparison to YOUR industry
or competitors. (Not all 28 industries)
Next step: Look at data by region/city and see which brand is doing well and see if
any are having issues. Look at each cleaning person individually. Follow up
research: contact customer and see what's the problem.
Customer Value - ANSWER-• Defined as the ratio between the customer's perceived
benefits and the resources used to obtain those benefits
• Perceived value is relative and subjective
• Developing a value proposition is critical
Customer Satisfaction - ANSWER-The individual's perception of the performance of
the product or service in relation to his or her expectations.
Customer Trust - ANSWER-• Establishing and maintaining trust is essential.
• Trust is the foundation for maintaining a longstanding relationship with customers.
Customer Retention - ANSWER-• The objective of providing value is to retain highly
satisfied customers.
• Loyal customers are key
- They buy more products
- They are less price sensitive
- Servicing them is cheaper
- They spread positive word of mouth
