MKTG455 Exam 1 with Verified Answers

Why is good positioning important? - Ans: clearly reflects a brand's competitive edge (I.e. competitive advantage, differentiating proposition) AND motivates consumers to action and purpose What is Brand Loyalty? - Ans: It is a consumer's commitment to continuing using or advocating a brand, as demonstrated not only by repeat purchases, but also by other positive brand behaviors (word of mouth advocacy, brand identification) Why is Brand Loyalty Important? - Ans: it is much cheaper to retain present customers than it is to prospect constantly to find new ones; can charge more; revenue premium (top of marcom effects/goals) Define Revenue Premium as it relates to brands - Ans: It is the ability to charge higher prices for premium brands due in large part to marcom efforts and the value of the brand What is the Consumer Processing Mode Model (CPM)? - Ans: involves attending to, encoding, retaining, retrieving and integrating information so that a person can achieve a suitable choice among consumption alternatives. The basis for this way of thinking is rational with two assumptions:(1) Assumes the consumer is an analytical, systematic and logical decision maker (2) Assumes consumers are motivated to achieve desired goals What is the Hedonic Experiential Model (HEM)? - Ans: emphasizes nonverbal content or emotionally provocative words and is intended to generate images, fantasies, and positive emotions and feelings. The basis for this way of thinking is an emotion or feeling: (1) Views consumer behavior as resulting from the pursuit of fun, fantasy or feelings. (2) Emotional considerations are more important than objective, functional and economic factors. What is the different btw the CPM and HEM? - Ans: rational v emotional Why do advertisers use the hierarchy of effects model as it relates to branding and consumer behavior? - Ans: the advertisers initial imperative is to make consumers aware of the brand What is the Hierarchy of Effects Model? - Ans: 1. Awareness: making the product known (through advertising)