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Q4
Q5 (a) Explain the terms product item, product line and product mix with
appropriate examples.
PART B
Q3 What are the decisions that a brand manager has to take ? Explain them with
suitable examples.
Case Study
targeted Hispanic market found to be too mild. As a result, blind taste tests we
re done in Miami, New
York, Houston, and Los Angeles among 800 Latinos to test 35 different products.
Participants were asked
to rank everything from heat level and oiliness to aroma and appearance. The res
ults showed that
Hispanic snackers felt American snacks were not spicy enough and were looking fo
r something with
"uniquely authentic Latin flavors."
As a result of the market research, some changes were made to Doritos' original
line. For instance, the
Doritos Taco flavor, which was introduced in 1972 as "stacked with authentic Mex
ican taco flavor and just
the right blend of spices," failed to make the Latino grade. Some products were
rebranded, such as their
Baken-ets pork skins, which now adorn the Sabritas smiley-face trademark.
Other food makers are following Frito-Lay's lead in targeting Hispanics, such as
Subway, which is now
marketing a pork "carnitas" sub in Southern California. OtherPepsico units, such
as Gatorade, are getting
in on the act by launching flavors that will appeal to the Latino population, su
ch as mango and tropical
punch flavored "Xtremo."
The main competition faced by Frito-Lay is Barcel, a unit of the Mexican bakery
Grupo Bimbo SA, which
is importing snacks from Mexico. They realistically foresee doubling their busin
ess in the U.S. within the
next year or two.
2. How has Frito-Lay altered its current product line to carry out its new ethni
c
marketing strategy?
3. What basis did Frito-Lay use for making changes to their product line?
4. How do you envision that Frito-Lay's marketing strategy will impact the
approach other firms in the consumer products industry may take to ethnic
marketing?
5. If you were in charge of marketing for Frito-Lay, what product line
extensions would you recommend in light of the information you have
learned about the Hispanic market in this article? Explain your reasoning.
Part C
6. Total customer value is the bundle of costs customers expect to incur in eval
uating,
obtaining, using, and disposing of the given market offering.
a. True
b. False
b. False
and competitors
and associates
a. True
b. False
9. A value inquest consists of the whole cluster of benefits the company promise
s to
deliver; it is more than the core positioning of the offering.
a. True
b. False
10. One of the tools used to track and measure customer satisfaction is a compla
int and
suggestion system.
a. True
b. False
11. Companies that navigate all the pitfalls to reach their customer value and s
atisfaction
goals are called high-performance companies.
a. True
b. False
12. Examples of resources that a company can use to carry on its business proces
ses are
labor, materials, and information.
a. True
b. False
13. The shared stories, experiences, beliefs, and norms that every employee has
and
shares within a company are called policies.
a. True
b. False
14. Visionary companies are acknowledged industry leaders and are widely admired
, set
ambitious goals, communicate to their employees, and embrace a high purpose beyo
nd
making money.
a. True
b. False
15. A value chain is a tool used by a company to identify ways to create more cu
stomer
value through its activities.
a. True
b. False
16. The process of calculating a company s customer defection rate is called custo
mer
a. True
b. False
17. A highly satisfied consumer stays loyal longer, buys more products talks fav
ourably
about the company, and shops at competitors regularly to keep up with price
a. True
b. False
18. Customer lifetime value describes the present value of the stream of future
profits
expected over the customer s lifetime purchases.
a. True
b. False
19. Value equity is the customer s subjective and intangible assessment of the bra
nd, above
and beyond its objectively perceived value.
a. True
b. False
23. There are five main traits that describe brand personalities in marketing to
day.
They are sincerity, excitement, competence, sophistication, and what?
a. Reliable
b. Humorous
c. Daring
d. Ruggedness
24. Maslow s theory of motivation is made up of five levels. Which of the followin
g is
not one of those levels?
a. Self-concept needs
b. Social needs
c. Self-esteem needs
d. Physiological needs
25. ________________ mean(s) that the person has learned to recognize
differences in sets of similar stimuli and can adjust responses accordingly.
a. Drive
b. Cues
c. Discrimination
d. Learning
27. Complex buying behaviour involves a three-step process. Which of the followi
ng
is not one of those steps?
a. The buyer makes a thoughtful choice.
b. The buyer recognizes the need.
c. The buyer develops attitudes about the product.
d. The buyer develops beliefs about the product.
28. There are a number of ways in which marketers can learn about the stages of
the
buying process for their product. Which one is described as purchasers recalling
the events leading to their purchase?
a. Prescriptive method
b. Retrospective method
c. Prospective method
d. Introspective method
29. Candy has decided to go to McGill University because of the scholarships she
will receive. In what stage of the Buying Decision Process is she involved?
a. Purchase
b. Information Search
c. Post Purchase
d. Problem Recognition
30. When consumers compare their expectations to the actual delivery of a produc
t
or service and the expectations are exceeded, the consumers are said to be
what?
a. Unhappy
b. Disappointed
c. Delighted
d. Satisfied
31. The field of retail behaviour studies how individuals, groups, and organizat
ions
select, buy, use, and dispose of goods, services, ideas, or experiences to satis
fy
their needs and desires.
a. True
b. False
32. Different ethnic and demographic niches do not always respond favourably to
mass market advertising.
a. True
b. False
33. Social classes do not reflect income alone, but also other indicators such a
s
occupation, education, and area of residence.
a. True
b. False
34. Aspiration groups are those whose values or behaviour an individual rejects;
dissociative groups are those the person hopes to join.
a. True
b. False
35. Another shift in buying patterns is an increase in the amount of dollars spe
nt and
influence wielded by children and teens.
True
False
36. In the Empty Nest I stage, families are made up of older married couples, no
children living at home, and the head of household is in the labour force.
a. True
b. False
37. People who are computer-savvy are good prospects for home banking to pay
bills, switch money between accounts, and check their balances.
a. True
b. False
38. Brand personality is only created by those companies that have created a
cartoon character to represent their products and services.
a. True
b. False
in-depth interviews
and role playing) with a few dozen consumers to uncover deeper motives
triggered by a product.
a. True
b. False