Week 2 Notes
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This 7 page Study Guide was uploaded by Carolyn Notetaker on Tuesday July 26, 2016. The Study Guide belongs to 216 at Arapahoe Community College taught by Adam Shelfo in Summer 2016. Since its upload, it has received 42 views. For similar materials see Mrk 2016 in Marketing at Arapahoe Community College.
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Date Created: 07/26/16
Jarvis 1 Carolyn Jarvis Professor Adam Shellfo MAR 216 5 July 2016 Chapter 4 1. How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 200 million subscribers in 48 countries today? Consumer behavior are the actions that a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. According to Julie Mossler, PR and Consumer Marketing Manager at Groupon, “Part of the reason that Groupon has grown as quickly as it has is because we really understand consumer behavior,” Groupon continues to grows because they understand the behaviors of their consumers and luckily, their consumers all make the same purchasing decisions as each other. 2. What is the Groupon Promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance? The Groupon Promise states that any customer can return a Groupon, no questions asked —even if they used it—if they feel like Groupon has let them down. Because Groupon has made such a great promise to its customers, they see shopping through them as less of a perceived risk. According to SmallBusiness.com, “Any time customers consider purchasing a new product or signing up for a new service, they also face a set of uncertainties about the product or service collectively referred to as perceived risk.” With Groupons promise, consumers feel less uncertainty. Similarly, the Groupon Promise affects cognitive dissonance by getting rid of most Jarvis 2 of the post purchase anxiety by offering a “no questions asked” return policy even if the Groupon has been used. 3. Describe the fivestage purchase decision process for a typical Groupon user. The fivestage purchase process consists of problem recognition, information search, alternative evaluation, purchase decision, and postpurchase behavior. This is how the purchase decision process applies to a Groupon users: a. Problem Recognition Created when an email offer is sent to a user as well as when a consumer is given a realtime offer through push notification, often because of their location and browsing history.. b. Information Search An offer seen on Groupon can create an “external search” which will often lead to discussions with friends and family and create comparison shopping. Additionally, a person might reflect on past experiences. This is called, “internal search.” Both are types of information Search. c. Alternative Evaluation An example of this is when people are focused on price, then other aspects, like quality and time restrictions. d. Purchase Decision The purchase decision is made online and then confirmed when the deals tip. e. Postpurchase Behavior This is how a person behaves after they have made their purchase and used their Groupon. They can use this experience to gauge if they are happy with the product or unhappy and if they will purchase it again. Jarvis 3 4. What are possible psychological and sociological influences on the Groupon consumer purchase decision process? Psychological, sociocultural, and situational factors also influence Groupon users’ purchase behavior. 5. What challenges does Groupon face in the future? What actions would you recommend related to each challenge? Two challenges Groupon faces are: a. Not reminding consumers of when their product will expire. I have so many expired Groupons on my phone, personally and I know that many others do to. If they had a warning push notification I think their customers would be more satisfied in the long run. b. Competition. Many other sites are similar to Groupon and some of them are even set up better, like LivingSocial. Chapter 7 1. What are the advantages and disadvantages for the Carmex marketing team in collecting data to narrow the flavor choices from three to two using (a) an online survey of a crosssection of Internet households The advantage of using an online survey is that Carmex would gain more statistics that would help their marketing team in finding the best two. The disadvantage would be that you do not know how many of these people have actually used Carmex and if they would purchase the flavors they helped the company decide on. or (b) an online survey of Carmex Facebook likers? Jarvis 4 The advantage of using an online survey of Carmex Facebook likers is that you already know that they like Carmex because they sought out the page to like it. The disadvantage would be that many fans may not want to take the survey or see it as being spam. 2. (a) On a Facebook brand page, what are “engagement” and “likes” really measuring? The engagement measures the activity of the fans who are visiting Carmex’s Facebook page and the likes measure how big that crowd is exactly. (b) For Carmex, which is more important and why? For Carmex engagement is the most important because they are getting free information from their consumers. 3. (a) What evokes consumers “engagement” on a brand page on Facebook? Asking a question to create a poll on Carmex’s Facebook page evokes consumer’s engagement on the page, forcing them to interact with the page by commenting or liking the question. (b) What attracts consumers to “like” a brand page on Facebook? Consumers will often like a page because there is often the opportunity to win prizes or learn about deals. Also, they might just really like the product. 4. (a) What are the advantages and disadvantages of using a fixedalternative poll question on Facebook? An advantage of using a fixedalternative poll is that it does not require the consumer to type in an answer. The disadvantage is that this does not lead to open discussion filled with lots of free information. Jarvis 5 (b) When do you think it would be better to use an openended question? It would be best to use an openended question when trying to spark up a conversation with consumers about a specific detail about a product. 5. (a) If you had a limited budget and two weeks to decide which two flavors to put into quantitative testing, would you choose a “poll only” or a “contest only” strategy? Why? I would choose poll only because it gives the consumer will answer honestly and not just because there is a chance of winning something. (b) If you had a sizeable budget and two months to make the same decision, which scenario would you choose? Why? I would still make the same decision. The true fans of your product will give you honest answers. A prize would be better for promoting the product, in my opinion. Chapter 8 1. In the 21st century, what trends in the environmental forces (social, economic, technological, competitive, and regulatory) (a) work for and (b) work against success for Prince Sports in the tennis industry? What works for Princes Sports in the 21st century is that they have continued to be technologically innovative with their products, like their “oversize” and “longbody” racquets. However, what works against their success is their inability to adapt to the 21st century lifestyle and needs.This is why they fell behind by pricing their products too low and pushing them to Jarvis 6 bankruptcy. A more modern example of this is Sports Authority. They were also unable to keep up with price points and demands for advanced products. 2. Because sales of Prince Sports in tennisrelated products depends heavily on growth of the tennis industry, what marketing activities might it use in the United States to promote tennis playing? Prince could sponsor tennis teams, both big and small. This will help them promote their product as people will want to buy what their favorite players are wearing and promoting. 3. What promotional activities might Prince use to reach (a) recreational players and (b) junior players? They could do school sponsorship, hosting junior tournaments, web advertisements, and create a social media presence. Denny’s is an example of a company who has created a fun web presence. They communicate in funny/relatable ways through Facebook, Twitter and Tumblr. 4. What might Prince do to gain distribution and sales in (a) mass merchandisers like Target and Walmart and (b) specialty tennis shops? They should continue to promote themselves through sponsorships, social media and could even advertise online coupons for people interested in trying their products. This would convince small and big stores to pick them up. 5. In reaching global markets outside the U.S., (a) what are some criteria that Prince should use to select countries in which to market aggressively, (b) what three or four countries meet these criteria best, and (c) what are some marketing actions Prince might use to reach these markets? Jarvis 7 They should choose countries that love playing tennis. Three of these countries would be, UK, France and Germany. They should sponsor players in these countries and use marketing strategies that are popular in these countries.
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