Lecture 19 Course Review 2 (post-class)

MKTG-UB.01 Introduction to Marketing Spring 2023 Lecture 19: Course Review 2 Runshan Fu NYU Stern School of Business 2 Framework of Marketing P roduct P lace P rice P romotion Market Tactics Market Strategy C ustomer C ompany C ompetitor S egmentation, T argeting, P ositioning Implementation Marketing Analytics (Market Research) Exam Logistics § Date: April 20 th , Thursday § Time: Class time § Place: UC21 (this room) § Open book: You are allowed to bring printed slides, printed/written notes, handouts, your exam I paper No electronic devices (other than calculators) are allowed § What else to bring Calculator Pen/pencil Exam Logistics § Types of questions: 15 multiple-choice questions with one correct choice (45 points) 10 multiple-choice questions with two correct choices (40 points) 3 short answer questions (25 points) Total: 110 points One short-answer bonus question (6 points) § Contents: everything we have covered ~20% on materials covered in the first half of the semester 4Ps (Product, Pricing, Promotion, Place) Case: Uber, J.C. Penney, Rocket Fuel 2 Guest lectures
Exam Logistics § Timing Exams will be collected promptly at 9:15/10:45 If you do not stop writing at the ending time, you will lose 10 points No extra time will be given if you are late § If you have any questions during the exam, please write your question on a paper and raise your hand. § There will be two versions of the same exam Product § Which of the following methods is proper for the "concept development and testing" stage of product development? A. Conjoint analysis B. Simulated test market C. Full-scale test market D. Brainstorming Pricing § Which of the following factors does NOT affect consumers' price sensitivity? A. Importance and necessity of the need B. The fixed cost of producing the product C. Perceived uniqueness of the product D. Ease of searching and comparing the product to its alternatives Pricing § A supermarket DWT sets the retail prices of each product they sell in the following way: based on the wholesale price at which they purchase the product from the manufacturer, they add 30% profit margin as the retail price. What is the pricing method they use? A. Hypothetical survey B. Cost-based pricing C. Incentive-aligned choice experiment D. Value-based pricing
Pricing § Retailers should set relatively lower prices for frequently purchased, relatively standard items like eggs, milk, etc. What is the reason for this? A. Because consumers use the prices of "signpost" items to form an overall impression of a store's prices. B. Because consumers have left-digit bias C. Because price affects quality perception D. Because aggregation makes people perceive it larger Pricing Company ABC uses an incentive-aligned choice experiment to estimate the demand curve of its product. It test five different price point: $9, $19, $29, $39, $49. Following the rule of thumb, they recruit 30 respondents for each price point. After all respondents make the choice, they randomly select 1/50 of them to give the budget and make these respondents choice realized. § Which of the following is a proper budget to give to a respondent if the lotter succeeds? A. $30 B. $50 C. $100 § What is the cost of this choice experiment? 30*5*(1/50)*50 = 150 Pricing § Given the results of the incentive-aligned choice experiment, the estimated demand curve of the product is Q(p)=M*(1-0.02p), where the market size M=10,000. The variable cost of producing and selling a product is $20. What is the profit-maximizing price? ! = 1 2 ∗ 0.02 + 20 2 = $35 § The fixed cost of producing the product is 20000. Should company ABC produce the product? π = ! − . ∗ / 1 − 0! − 1 = 35 − 20 ∗ 10000 ∗ 1 − 0.02 ∗ 35 − 20000 = 25000 Yes, company ABC should produce the product. Promotion § A TV channel has an official account on Twitter. Every day the official account posts tweets with the information about the shows that will be broadcast on the channel. What format of promotion does this belong to? A. Traditional advertising B. Direct marketing C. Sales promotion D. Personal selling
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