MKT 368 Exam 1 Prep

Which of the following is not included in the First Principles of Marketing Strategy?

All customers are alike

Which of the following is not included in the First Principles of Marketing Strategy?

All customers are homogeneous

Suppose you are a regional manager overseeing the Chicago-Minneapolis area. You feel that certain types of products (let's say red vs. green shoes) sell better in retail stores located in Chicago area than Minneapolis . What statistical test is most appropriate to test your hypothesis?

Chi Square

Which statistical test should you run to test the association between the state that an individual was born (Wisconsin vs. Minnesota) and favorite football team (Packers vs. Vikings)?

Chi Square

The dendrogram shows how much distance separates the next two dissimilar segments

False

A _______ variable is a variable created to assign numerical values to levels of categorical variables. Each dummy variable represents one category of the explanatory variable and is coded with 1 if the case falls in that category and with 0 if not.

Dummy

What are the sources of customer heterogeneity? Select all that apply.

Individual differences Life experience Functional needs Self identify Promotional activities

Customer heterogeneity may be latent or hidden.

True

The coefficient of determination (R2) is the portion of the total ___________ in the __________ that is explained by variation in the independent variable.

Variation dependent variable

Segmentation _________ should describe why customers respond differently (e.g., differences in their valuations of offerings, needs or wants) whereas segmentation __________ help marketers deliver different offers to various customer segments based upon characteristics (e.g., age, income, use of media).

bases descriptors

DJ's boss told him that he needs to identify a set of "observable" variables that helps the firm understand how to reach and serve the needs of selected clusters. DJ has no clue what his boss is asking him to do, so he asks his colleague, Jessica. Jessica indicates that DJ's boss is asking him to use a formal approach to profiling which seeks combinations of descriptor variables that best separate the clusters or segments. Jessica notes that DJ should engage in ________________ analysis.

discriminant

Four Principles of marketing

resources are limited customers are different customers change over time all competitors react

____________ is a process of dividing the overall market into groups with similar needs and desires.

segmentation

Competitors are always copying successful strategies and innovating new ones. Thus, companies need to build a "barrier" to being copied, giving them time to adapt to innovation by others. These barriers are termed _____________ and are critical to long-term superior financial performance.

sustainable competitive advantage

Which statistical test should you run to test whether a retail store foot traffic is higher in Northgate Mall vs. Jordan Creek Mall?

t-test

Regression describes the relationship between sales and price by "fitting the line" that best describes the data

true

The chance of making a Type II error increases as the sample size decreases.

true

____________ indicates how well the model fits the data, but it penalizes you for adding independent variables that do not fit the model.

Adjusted R2

________________ arises when two variables that measure the same thing or similar things (e.g., weight and BMI) are both included in a multiple regression model; that is, two (or multiple) variables regressors are highly correlated.

Multicollinearity

Confidence interval is a plausible range of values for the sample parameter

false

The chance of making an alpha risk (Type I error) does depend on sample size.

false

What does the acronym CRM stand for?

Customer Relationship Management

Discriminant variables include characteristics that tell us why segments differ (e.g., needs, wants, benefits, solutions to problems) whereas Segmentation variables include characteristics that tell us how to find, reach, identify segments(age, income, education, location, org structure)

False

Low R-squared values imply that you need to disregard the results from the linear regression.

False

The brand and offering strategy needs to address these conditions? (Check all that apply)

Firms must have a relative advantage over its competitors Customer must care about what SCA offers SCA must be hard to duplicate or substitute

Brands, offerings and relationships are 3 key marketing sources of______

Sustainable competitive advantage

If a marketing analyst wants to know whether customers in Ames buy more products than those in Ankeny, what are the types of analyses can the analyst run? (Choose all that apply) chi-test equal variance test f test t-test regression

T-test & Regression

Which one of the following is a correct interpretation of a p-value?

The p-value is the probability of getting a value of a test statistic as or more extreme than the value of the statistic computed from the collected data, under the assumption that the null hypothesis is true