战略营销Test-BankChapter-8-Question-Bank-7-28-2017.docx

Marketing Strategy: Based on First Principles and Data Analytics

Marketing Strategy:
Based on First Principles and Data Analytics

Question Bank

Chapter 8 Question Bank

MULTIPLE CHOICE QUESTIONS

1) Resource trade-off decisions (check all that apply):
a) Change over time
b) Occur across all four Marketing Principles
c) Require difficult-to-obtain information
d) All of the above
Answer: D
2) _____________ refers to the potentially utilizable resources a firm possesses that it could divert or re-deploy to achieve organizational goals:
a) Resource slack
b) Resource trade-off
c) Potential resources
d) None of the above
Answer: A
3) ________________ stage products require large resource allocations to their launch, testing, and advertising to create awareness:
a) Growth
b) Matured
c) Introductory
d) None of the above
Answer: C
4) Following are sources of resource trade-offs (check all that apply):
a) Changes in customer needs
b) Changes in product market landscape
c) Changes in lifecycle stage of a firm’s products
d) All of the above
Answer: D
5) Which of the following is not true about cutting costs:
a) It is one form of management
b) Redirects resources to other plausible areas
c) It directly creates SCAs in the long-term
d) All of the above
Answer: C
6) In the __________ era, managers solve the resource allocation problem using simple rules of thumb, driven by intuition and judgement:
a) Data
b) Heuristics
c) Both
d) None of the above
Answer: B
7) In the __________ era, firms use historical data to reveal the link between their past resource trade-off decisions and outcomes:
a) Artificial Intelligence
b) Heuristics
c) Data
d) None of the above
Answer: C
8) In the __________________, managers simply set their present resource allocation to a level very close to the previous year’s spending:
a) Percentage of sales method
b) Percentage of profits method
c) Historical method
d) Competitive parity method
Answer: C
9) When allocating resources according to scientific methods, firms determine the _______of each investment.
a) capability
b) cost-savings
c) profit-maximizing capability
d) value
Answer: C

10) In the __________________, managers set resource levels to match those of their competitors.
a) Percentage of sales method
b) Percentage of profits method
c) Historical method
d) Competitive parity method
Answer: D
11) Using ______________, managers can allocate resources to optimize their desired outcome, as well as avoid waste or reliance on arbitrary heuristics:
a) Attribution models
b) Anchoring and adjustment heuristic models
c) Choice models
d) None of the above
Answer: A
12) Following are the types of attribution models: (check all that apply):
a) Choice models
b) Experimental models
c) Response modes
d) None of the above
Answer: B & C
13) Following are the components of experimental attribution model:
a) Intervention
b) Outcome
c) Control group
d) All of the above
Answer: D
14) Internal validity, which means that an experiment is well designed, reflects the following three key criteria:
a) Temporal precedence check
b) Covariation check
c) Competitor analysis check
d) Non-spuriousness check
Answer: A, B & D
15) A _______________ is a statistical model that captures the relationship between past marketing resources and past outcomes:
a) Experimental model
b) Choice model
c) Response model
d) None of the above
Answer: c
16) _______________ aims to ensure consistency in marketing efforts to maximize effectiveness, such that the total impact exceeds the sum of each individual activity’s impact:
a) Integrated marketing communications
b) Experimental models
c) Heuristic approach
d) None of the above
Answer: A
17) _______________ refers to outcomes increase due to greater marketing resources but at a diminishing rate:
a) Concave response
b) Linear response
c) S-shaped response
d) None of the above
Answer: A
18) _______________ refers to outcomes increase to infinity as marketing resources keep increasing:
a) Concave response
b) Linear response
c) S-shaped response
d) None of the above
Answer: B
19) ______________ are monetarily based and entail ratios that can be easily converted to monetary outcomes:
a) Marketing metrics
b) Financial metrics
c) Monetary metrics
d) None of the above
Answer: B
20) ______________ reflect customers’ attitudes, behaviors, or mindset, such as awareness, satisfaction, loyalty, or brand equity:
a) Marketing metrics
b) Financial metrics
c) Customer metrics
d) None of the above
Answer: A
21) ______________ provide more insight that the ultimate financial outcome; they are closer to the customer, and tend to change more quickly in response to resource changes:
a) Customer metrics
b) Resource metrics
c) Intermediate metrics
d) None of the above
Answer: C
22) The following marketing terms are a part of the customer delight metrics (check all that apply):
a) Awareness
b) Price premium
c) Loyalty
d) Market share
Answer: A, B & D
23) A “sweet spot” in profit functions, refers to point at which firms should ____________________:
a) Invest more
b) Invest neither more nor less
c) Invest less
d) None of the above
Answer: B
24) The percentage of profits method works better than the percentage of sales method when:
a) Markets are stable
b) Political factors have less influence
c) Geographic factors have less influence
d) None of the above
Answer: D
25) With the basic—and often reasonable—assumption that____________, this approach leverages the past data to isolate the relationship between marketing resources and performance:
a) Future outcomes are perfectly predictable
b) Past outcomes predict future outcomes perfectly
c) Past outcomes predict future outcomes reliably
d) None of the above
Answer: C

26) Advertising elasticity is higher:
a) For nondurable rather than durable goods
b) In early rather than mature stages of the life cycle
c) When advertising is measured in monetary terms rather than gross rating points
d) None of the above
Answer: B
27) Promotions can induce __________, such as when the promotion encourages trial so that customers learn they like the product and possibly remain loyal to it:
a) long-term effects
b) competitive effects
c) heightened consumption
d) synergy
Answer: A
28) __________metrics provide more insight than the ultimate financial outcome; they are “closer” to the customer:
a) Soft
b) Intermediate
c) Satisfaction
d) CRM
Answer: B
29) With a/an _______ approach, the manager identifies an outcome and an intervention of interest, then administers that intervention to a chosen group, while holding the intervention for another, similar group constant:
a) Focus group
b) Experimental attribution
c) Control theory
d) Competitive parity
Answer: B
30) A/An _______ approach attempts to make optimal allocations across nested levels of decisions, over time:
a) Anchoring
b) Iterative
c) Hierarchical
d) Attribution
Answer: B

TRUE/FALSE QUESTIONS
31) Most marketing decisions require trade-offs across multiple objectives, because resources are constrained and often interdependent.
Answer: TRUE
32) Several factors increase the need for ongoing resource trade-offs, including limited resources (resource slack), changes in the composition of consumer segments, changes in the lifecycle stages of the product portfolio, changes in the market landscape due to competitive actions, and stability in the effectiveness of marketing activities.
Answer: FALSE (last one is wrong)
33) Approaches to managing resource trade-offs have evolved from an exclusively heuristic-based era, in which managers solved resource allocation problems using simple rules of thumb, intuition, and judgment, to a data-based era, in which managers rely on statistical models and detailed information.
Answer: TRUE
34) The attribution approach relies on anchors, often related to spending in the previous period, which managers use to make marketing resource allocation decisions. Then managers may adjust their decisions every period, after observing the prior outcomes.
Answer: FALSE
35) An attribution approach asks, How does a specific (e.g., 1 percent) increase in a resource option affect a particular outcome, keeping all else constant? The model integrates past decisions and past outcomes, then produces a mathematical assessment of how much impact each resource trade-off truly has for generating outcomes.
Answer: TRUE
36) An anchoring approach captures the relationship between past marketing resources and past outcomes. A basic assumption is that past outcomes relate to future outcomes, which is usually reasonable. The use of past data then can uncover the relationship between marketing resources and performance.
Answer: FALSE
37) The inputs of the resource tradeoff framework are the outputs of previous three principles.
Answer: TRUE
38) The outputs of the competitive advantage framework are a description of the firm’s resource plans and budgets and the use of key marketing metrics that can effectively validate these resource outlays.
Answer: FALSE
39) The concept that estimates how much financial outcomes would change if marketing efforts increased by 1 percent is called marketing elasticity.
Answer: TRUE

ESSAY TYPE QUESTIONS

40) Write a short note about experimental-based attribution.
Answer: Firms operate in environments in which various factors operate simultaneously. For example, in the intensely competitive, dynamic online retail sector in China, managers of Alibaba would find it hard to prove (or disprove) that their marketing resources pay off in specific marketing outcomes. Yet managers still must make constant, rapid decisions about whether to commit resources and how much to commit. With this approach, all other factors (at least those under the firm’s control) that can influence sales are purposefully kept constant. Thus, the firm deliberately generates a scenario that enables it to quantify the financial impact of the marketing resource that it alters through the experiment. Because external effects also are always at play—perhaps Macy’s sales generally increase month-to-month, such that any increase in sales in a particular month is not necessarily attributable to greater online search advertising—a control condition can be beneficial. The control would involve a region similar to the experimental region for which the search advertising levels remain constant over the month. Then a control group exists, comprised of all consumers who were not exposed to the intensified search advertising through Google. If sales increase among the control group, but by less than the increase among the experimental group, Macy’s would have evidence of the incremental effect of its increased search advertising expenditures, for a group that is similar in all other respects.
41) Write a short note about different anchoring and adjustment approaches.
Answer: Relationship Anchoring and adjustment heuristics are widely used, though the exact anchoring rules vary in practice:
¡ In the percentage of sales method, marketing resources reflect the sales revenue earned from the focal product
¡ With the percentage of profits method, the resources dedicated to marketing instead vary with the profits earned by the product in previous periods
¡ Managers who adopt the historical method simply set their present resource allocations to a level very close to the previous year’s spending
¡ Finally, the competitive parity method implies that managers set resource allocation levels to match those of their competitors.

42) Write a short note about response model based attribution.
Answer: A response model is a statistical model that captures the relationship between past marketing resources and past outcomes. The underlying philosophy is that historical data contain insightful information about whether and how much marketing resources truly increase outcomes, which is useful to know when deciding on future marketing actions. With the basic—and often reasonable—assumption that past outcomes relate to future outcomes, this approach leverages the past data to isolate the relationship between marketing resources and performance. Response models also offer many advantages, in terms of their flexibility and usefulness.
43) Write a short note about four uses of a response model.
Answer: Historical data contain insightful information about whether and how much marketing resources truly increase economic outcomes, which is useful to know when deciding on marketing actions in the future. A basic assumption is that past outcomes relate to future outcomes, which is reasonable most of the time, barring exceptions like recessionary periods. Using past data to uncover the relationship between marketing resources and performance, response models provide four main insights. First, they capture the shape of the relationship between marketing resources and outcomes, which is usually concave: Financial outcomes increase with increases in marketing resources but at a diminishing rate. Second, response models reveal exactly how much financial outcomes would change if marketing efforts increased by 1 percent, also known as marketing elasticity. Third, with a response model, marketing managers can figure out the relative impact of several resources and thereby allocate them optimally and in proportion to the effectiveness of the different activities. Fourth, response models help managers capture the effect of focal marketing efforts on outcomes while also controlling for competitive marketing efforts, which may increase the clutter in the market.

44) What are the key outputs of the resource tradeoff framework?
Answer: A fundamental problem for effective resource allocation is identifying and measuring the best or most appropriate metrics. As a popular saying holds, a firm is only likely to achieve what it measures. For most marketing resource investments, both financial and marketing metrics are necessary to capture the different aspects of the benefits earned from the investment). Another set of outputs pertains to the three components of each resource allocation decision: Budget per marketing activity, or the size of the commitment the firm makes to the marketing activity, Allocation across categories, which reflects the percentage split of the marketing budget for a specific activity across categories, and Time horizon of the budget, involving the timespan for which the firm commits to this marketing budget. Thus when choosing its advertising budget, for example, a firm would determine how many total dollars to spend (budget) on different forms of advertising (e.g., print and online), as well as how long to run the advertising campaigns (e.g., two months)

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