 Hi, welcome. My name is Dr. Marcy Stone and this is the practice exam review for case two of your consumer behavior course. All right, so now we're going to get to a little bit of an over organizational overview. So phones corporation or phones corp is an international manufacturer and distributor of mobile devices and related technology. They're headquartered in Seoul, South Korea as part of the Gangnam conglomerate, the world's largest information technology company, consumer electronics maker and chip maker. Their products are sold through mobile service providers located in each country or region, independent retailers as well as their company owned stores. Phones corp also sells directly to consumers and businesses through their online channels. The company sells its products through five main operating divisions as follows. The Americas, Europe and the common wealth of independent states or CIS, the Middle East and Africa, Asia excluding China and China. Phones corp has maintained the highest international market share in the overall mobile devices market. In the premium phone market, they have over three times the premium phone market share compared to their nearest competitor. Phones corp is searching for opportunities to improve its position and increase its share. Company growth over the last few years has remained steady except for in the premium phone category. The CEO is a well respected industry veteran with 30 years of experience at various companies in the industry and the last 15 years at Phones corp. Phones corp manufactures and sells in four distinct product lines as follows. We have, first we have premium smartphones. This consists of three products. You have your base, your plus and ultra. These phones feature larger screens, faster processors and advanced cameras. Then we have standard smartphones. This consists of three less advanced smartphones with smaller screens, slower processors and basic cameras. Then we have tablets and computing devices. This includes eight inch or larger tablets and with and without keyboards. And then finally we have wearables and other devices. So this consists of watches that link to smartphones and earbuds and headphones. Updated or new versions of each product are released yearly through a major launch event that is covered by the press and industry and analysts. And now we have distribution. So products are mostly sold in their company owned stores which include sales tech support and training services. They are also sold through kiosks in partner retail stores via their online store and mobile phone carriers. The products are shipped to their customers using established shipping carriers such as FedEx, UPS, DHL and local postal services. The majority of the products are delivered via standard ground shipping although they also use and offer two-day, one-day and same-day delivery when needed. Despite their marketing position as the leading phone manufacturer, sales growth has slowed in the last four years and is highly seasonal with the first quarter outpacing the rest of the quarters each year due to the new product launches that occur in that quarter. Profits have also nearly doubled over the four years with the average profit rate for each category remaining about the same for each year. The company provides its major providers with product allowances for advertising in their commercials and displays in their store. The sales distribution of the overall categories has been consistent over the last four years with premium smartphones representing 39% of total sales, standard smartphones representing 24%, tablets and computing devices representing 26% and wearables representing 11%. Each of the following cases will be based on this overview. They will assess your ability to apply the concepts of this course to the case of Phones Corp. To maintain its market leadership, the chief marketing officer or CMO has received a budget to implement a customer relationship marketing CRM program. Understanding the nature and power of consumer attitudes is crucial for the success of this initiative. Consumer researchers will need to utilize attitude models to dissect and identify specific components that influence a consumer's overall attitude toward a product or brand. By analyzing these components, Phones Corp can tailor its marketing messages and strategies to align with consumer preferences and positively influence their attitudes. The structure of marketing messages plays a pivotal role in persuasion. Understanding how different message structures impact consumer attitudes enables Phones Corp to craft messages that resonate with its target audience, which will enable them to communicate product features effectively and drive positive attitudes. Recognizing the diversity of its audience, Phones Corp needs to tailor its marketing strategies by considering whether the nature of the source or the content of the message will be more effective. For instance, the approach towards tech savvy consumers might differ from that towards older demographics, emphasizing the importance of audience characteristics in message delivery. Understanding consumer attitudes is paramount for Phones Corp in its quest to maintain market leadership and implement a successful CRM program. By leveraging this understanding of various aspects of marketing, Phones Corp can effectively influence consumer behavior and foster long-lasting customer relationships in an ever-evolving mobile device industry. Consumer decision making is a multi-stage process. By comprehending how consumers progress through these stages, Phones Corp can strategically position its products and marketing efforts to guide consumers towards selecting their products over competitors. The digital era has transformed how consumers make purchase decisions. With access to abundant online sources, Phones Corp must ensure a strong online presence, positive online reviews, and informative content to influence consumer attitudes and decisions. Online sources are now crucial touchpoints to the consumer journey. Different consumers rely on various decision rules when evaluating competing options. Some may prioritize price while others emphasize product features or brand reputation. Phones Corp can use these insights to segment its target audience effectively and customize marketing strategies accordingly. Post purchase evaluations are critical in shaping brand loyalty and future purchase behavior. Phones Corp must actively collect feedback, monitor customer satisfaction, and address any issues promptly to ensure a positive post purchase attitude. This helps in retaining existing customers and fostering repeat business. A successful CRM program encompasses various components that must be implemented to enhance customer engagement, satisfaction, and loyalty, ultimately leading to increased sales and profitability. Phones Corp can calculate customer value using different formulas such as customer lifetime value or CLV and average revenue per user. ARPU customer segmentation allows Phones Corp to categorize customers based on various dimensions such as demographics, behavior, and preferences. Data from the customer management cycle can inform acquisition strategies. By analyzing customer behavior and preferences, Phones Corp can identify potential customers with similar profiles and effectively target them through marketing campaigns. Phones Corp needs to differentiate between mass marketing and direct marketing approaches. The choice between these approaches depends on Phones Corp target audience and objectives. Okay, so now we're going to go through five of the actual questions on, so here's question one. We have consumer attitude models require the use of direct and inferred data to uncover the influences that drive overall product attitude. Why is understanding consumer attitudes crucial for Phones Corp's CRM program? So we have three possible answers. We have to create new mobile devices and services for their customers. B is to align mobile device marketing strategies with consumer preferences. And C is to reduce mobile device production costs and improve profits in all markets. And the answer here is B, to align mobile device marketing strategies with consumer preferences. So again, they want to focus really on what the consumer's needs are here and not maybe on a specific device or on production costs. They really want to focus on what is it that we need when we're trying to evaluate consumer attitudes and consumer preferences. And the learning outcome for this question is explain why it's important for consumer researchers to understand the nature and power of attitudes. All right, the next question. How does analyzing beliefs, feelings and behavioral intentions help Phones Corp tailor its marketing strategies? The possible answers here are A, it focuses on smartphone product development. B, it allows for a better understanding of consumer preferences. Or C, it helps in reducing marketing expenses and production costs. The answer here is B, it allows for a better understanding of consumer preferences. So when you're looking at things like analyzing their beliefs, their feelings, what behaviors they might have during the buying process, it is really important to look at those things when you're looking at consumer consumers, what they need, and what they want. And then the other two answers in here. So we've got it focuses on smartphone product development. It really doesn't. When you look at what are we looking at, we're looking at beliefs, we're looking at feelings, we're looking at behaviors. So we're not looking at marketing costs or production costs or product development. We're really trying to determine what are the consumer preferences. And the learning outcome for this one is assess why audience characteristics help to determine whether the nature of the source or the message itself will be relatively more effective. All right, then we have the next question. Why is the role of phones, corpse smartphone online reviews in the consumer decision making process? A, we have three possible answers. A is they dictate their online purchases. B is they can influence consumer attitudes and choices. Or C is they generally have no impact on consumer decisions. So when we're looking at online reviews can make a really big difference to a consumer. It may be one of the things that they check every time they want to see an overall rating. If it has a really low rating of maybe one or two stars out of five, they may not buy that product at all. So for B, it influences their attitudes. They're the consumer's attitudes and choices that's it's aligned. The question is aligned with that answer. It doesn't really dictate if we're looking at those the roles of those, it doesn't dictate their online purchases. It generally will have an impact on their consumer decision. And the learning outcome for this question is explain how our access to online sources is changing the way we decide what to buy. All right, next question. How can phones court benefit from understanding customer lifetime value or CLV and average revenue per user ARPU? So possible answers are A, they can improve their mobile device quality, B, they can prioritize high value mobile device customers or C, they can reduce their budget for mobile device marketing. And the answer here is B, they're prioritizing high value mobile device customers. So really when it comes down to determining, understanding who your customer lifetime value is and why, it is really important to look at what the customers want, what are the customers valuing, and then you can focus on those customers. It could be, and we don't know at this point, but it's possible that they might want to focus on their high end users that probably buy a new cell phone every year just to keep up with the latest. That might be the customer that they want to focus on. It could be the general user, if they find that the most of their customers are coming from average cell phones and maybe not the high end cell phones, then maybe they prioritize that. But it is one of those things where they have to determine who is the highest value of those and they can do that with the customer lifetime value. And then the learning outcome for this one is compare the different formulas for calculating customer value. And then the last question, so which components should phones, corp implement to enhance customer engagement and loyalty through their CRM program? And the possible answers here are A, mass marketing and product development, B, data collection and customer feedback analysis, or C, budget reductions and demographic data analysis. So the answer here is B, data collection and customer feedback analysis. So when you're trying to look at why are customers engaged or how can we, first you want to know why, but then you want to determine how can we enhance that. And why do we have loyal customers? What is it about our products or our customer service that people like? And those are the things that you would want to focus on in your research study. So we have, this one is data collection. It's what you're collecting. It's the feedback that you're getting. And then by understanding once you ask current customers that are loyal to you, once you ask them, it's using that data to enhance future customer engagement and loyalty. And the learning outcome for this one is explain how to use information from the customer management cycle to acquire better customers. All right. So in this presentation, we went through the case two overview about phones corporation. We went through five exam questions and now we are done. My name is Dr. Marcy Stone and I just wanted to say thanks for listening.