 Hi, welcome. My name is Dr. Marcy Stone and this is the practice exam review for case one of your consumer behavior course. Alright, so we're going to get into a little bit of an overview of this case study. So we have a company called Phones. It's an international manufacturer and distributor of mobile devices and related technology. They are headquartered in Seoul, South Korea as part of the Gingham 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. So we have the Americas, we have Europe and the Commonwealth of the independent states or CIS, Middle East and Africa, and then we have Asia excluding China and then we have China. So 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 with the last 15 years at Phones Corp. Alright, so now we're going to talk a little bit about product lines. So Phones Corp manufactures and sells in four distinct product lines as follows. So we have premium smartphones. This consists of three products. They have their base, their plus and ultra. These phones feature larger screens, faster processes and advanced cameras. Then we have the standard smartphones. This consists of three less advanced smartphones with smaller screens, slower processors and basic cameras. Then we have tablets and computing devices. So this includes eight inch or larger tablets with and without keyboards. Then we have wearables and other devices and this consists of watches that link to the smartphones and earbuds and headphones. Dated or new versions of each product are released yearly during a major launch event that's covered by the press and industry analysts. Then we have distribution. So products are mostly sold in their company owned stores which include sales, tech support and training services. They're 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 ground shipping, standard ground shipping, although they also offer two day, one day and same day delivery when needed. Despite their market 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 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 stores. 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 presenting 11%. Each of the following cases will be based on this overview. They will assist you. They will assess your ability to apply the concepts of this course to the case of phone court. All right, so that's our overview of the case. Now we have the case study. So we have to sustain and further expand its success. A phone corp CEO recognizes the importance of better understanding consumer behavior and aligning marketing efforts with customer needs and services and desires. Phone corp recognizes that consumer behavior is not a single event, but a dynamic process involving multiple stages. Understanding this process enables phones corp to engage customers effectively at each stage of their journey. Phone corp's products, including premium and standard smartphones, tablets, wearables and more play a significant role in helping consumers define their identities. Phone corp's should tailor marketing messages to align with these identity related motivations. Phone corp's serves a diverse customer base and it's crucial to recognize the unique, wants, needs and desires of different segments. Phone corp's believes it needs to effectively segment its marketing strategies to cater to those varying preferences. The design of a product, such as larger screens and advanced cameras in premium smartphones, significantly influence consumer preferences and purchase decisions. Phone corp's must continually innovate and stay attuned to evolving design trends to remain competitive in the market. Understanding how consumers learn about phones corp's products and services is vital. Whether through an online search, research, recommendations or in-store experiences, phones corp must optimize these touch points to provide accurate information and effectively engage potential customers. Phone corp research indicates that positive experiences with their products can lead to generalized positive associations with the brand. Consistency and quality user experience and customer service ensures that these associations translate into brand loyalty and advocacy. Phone corp can benefit from understanding the differences between classical and instrumental conditioning. Phones can strategically employ both techniques to shape consumer behavior. Phone corp's diverse product lines cater to a wide range of consumer needs from functionality to status symbols. Recognizing and addressing these various needs is essential for ensuring product relevance and consumer satisfaction. Consumer involvement varies depending on the product, marketing message and purchase situation. Phones corp would like to tailor its marketing and sales strategies based on the consumer's degree of involvement. Consumers' self-concept strongly influences their behavior and purchasing decisions. Phones corp should understand that products play a pivotal role in defining consumers' self-concept. Phones corp also understands that consumers' lifestyle and psychographics are critical factors in shaping marketing strategies. By comprehensive understanding consumer behavior in these areas, Phones corp can strategically align its marketing efforts with the diverse needs and desires of its customers. This understanding will empower Phones corp to refine its product design, messaging and marketing strategies to maintain and strengthen its position as a global leader in the marketing, in the mobile device industry. Ultimately Phones corp can continue to provide products that resonate with customers contributing to long-term success and brand loyalty. So now we're going to look at five actual questions from the practice exam. So here's the first one. So Phones corp's customers demonstrate their brand loyalty by regularly upgrading their phones and they demonstrate advocacy by telling others about their phone purchases. How can Phones corp maintain brand loyalty and advocacy among its customers? So we have three potential answers. A is by providing great customer service regardless of phone quality. B is by ensuring consistency in quality user experience in customer service. And C is by focusing on advertising and offering large price cuts across all product lines. So the answer here is B by ensuring consistency in quality user experience in customer service. So they want to make sure that they are focused on the things that are most important to the customers and not on things that may not be all that important to a customer. So from a customer's perspective, when you're looking at advertising and maybe some price cuts across those product lines, they're not going to be focused on that, but maybe more focused on quality, their experience, and how good is the customer service of this company. And so they're more focused on that. The learning outcome for this question is explain how consumer behavior is a process. Here's the next question. By carrying multiple product lines and multiple products within each line, how does this help Phones corp maintain its position as a global leader in the mobile device industry? So we have three possible answers. So A is by recognizing and addressing varying consumer needs. B is by reducing the number of smartphone products they carry. And C is by adding a mid-tier mobile device line with limited features. And the answer here is A. So recognizing and addressing those various consumer needs. So again, they're coming back to the customer is the most important. What is it that they need and how can we fulfill those needs? By reducing the number of smartphone products they carry, that isn't going to help the customer. Adding a mid-tier mobile device line with limited features wouldn't help the customer either. So they're really focused on looking at what are their needs and what can we do to make sure that we're solving them. And the learning outcome for this question is explain why the design of a product is a key driver of its success or failure. All right, the next question. Phones corp is reviewing a new company branding campaign. How can this new campaign shape consumer behavior using classical conditioning? So we have three possible answers. A is by offering smartphone discounts and free trade-ins. B is by emphasizing smartphone productivity or product utility and benefits. And then C is by associating smartphones with positive emotions or experiences. And the answer is C. So they're really focused on those positive emotions or experiences. So this is part of that emotional branding that we talked about in the course. And it really is important when we're looking at how do we get the consumer to connect with this product or this brand. And by focusing on those positive emotions, maybe that wow factor the first time they pull it out of the box. Or maybe focusing on the emotional. There's a bunch of different ways that they can use that marketing to focus on that emotional branding or that emotional connection that they might be able to get with the consumer. And then the learning outcome for this one is compare the differences between the classical and instrumental conditioning. All right, next question. As phones corp is updating their marketing strategy to be more focused on consumer behavior. What should it consider when tailoring marketing and sales strategies? So we have a, only consumer demographics. B, the mobile devices price and features. Or C, the consumers degree of involvement in their purchase. And the answer here is C, the consumers degree of involvement in their purchase. So this is something that when they're putting together their marketing, their sales strategies, they really want to consider how involved the consumer would be in that purchase. So are they comparing other devices? Are they looking at features and benefits? Are they choosing this brand because of those features and benefits? By only focusing on demographics, they may be not focused on the overall target market. And then also by looking at the devices feature, the mobile devices price and features and then focusing their advertising on that. Again, it doesn't focus on the needs of the customer. So yeah. Alright, then we have the learning outcome for this question. And it's evaluate how the way we assess and choose a product depends upon our degree of involvement with the product, the marketing message and or the purchase situation. Alright, and this is the last question. So we have since psychographic data is usually developed from a variety of non quantitative data. How can phones corp effectively use psychographics to create tailored marketing messages for its products? So our possible answers are A, by focusing on demographics and phone choices. B, by understanding consumer values, attitudes and interests. Or C, by offering similar messages to consumers based on usage. And the answer here is B, by understanding consumer values, attitudes and interests. Hopefully you're seeing the theme here in these questions. This company is very focused on the consumer, their wants, their needs, their attitudes. And this one specifically would be to create marketing that's based on those products. And so by using psychographics, they can better understand those consumer needs. And then if you're focused on demographics and phone choices, then again you're not focused on consumer values or consumer needs. And then the same thing is by offering similar messages based on usage. Again, you're not focused on consumer needs or values if you were to choose that answer. So the learning outcome for this question is explain how consumers' lifestyles are key to developing marketing strategies. Alright, so in this presentation we went over the case one overview. So we looked at a review of the five exam questions and now we're summarizing. So I just wanted to say thank you for listening. My name is Dr. Marcy Stone.