PROGRAMME TITLE

STUDENT N° :

20_PM_LI_CLA_S2_CCO_MKG_6161

UNDERSTANDING
CONSUMERS AND
MARKETS

FINAL EXAM - DATE

Professors: Chour M. & Denis E.

DURATION: 2h

INSTRUCTIONS:

 PLEASE ANSWER ON THIS DOCUMENT

Q1 (5p): For each of the following propositions, select the correct
answer(s). Note that for some questions, there can be several or no
good answers.

a) In the field of Consumer Behavior, when discussing the notion of motivation, we

can say that:

1. If a brand proposes the payment of its brand new computer through monthly
payments, it refers to the opportunity phase in the motivation/ability/opportunity
model. FAUX

2. There are four types of involvement: enduring, situational, cognitive or affective.

A consumer experiences only one form at a time. FAUX

3. Smoking typically leads to a conflict of needs. More specifically, this is a case

of avoidance-avoidance conflict. FAUX

b) In the field of Consumer Behavior, when discussing the decision-making of

consumers, we can say that:

1. The purchase of a specific product can represent a low-effort decision-making

for some consumers, and a high-effort decision-making for others. VRAI

2. When a brand congratulates you about your brand new purchase, it partially
aims to reduce the notion of dissonance. VRAI

3. The prospect theory posits that people are more willing to take risks when a
choice is framed as avoiding a loss rather than acquiring a gain. VRAI

c) In the field of Market Studies, when discussing the pros and cons of qualitative and
quantitative methods, we can say that:

1. In quantitative approaches, the saturation rate refers to the absence of new

relevant information through the data collection process. FAUX

2. For a researcher who uses both qualitative and quantitative methods, the order
of implementation has no influence on the conclusion, as long as they are
conducted apart from each other. FAUX

3. I want to have an understanding of the collective decision-making of holiday

destination among a group of friends. Qualitative approaches make sense.
VRAI

d) In the field of Market Studies, when discussing the nature of the collected data, we
can say that:

1. If a researcher contacts the government to have access to their recent survey

on political orientation, this is primary quantitative data. FAUX

2. On a quantitative perspective, internal validity and external validity refer to the

extent the research design is perceived relevant from an internal and external
perspectives. FAUX

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 3. If a researcher seeks to find which types of music better stimulates sales in a
store, the dependent variable could be the sales in euros. VRAI

e) In the field of Competitive Analysis, when the competition, we can say that:

1. The discovery of a new (and so far unknown) source of energy to power the
industry could impact all the dimensions of the PESTEL analysis. VRAI

2. The higher production costs of a company in comparison with competitors is a

real threat. FAUX

3. In line with Porter’s five forces, the high connectedness among the different
Apple products and the ease of use of those help the brand to limit the threat of
substitute products as it increases the transfer cost towards other brands. VRAI

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Q2 (5p): Below you will find the description of a research problem as
well as the market study that was implemented to address it. In the
blank space provided after, we ask you to criticize every steps of this Commenté [DE1]: Short note here : the point is to criticize
the research, not the strategic positioning of the brand !
research (both pros and cons).

A well-known brand of the gaming industry has finally decided to take the leap and to
launch its first games console. After some discussions, the executive management
decides that the brand should focus on the 5-10 year-olds since most competitors are
targeting older gamers (from 12 years old and older). A few months before the official
launch of the product on the market, the strategic department decides to conduct some
research among the targeted audience to perfect the positioning and avoid product
failure.
To seize the perception of the product by the future consumers, the researchers in
charge of the study first decide to conduct a hundred qualitative in-depth interviews
among children aged between seven and twelve years old. Those face-to-face Commenté [DE2]: 2 issues here: first you do not need 100
respondents in a quali (saturation rate reference will be
individual interviews last between 30 and 45 minutes and are recorded for further reached before). Second, the age range (7-12) does not fit
the target (5-10).
analysis. An agreement is found with several schools to conduct the interviews during
Commenté [DE3]: Face-to-face interviews with children
the first days of December, as it is a relatively quiet period in terms of pedagogical are always tricky and that for many reasons. Besides ethical
concerns, the research may influence responses
content. To motivate and recruit informants, researchers make announcements in (authority,…), then the interviews are too long for kids. The
use of projective techniques here would have been a plus.
those schools and propose a free version of their brand new gaming console before its
official launch. Commenté [DE4]: Strongly biased results since children
know they gonna get the gaming console, they will probably
The interviews covers different topics such as the informant’s perception of the product have a strong positive attitude. This is also reinforced by the
period (early December…) that is a very particular and not
design, the likelihood that s/he would recommend the product to a friend and of course, representative period of the year. Children are excited.
the kind of games s/he would like to play on the console. Since the strategic executive Commenté [DE5]: Questions are quiet sophisticated for
young children.
is not sure of the product price yet, children are also questioned about their willingness
to pay. Commenté [DE6]: Not relevant since they will not be the
buyers but, in the best case, prescribers and users.
Overall, results are promising and the researchers decide to validate them on a
Commenté [DE7]: Which is a very logic conclusion given
quantitative level. To this end, they send an online questionnaire to the consumers the numerous bias.

database of the brand. Commenté [DE8]: The quanti is not mandatory here,
because it does not add real value. Plus, we reach consumers
from the database of the brand, who are not the targets.
Note: provide your answer in the table below.

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Q3 (5p): Read the research design and answered the four questions.
The executive manager of a major supermarket chain decides to expand his garden
furniture offer by devoting an entire department in three very comparable test stores
located in Lille, Paris and Nice. An experiment is implemented in early January. Three
marketing promotional tools are tested for the flagship product: an electric barbecue.
The first promotional technique (1st test store in Lille) consists in large posters of the
product in different places of the store. The second technique (2 nd test store in Paris)
consists in tasting sessions three times a day. Finally, the third proposed method (3rd
store in Nice) consists in decoration around the barbecue stand.
1. What is/are the dependent variable(s)?
2. What is/are the independent variable(s)?
3. What are five probable extraneous variables?
4. Is internal or external validity favored here? Why?

1. The dependent variable is the barbecue sales (in units or in turnover).

2. The independent variable is the promotional technique (which can be considered as

an nominal variable; 3 modalities).

3. There can be a lot. In this case:

a. The fact that we are in January does not make it really relevant for barbecue
promotions The fact that we are comparing three stores in different locations
which means different customers in terms of income. The outside weather,
the size of the stores if they are not comparable, the salesperson (mood,
efficiency,…) the traffic in the shop…

4. External validity because we try to have real life conditions to the detriment of a
strong control over extraneous variables.

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Q4 (5p): Provide comments and explanations to the figure below.

Cost-based advantage Quality-based advantage

Large segments Cost leadership Differentiation

Focus strategy
Niche segments

Refer to the slides here. This is not about just explaining that those are the 3 main strategies.
You must explain in details what is cost leadership, what is top down and bottom up
differentiation, what is focus (what is a niche). Explaining what is a hybrid strategy is a plus.

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