Marketing Management _ HEC Paris

Which statement best reflects the principle behind “dual value creation” in sustainable marketing?. It implies that marketing should maximize consumer benefits while minimizing costs for the firm. It views marketing as reciprocal value exchange, where companies must create value for consumers to receive value back. It states that marketing must first create emotional value before functional value. It assumes that long-term brand equity is independent of customer value creation.

In the anthropomorphization studies on recycling, what mechanism explains why “Please recycle me” increases recycling behavior?. It increases cognitive load, making consumers more attentive. It generates emotional attachment, which elevates empathy and compliance. It reduces perceived ownership, promoting disposal. It reframes recycling as a costly moral obligation.

According to the lecture, why are high-end products considered more sustainable than mass-market products?. They use fewer raw materials due to premium production processes. Consumers tend to dispose of them faster, enabling efficient recycling. They are more durable and more likely to be reused, resold, and cared for. They rely on carbon-neutral supply chains by default.

Which of the following is NOT one of the 7 reasons why firms are becoming more mindful of society?. Increase in intangible asset value. Branding as a social phenomenon. Rise of non-governmental organizations. Stronger global competition.

Whether consumers perceive them as belonging to the same industry. Whether a price change in one affects the demand for the other. Whether consumers perceive them as belonging to the same industry. Whether products share similar physical attributes. Whether firms share overlapping supply chains.

Which level of competition includes all products that satisfy the same basic need, such as coffee, tea, and tap water?. Product competition. Segment competition. Budget competition. Generic competition.

According to the PESTEL framework, in which situation is PESTEL analysis particularly useful?. When industries are stable and predictable. When firms are optimizing short-term tactical decisions. When industries face external shocks or firms enter new categories/countries. When evaluating internal operational inefficiencies.

Which of the following is a key limitation of Porter’s Five Forces?. It ignores the power of suppliers. It cannot assess customer preferences. It does not explicitly address forces such as globalization or digitization. It assumes all competitors are rational.

Which of the following is counted as an internal data category in micro-environment analysis?. General market growth rate. Supplier power. Customer satisfaction & loyalty metrics. PESTEL trends.

Which of the following best defines objectivity as a requirement of good measurement in market research?. Results remain constant when repeated under similar conditions. Results are independent of the researcher conducting the study. Results measure what they are intended to measure. Results are resistant to systematic error.

Why are experiments considered the only method capable of proving causality?. They eliminate participant biases. They control random error through large samples. They rule out reverse causality and omitted variable bias via randomization. They imitate real-world behavior perfectly.

In Session 4, what is the main advantage of synthetic data (AI-generated data) for marketing research according to the lecture?. It always yields more accurate results than real consumer data. It allows instant answers from simulated consumers without field collection. It eliminates the need for statistical analysis. It ensures perfect representativeness of all market segments.

What is the primary challenge of online surveys, according to the course?. Excessively high cost. Interviewer bias. Uncontrolled sample quality & self-selection bias. Too much structure.

What is the goal of the Laddering Technique in depth interviews?. Identify correlations between functional attributes. Reveal deep, psychological motives linking product attributes to personal values. Measure statistical preferences for product features. Classify consumers into attitudinal clusters.

Why can focus groups be misused, according to the illustration?. Managers often overinterpret anecdotal comments as representative insights. They force respondents into quantitative predictions. They eliminate moderator influence. They rely exclusively on mechanical observation.

AI-assisted data analysis, as defined in the lecture, primarily differs from “full AI analysis” because: It delegates both data storage and model selection entirely to the AI. It keeps data and execution within the user’s environment with full visibility of the code. It requires no programming knowledge from the user. It always produces more accurate results than traditional statistics.

Which of the following is not listed as a risk of relying on “full AI analysis”?. No audit trail of analytical steps. Potential data breaches. Lack of control over methods used. Higher computational cost than AI-assisted analysis.

According to the prompt-engineering best practices presented in Session 5, which sequence best reflects the five steps to generate R code with GenAI?. Data description → role definition → method choice → debugging → formatting. Role & goal → detailed data description → specify method & request code → set format/clarity → additional requests. Specify method → upload data → ask for explanation → request visualization → export report. Role & goal → upload code → ask for debugging → ask for comments → export to Colab.

Which of the following is the main recommended use of GenAI when doing data analysis according to the slides?. To replace human judgment in selecting statistical models. To automatically upload and process any corporate dataset in the chat interface. To generate, explain, convert and debug code that you then run yourself. To tune hyperparameters of deep learning models without human oversight.

Why is Google Colab highlighted as particularly suitable for GenAI-assisted work in this course?. It allows direct execution of natural language prompts without code. It is a cloud IDE with built-in AI assistance, easy data import and no local setup. It supports only R, preventing language confusion. It guarantees permanent package installation across all sessions.

In the “Advertising Budget Optimization” exercise, which analytical sequence best matches the one suggested in the slides?. Regression → correlation → visualization. Visualization → correlation → regression. Correlation → visualization → regression and interpretation. Cluster analysis → PCA → regression.

Which of the following sets of properties corresponds to the checklist for good segmentation?. Overlapping, profitable, fast-growing, and price-sensitive. Mutually exclusive & collectively exhaustive, measurable, stable, addressable, behavior-fit, profitable. Based on demographics, large, easy to reach, and price-oriented. Global, digital, innovative, environmentally friendly.

The “pen study” example is used to illustrate which key segmentation insight?. The superiority of behavioral segmentation over demographic segmentation. That adding multiple features can dilute perceived value if they do not match core needs. That higher price always signals higher quality. That emotional benefits dominate rational benefits in all product categories.

Why is purely demographic segmentation (e.g., age, income) criticized using the Prince Charles vs. Ozzy Osbourne slide?. Because demographics are impossible to measure accurately. Because people with identical demographics can have radically different lifestyles and needs. Because demographics are only relevant in B2B markets. Because psychographic variables are always more profitable.

Which segmentation basis is most directly aligned with the requirement “first, segmentation must be based on customers’ rational and emotional needs, behaviors and lifestyles”?. Geographic segmentation. Demographic segmentation. Psychographic and benefit-based segmentation. Firmographic segmentation.

What is the main message of the slide “Need-based segmentation via different brands” (cat food example)?. It is inefficient for one company to manage more than one brand. Each brand can be positioned to serve a distinct underlying need for the same basic product category. Pet food brands should always compete on price alone. Segmentation only works in B2B, not B2C.

Which statement best captures the warning about “personas and the wishful-thinking hipster problem”?. Personas are useless and should be avoided. Personas should focus exclusively on socio-economic variables. Personas must be grounded in data and insights, not in marketers’ stereotypes or aspirational images. Personas should only be created for digital products.

In B2B segmentation, what is the two-step approach recommended in Session 6?. First demographic segmentation, then geographic segmentation. First segmentation by product, then by price. First segmentation between groups (firms), then segmentation within groups (buying centers). First CLV analysis, then cluster analysis.

Which of the following best characterizes the role of the Gatekeeper in a buying center?. Decides which supplier is chosen. Uses the product or service daily. Influences which information enters and circulates within the buying center. Negotiates contractual terms and signs the deal.

The Formaplast “sandwich pipe” example primarily demonstrates which targeting pitfall?. Overestimating technical product superiority while ignoring economic consequences for key intermediaries. Failing to invest enough in advertising. Using demographic instead of geographic segmentation. Misinterpreting PESTEL trends.

Which statement best reflects the dual perspective of value in targeting decisions (“Value for whom?” slide)?. Customer value is purely financial, while customer equity is purely emotional. Customer value refers to how much value the supplier creates for the customer, while customer equity refers to how valuable the customer is for the supplier. Customer value and customer equity are interchangeable terms. Customer equity only matters in B2C markets.

In the customer valuation overview matrix (past/present vs. forward-oriented; one-dimensional vs. multidimensional), which method is forward-oriented and multidimensional?. ABC analysis. Simple sales ranking. Customer Lifetime Value (CLV). Customer satisfaction survey.

Which of the following is not a requirement mentioned for a good scoring model in customer evaluation?. Criteria should be measurable. Criteria should be independent. Criteria should be relevant and complete. Criteria should be optimized to maximize the number of A-customers.

Compared to ABC analysis, what is the main advantage of a scoring model in targeting?. It completely eliminates subjectivity. It incorporates multiple weighted criteria, not just sales or contribution margin. It requires no data. It only focuses on non-monetary factors.

In the loyalty-profit figure (Reichheld and Sasser), why is forward orientation emphasized in customer valuation?. Because profits from new customers are always higher than from existing ones. Because many profit components (cross-buying, WOM, lower handling costs) materialize over time, not instantly. Because past data are usually unreliable. Because discounts only occur in the first period.

In the customer portfolio matrix (customer attractiveness × position towards the customer), which quadrant typically corresponds to “Stars”?. Low attractiveness, low position. High attractiveness, low position. Low attractiveness, high position. High attractiveness, high position.

What is the recommended strategic focus for Iron customers in the portfolio framework?. Heavy investment and key account management. “Big step or out” decision. Reduce costs, increase prices, and consider indirect sales channels. Terminate the relationship immediately.

In the buying-center personality typology (Teacher, Go-Getter, Skeptic, Guide, Climber, Friend, Blocker), whom should salespeople prioritize to drive organizational change?. Friends and Climbers (“talkers”). Teachers and Go-Getters (“mobilizers”). Guides and Blockers. Skeptics and Friends only.

According to the “Identification of Mobilizers” slide, which combination of answers most likely indicates a Mobilizer rather than a Talker?. No healthy skepticism, self-focused, shares little useful information. Healthy skepticism, interested in greater organizational good, shares useful information. Highly agreeable, avoids conflict, focuses on personal rewards. Stability-oriented, skeptical of all change, rarely helps vendors.

Which statement correctly explains why variables must be standardized before clustering?. To avoid correlations between variables. To prevent variables with large numeric ranges from dominating distance calculations. To force k-means to converge more quickly. To make dendrograms visually interpretable.

What is the main structural difference between hierarchical clustering and k-means?. Hierarchical uses centroids while k-means uses distances only. Hierarchical is bottom-up while k-means is top-down. K-means allows multi-level subsegments while hierarchical does not. K-means always produces dendrograms.

Why is single linkage rarely recommended in marketing segmentation?. It assumes clusters must be spherical. It creates “long thin” chains that do not reflect real segment structures. It cannot handle categorical variables. It never converges to a stable cluster solution.

Which linkage method minimizes the increase in within-cluster variance when merging clusters?. Single linkage. Complete linkage. Average linkage. Ward’s method.

When should factor scores be used instead of original survey variables?. When variables are mostly binary. When you want to ensure variables have identical means. When variables are highly correlated and represent latent constructs. When clustering very large datasets.

Why should demographics not be used as active clustering variables in psychographic segmentation?. Demographics are too stable and distort cluster boundaries. They produce too many clusters. They violate the elbow method assumptions. They should be descriptors, not drivers, of psychographic differences.

What does homogeneity within clusters mean in technical terms?. All variables must be normally distributed. Distances among members of a cluster must be relatively small. Clusters must all be the same size. Variables must be uncorrelated within clusters.

What is the economic meaning of CLV as defined in the session?. Total historical margin achieved by a customer. The discounted value of all future net cash flows from the customer. A prediction of customer churn. The revenue generated by a customer minus acquisition costs.

According to the margin-multiple formula, which parameter increases CLV the most?. Decreasing margin m. Increasing discount rate i. Increasing retention rate r. Increasing acquisition cost.

Why should marketing expenses not be subtracted when computing margin m in the example?. Marketing spend is unpredictable. Marketing spend is assumed sunk — used for acquisition, not retention. Marketing spend is included in discount rate. Marketing spend only applies to non-contractual settings.

In the retention-rate-over-time example, why does the aggregate retention rise even though segment retention rates stay constant?. The company reduced churn through promotions. The high-retention segment becomes a larger share of remaining customers each year. New customers dilute retention. Low-retention customers receive more marketing.

Why is CLV estimation harder in a non-contractual setting?. Customers do not pay full price. The firm cannot observe churn directly; absence of purchase ≠ termination. Discounting is impossible. Margins cannot be computed.

What is the key assumption behind the cohort-and-incubate method?. Future customers will behave like past customers acquired at the same time. Purchase amounts follow a normal distribution. All customers have identical retention. CAC does not change over time.

Which managerial insight comes from the Bean & Blend case?. First purchase amount is a poor predictor of customer profitability. Catalogs should be sent to all past customers to maximize retention. CLV can identify low-value customers early, reducing unnecessary mailing costs. CLV is only useful for subscription businesses.

Why does acquisition cost (CAC) sometimes need to be subtracted from CLV?. To estimate short-term customer profitability. Because CAC is a recurring cost. Because CAC occurs before any margin is generated and must be recovered. To adjust for inflation.

In non-contractual settings, how do we infer retention behavior?. By observing customer churn reports. By modeling interpurchase times and purchase probabilities from past data. By sending surveys. By assuming constant churn.

Why is the first order size highly predictive of CLV in many retail businesses?. Large orders imply lower CPA. Early high spending signals higher underlying preference and future purchase frequency. Large orders guarantee subscription. Because large-order customers receive more catalogs.

Which statement best describes the purpose of the Kano Model?. To rank products by willingness to pay. To detect latent needs based exclusively on sales data. To classify customer needs into categories with different impacts on satisfaction. To evaluate how much customers like a feature relative to competitors.

In the Kano “evaluation method,” what is the biggest methodological challenge?. Respondents often skip the functional question. Interpreting the 25 possible answer combinations reliably. Ensuring all features are positively correlated. High cost of running regression models afterward.

According to the regression-based Kano analysis, what functional form corresponds to a “Basic” factor?. Linear (y = a + b·x). Convex upward (y = a + b·x²). Concave downward (y = a + b/x). Logistic (S-curve).

What is the purpose of the Laddering Technique in positioning?. To quantify brand equity. To link product attributes to higher-order personal needs and values. To cluster customers based on needs. To simulate competitive responses.

Which of the following is NOT listed as a reliable way to identify consumer needs in Session 12?. Quantitative and qualitative data. Ethnography / observation. Consumer psychology knowledge. Real-time competitive pricing scraping.

Which level is not required for positioning but provides differentiation if used?. Emotional benefits. Social benefits. Structural benefits. Financial benefits.

What is the central warning of Session 12 regarding positioning?. Competitors usually react immediately. Consumers’ perceptions are sticky and hard to change. Perceptual maps always show firm-intended positioning. Positioning should ignore competitor offerings.

What distinguishes MDS from clustering?. MDS segments customers; clustering maps brands. They use identical algorithms with different outputs. MDS discovers underlying dimensions, clustering forms groups. MDS requires metric data whereas clustering does not.

Which similarity measurement method involves n(n–1)/2 comparisons?. Rating method. Anchor method. Rank Order procedure. Continuous-choice method.

What is the key advantage of the Anchor Method?. No ties allowed. Reduces number of comparisons by fixing one anchor. Produces metric dissimilarities. Captures absolute distances.

In non-metric MDS, what must the configuration preserve?. Exact magnitudes of distances. Rank order of dissimilarities. Absolute centroids of clusters. Respondent-level error terms.

Which STRESS1 value indicates a good fit?. 0.25. 0.12. 0.08. 0.18.

Why do MDS maps require interpretation even after computation?. Dimensions are not known a priori and must be labeled post-hoc. Distances are arbitrary. STRESS always needs manual tuning. MDS outputs require regression modeling to interpret.

Which statement about non-metric MDS is correct?. It assumes dissimilarities are metric. STRESS increases fit quality. It accounts for similarity data that may not be metric. Dimensions must be labeled before running the algorithm.

Why is traditional MDS unsuitable for markets with 1,000+ products?. STRESS cannot be computed for large datasets. Pairwise similarity collection becomes infeasible. K-means fails on similarity data. Consumers cannot process that many attributes.

In the new approach, what does search frequency proxy?. Competition. Value. Market Share. Perceived Quality.

What defines two products as competitors under Ringel & Skiera’s approach?. They share the same price range. They co-occur frequently in consumers' consideration sets. They have similar technical specifications. Their brands are substitutable psychologically.

What is competitive asymmetry according to the lecture?. One product is always cheaper than the other. Two products are identical substitutes. Elasticities differ across consumers. A competes strongly with B, but B barely competes with A.

What is the main advantage of DRMABS over traditional mapping techniques?. It requires no data.It requires no data. It produces the lowest STRESS values. It reveals asymmetric relationships and visualizes many products effectively. It forces similarity to be metric.

Why must individual similarity data be aggregated only within segments?. STRESS becomes undefined otherwise. Different segments interpret similarity differently. MDS cannot handle mixed data types. Segment-level data removes the need for labeling dimensions.