Mkt Discussion Questions

Carol Cheng

MKT 3311

Page 186- Discussion Questions

3) For each of these products, chocolate bars and cereals, describe how marketers can apply their knowledge of the differential threshold to packaging, pricing, and promotional claims during periods of (a) rising ingredient and materials costs and (b) increasing competition.

Differential threshold is the minimal difference that can be detected between two similar stimuli. Manufacturers and marketers want to determine the differential threshold for their products for two reasons: 1) for negative changes, such as increases in prices and reductions in product size and quality, to not be discernible to the public and 2) for the product improvements (such as packaging, pricing, size, and price) to be apparent to consumers. The goal of marketers is to meet or exceed the consumer’s differential threshold. During periods of rising ingredient and materials costs, they will reduce the size of certain products or take away ingredients that are necessary. When there is increasing competition, they might want to redesign their packaging, lower their prices, and promote their product in new ways.

9) Discuss the roles of extrinsic and intrinsic cues in the perceived quality of: a) wines, b) restaurants, c) cell phones, d) graduate education.

A) Both extrinsic and intrinsic cues affect the perceived quality of wines. Intrinsic cues include color, taste, smell, and the vintage year of the wine. For consumers who cannot judge based on the intrinsic cues, they rely on extrinsic cues such as brand, price, where the wine is made, and how the bottle appears.

B) Both extrinsic and intrinsic cues apply to restaurants as well. Intrinsic cues include the colors and theme of the restaurant and the taste and smells of the types of foods being served. Extrinsic cues include its prices, menu, and service.

C) Cell phones also have extrinsic and intrinsic cues. Intrinsic cues include color, style, design, and the year it was...