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What is the gist of the Gravity Decision Spectrum? - correct answer Trivial and deep decisions require a different approach to segmentation! The spectrum shows us what's at stake for the customer. Explain segmentation for items at the shallow end of the gravity of decision spectrum - correc...

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Voorbeeld van de inhoud

Past Exam Questions

What is the gist of the Gravity Decision Spectrum? - correct answer Trivial and deep decisions require
a different approach to segmentation! The spectrum shows us what's at stake for the customer.



Explain segmentation for items at the shallow end of the gravity of decision spectrum - correct answer
Segmentations for items such as toiletries and snacks try to measure things like the price sensitivity,
habits, and impulsiveness of the target consumer



Explain segmentation for items at the deepest end of the gravity of decision spectrum - correct answer
At the deepest end, consumers' emotional investment is great, and their core values are engaged. Those
values are often in conflict with market values, and segmentations need to expose these tensions.



Explain segmentation for items at the middle of the gravity of decision spectrum - correct answer
Segmentations for big-ticket purchases like cars and electronic devices, in the middle of the spectrum,
test how concerned consumers are about quality, design, complexity, and the status a product might
confer.



Briefly explain the best alternative to a negotiated agreement (BATNA) - correct answer In
negotiation theory, the best alternative to a negotiated agreement or BATNA is the most advantageous
alternative course of action a party can take if negotiations fail and an agreement cannot be reached.
BATNA is the key focus and the driving force behind a successful negotiator.



Briefly explain the zone of possible agreement (ZOPA) - correct answer The zone of possible
agreement (ZOPA), or bargaining range, describes the intellectual zone in sales and negotiations
between two parties where an agreement can be met which both parties can agree to. Within this zone,
an agreement is possible. Outside the zone no amount of negotiation will yield an agreement.



Briefly summarize Case

Exercise Session 2 (the Renotcin case) and discuss the insights on bargaining that you learned from -
correct answer Summary:

There is a new injectable pain medication for use by patients recovering from bone surgery. Half the
class is assigned the role of hospital representative, and the other half is assigned the role of WorldMed
representative (a drug company). The aim of the exercise is for the two parties to negotiate price. For

, WorldMed, the minimum they can sell it for is 23K without providing education on the use of the drug,
and 30K with education. For the hospital, the minimum they can pay is 22K without education, and 42K
with education.



Insights:

1. Strategy for effective negotiation: delegate different roles to team members-->divide between
observers and talkers

2. Choose between anchoring/first shot vs. keeping your cards/staying silent

3. The norm is for the seller to make the first move



Lesson learned: never actually tell the seller what your real max budget is; give them a much lower
number



What is the purpose of Rogers' 5 Factors? - correct answer They are five characteristics that influence
a person's decision to adopt or reject innovation



What are Rogers' 5 Factors? - correct answer 1. Relative Advantage - How improved an innovation is
over the previous generation.



2. Compatibility - In short, how hard is it to integrate this into my daily life?



3. Complexity - If the innovation is too difficult to use an individual will not likely adopt it.



4. Trialability - How easily an innovation may be experimented with as it is being adopted. Think of the
Apple retail store experience which is specifically designed to get users interacting with all the devices in
a casual way.



5. Observability - The extent that an innovation is visible to others. An innovation that is more visible will
drive communication among that person's peers and personal networks and will in turn create more
positive or negative reactions.

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