32. In relation to the Elaboration Likelihood Model, Professor Kahn discussed the peripheral cues that people use to accept or reject messages. Which of the following is NOT one of the peripheral cues that she mentioned? Authority Social Proof Consistency Liking Classic conditioning O Reciprocity Logic Scarcity 33. If a company has used a celebrity endorsement in an "imperative mode," what message is the celebrity conveying? "Everyone uses this product." "You should use this product." "I use this product." "I endorse this product." 34. In her lecture, Professor Kahn discussed how difficult it was for Oldsmobile to reposition its automobiles among younger consumers. Perhaps they could have tried to evolve the Oldsmobile brand more gradually. All of the following are ways to evolve brands more gradually except for: Slogans, which are easier to change than names. New products, which can be true to the core identity but add modern, innovative elements. Update the brand name to reflect evolving identities. Symbols: updating symbols can provide updates without changing meanings.. Announcements: explaining to your customers that the brand will now be focusing on a different customer segment. 35. How do you calculate Price Elasticity? d By dividing the percentage of Change in Demand by the percentage of Change in Price By dividing the percentage of Change in Price by the percentage of Change in Demand By dividing the percentage of Change in Price by absolute manufacturing costs By dividing the percentage of Change in Demand by gross profits 36. What are customer-centric companies required to do? Be willing and able to change their organizational design and performance metrics to focus on creating long-run customer value. Changing incentive structures is not necessary. No significant organizational changes are necessary: they just have to adopt a customer-centric approach. Be willing and able to change their performance metrics and incentive structures to focus on creating long-run customer value. Changing organizational design is not necessary. Be willing and able to change their organizational design, performance metrics and incentive structures to focus on creating long-run customer value 37. What do the acronyms of the AIDA Model stand for? Attention, Interest, Design, Action Attention, Interest, Desire, Action Action, Imagination, Design, Attention Analysis, Implementation, Design, Achievement 38. What is the definition of the Endowment Effect? Consumers are more likely to purchase a product priced at $19.99 than $20 Buyers compare the current price with a reference price Consumers react to prices in percentage terms as opposed to absolutes A sense of ownership increases a customer's willingness to pay 39. Understanding the process of perception is critical to understanding branding because: O All answers are correct Perceptions affect subsequent behavior Brand names change people's perceptions of products regardless of the quality of the product The proximity bias means that people assume that things that are close to each other must belong together O No answers are correct Similarity bias means people assume that things that look alike must have the same quality 40. Which of the following factors does NOT reduce price sensitivity? Separation between the buyer and the payer Ease of comparison Separation in time between the point of purchase and the time of payment When the user cannot differentiate between differences in quality