Question

CHAPTER 4 Techniques for Understanding Consumer Demand and Behavior 109 t effect. ed that managers be familiar with both approaches because each provides useful ues need to realize that marketing analysis builkds on the fundamental eco- of demand and elasticity. Marketers take these basie economie n Table 3.7 in goies and develop analyses of brand differentiation, market segmentation, and dct pricing, While some of the formal statistical approaches used by econ nu of the public leat is to estimate demand relationships may appear abstract and academie to ofliasers and marketers, these approaches may do a better job of determining the roanagers different variables on demand, while holding all else constant. This infor. efleon is useful to both academic researchers attempting to improve the methods atiom and estimation and managers needing to make decisions about advertising the r how to counter the strategie moves of a competitor these issues with our demand and next chapter, we begin our discussion of production and cost. We then inte- consumer analysis to examine the competitive roducts actu- al consumer graredies and pricing policies of firms operating in different market environments ls, it would entry to theKey he weights adjusted R statistic, p.96 coefficient of determination direct consumer surveys, p. 87 expert opinion,p.87 multiple regression panel data, p. 92 simple regression analysis, p.94 95 targeted marketing. p. 89 test marketing, p. 88 time-series data, p.92 t-test, p. 95 t the most (R*).p.96 confidence interval, p. 95 conjoint analysis, p. 88 cross-sectional data, p. 92 degrees of freedom, p. 96 vailability price experiments, p. 88 Exercises like cotton candy or bourbon and others having ints of smokiness or a slight taste of wet card- board. Wendy's narrowed the vanillas to two vari- eties and brought more than 100 consumer testers into stark white tasting booths at its head- quarters. The testers were told to take at least three bites of each sample before deciding which they preferred. They picked the sample with the stronger cotton candy flavoring. But a few said they didn't like the idea at all. "Vanilla is just not Wendy's," one tester wrote after sampling it. Since Wendy's launched the vanilla Frosty in July Frosty sales have increased 25%. (Based on: Janet Adamy, "Why No. 3 Wendy's Finds Vanilla So Exciting," Wall Street Journal, April 6, 2007.) Technical Questions I. In each of the following examples, describe how the information given about consumer demand helped managers develop the appropriate strate- gies to increase profitability and how this informa- hat trade tion was obtained: a. For nearly four decades, Wendy's International Inc. served only one kind of Frosty: a vanilla-and- chocolate hybrid thicker than a milk shake yet creamier than most fast-food ice cream. To con- nect with younger diners, Wendy's is now revamping the Frosty, along with the rest of its menu by adding new flavors that come with wide straws and bubble-shaped tops. Research has shown that the Prosty is the No. 4 reason people go out of their way to visit Wendy's. The company polled customers to ask which new flavors, including vanilla, cherry and strawberry, they liked best. Although Wendy's settled on vanilla, picking the exact type of vanilla flavor took months. Suppliers brought Wendy's 100 different varieties of vanilla flavoring with some tasting nation eting timat- b. The Oreo has long been the top-selling cookie in the U.S. market. But Kraft Foods Inc. had to rein- vent the Oreo to make it sell well in China given that the Chinese were not big cookie eaters. Kraft learned that traditional Oreos were too sweet for Chinese tastes and that the packages of 14 Oreos priced at 72 cents were too expensive. met- ve The company developed 20 prototypes of

Hello, I need question 1 sections a,b,and c. Please make around a page long.

Answer 1

a. The information on the consumer demand of frosty being the number 4 reason for people to visit Wendy's brings attention of the managers to this product which was only offered in one hybrid flavour of vanilla and chocolate till date. This information has been obtained from a research and has helped Wendy's decide on bringing new flavours to their highly demanded Frosties. The new introduction of Vanilla flavour which has come into the market with consumer's taste approval has ultimately also led to an increase in the sales by 25%.

b. Kraft Foods Inc which is a major cookie producer wanted to expand its presence in the Chinese market. They learnt few things about the Chinese consumers and their taste before launching their cookie in the market such as their taste for less sugar and the high prices for the cookies. The company utilised this information to introduce a prototype appropriate for the Chinese market. The different climatic conditions of the north and south were also to be kept in mind before launching the final product to make sure that the product stays in its original form. The market information on consumer's thrust for milk also helped the cookie company market their product in a way which reflects the usage of milk in the production of cookies. All these consumer related information helped Kraft Foods launch their cookies in the chines market and they received many applications for the apprentice program hosed at several Chinese universities,

c. Fisher Price which produced learning toys for kids is introducing their products in newer markets such as Brazil, Russia and Poland. While incorporating a Turkish poem in one of their storybook products, based on the consumer information, they changed the animal character from pigs to cats because it could hurt the sentiments of the Muslim country. Also in the Chinese market, they wanted to perfect the Mandarin sound to connect with the Mandarin speaking consumers