Marketing Chapter 7 Pepsi Because Was Sweeter Than Coke Robert Hartley Marketing Mistakes And Successes

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subject Pages 9
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subject Authors Roger Kerin, Steven Hartley

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Chapter 07 - Marketing Research: From Customer Insights to Actions
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7. Have several students suggest their proposed scales for each of the three questions
8. Make these points about the three questions:
Question #1. A six-point scale could be as follows:
Dislike extremely Neutral Like very much
Question #2. This should have been easy. The chili spiciness scale is:
Question #3. Point out to the class that the time period covered must be
reasonableno later than six months; otherwise, respondents probably cannot
Marketing Lesson. It is critically important that marketing research questionnaires
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TRY YOUR HAND AT DESIGNING
A CHILI TASTE-TEST QUESTIONNAIRE HANDOUT
1. You have a respondent taste a new Howlin’ Coyote chili
______ ______ ______ ______ ______ ______
2. Suggest three names on a “spiciness scale” to evaluate the
new chili.
3. You are especially interested in reactions to consumers who
frequently eat chili. Compose a question to measure a
respondent’s frequency of consuming chili.
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IN-CLASS ACTIVITY (ICA) 7-4
Pepsi vs. Coke Taste Test
Learning Objectives. To have students run an experiment, collect data, and interpret the
results by replicating the “Pepsi Challenge” with Pepsi Cola and Coca-Cola.
Nature of the Activity. To have students replicate the historic Pepsi vs. Coke taste test.
Estimated Class Time and Teaching Suggestions. This activity takes about 20 minutes.
Depending on class size, this activity may take more time. It may be necessary to limit the
number of taste test participants if the class size is too large and if the amount of materials
required to serve all the students is excessive.
Materials Needed.
Copies for each student of the Pepsi vs. Coke Taste Test Survey.
Steps to Teach this ICA.
1. OPTIONAL: Bookmark the following websites on your classroom computer:
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2. Before class starts, set up two taste test stations at the front of the classroom that
3. At the start of class, select two teams of 1 to 2 students to manage each taste test
station. Recruit students who are responsible to perform this task. One team will put
4. Click the Internet icon to play the Pepsi vs. Coke YouTube Taste Test TV ad. [TRT =
0:30] Inform students that we are going to replicate the Pepsi Challenge and Coke
Taste Test experiments.”2
5. Give the following mini-lecture as you set up the experiment:
“During the late 1970s and early 1980s, Pepsi Cola conducted a nationwide
comparative taste test known as the ‘Pepsi Challenge.’ Pepsi set up stations on
college campuses and at other public arenas to have consumers compare the taste of
Pepsi to Coca-Cola (the original brand, now known as ‘Coca-Cola Classic’). This
‘blind’ taste test was conducted in the following manner:
a. Two small cups were labeled ‘B’ and ‘N.’ To prohibit taste-testers from
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In 1985, Coca-Cola decided to conduct its own Coke Taste Test when it compared a
reformulated, sweeter ‘New’ Coke with the original Coca-Cola formula. Based on
results obtained from blind taste tests run on almost 200,000 people:
Consumers preferred New Coke (55%) to ‘Old’ Coke (45%).
Thus, consumers preferred the taste of ‘new’ Coke over ‘old’ Coke, and more
importantly, over Pepsi. As astute marketers, Coca-Cola made the decision to pull
‘old’ Coke from the market and replace it with “new” Coke to reinvigorate the brand
and gain market share.
However, the results of this strategy were disastrous for Coca-Cola! During the taste
test, Coca-Cola had failed to assess the impact on the results if its customers/testers
6. To begin the taste test, have students come down by rows. Have students from odd
7. With a blindfold on, have each taste-tester take a sip from cup “B.” Then, have
him/her take a bite of a saltine cracker and a sip of water. Next, have her/him repeat
8. When the taste test is completed, have each student fill out and hand in the Pepsi vs.
Coke Taste Test Survey. When all students have completed the test and turned in
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10. Conclude this ICA with the following mini-lecture:
“Experiments like the one we just completed are useful because they allow marketers
to test one or more aspects of the marketing mix under strictly controlled conditions
Two controls were built into the Pepsi vs. Coke Taste Test experiment:
Randomly assigning letters to the brands. This is done to eliminate students
guessing which letter would be given a particular brand. However, this does not
11. Tabulate the results of the Pepsi vs. Coke Taste Test experiment. The simplest
analysis is based on tabulating the taste test results on a blank copy of the form and
calculating the percentages for each question with a calculator or Excel.
Tabulations of Questions 1 and 2 tell how the two brands compare with each other in
paired-comparison tests. An in-class discussion led by the instructor might initially
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PEPSI VS. COKE TASTE TEST SURVEY
STATION NUMBER: _______________
1. In comparing the tastes of brand “B” and brand “N”:
2. Based on your station number, which soft drink brand is “B” and which is “N”?
3. Are you a “Heavy”, “Medium”, “Light” or “Non” user or consumer of soft drinks?
4. Which is your preferred brand: “Pepsi,” “Coca-Cola,” or “None”?
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Connect Exercises
Exercise 1: Marketing Research Strategies at Frito-Lay
Activity Summary: In this case analysis, students are presented with a mini-case containing
Frito-Lay’s history and current situation in which sales of Lays potato chips are stagnant.
Students learn that Frito-Lay has gathered market research from focus groups and retail scanner
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Marketing Research Process, Secondary Data
Learning Objectives: LO 07-02 Describe the five-step marketing research approach that leads
to marketing actions.
LO 07-03 Explain how marketing uses secondary and primary data.
Follow-Up Activity: Instructors could use this activity as a launching point for a mini-marketing
research class project at the university. Working in groups, ask students to visit different
Exercise 2: Marketing Research Approach
Activity Summary: In this click and drag activity, students learn about the five-step marketing
research approach as utilized for Fisher Price’s toy, Rescue Heroes, in a short case format.
Students are provided with the five-step marketing research approach (define the problem,
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topic: Marketing Research Process
Learning Objectives: LO 07-02 Describe the five-step marketing research approach that leads
to marketing actions.
LO 07-03 Explain how marketing uses secondary and primary data.
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Chapter 07 - Marketing Research: From Customer Insights to Actions
AACSB: Analytical Thinking
Blooms: Apply
Difficulty Level: 2 Medium
Follow-Up Activity: Instructors could create an activity which asks students to extend the
Exercise 3: Carmex: Leveraging Facebook for Marketing Research
Activity Summary: In this 6-minute video, students learn the history of the Carmex lip balm
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Marketing Research Process, Primary Data
Learning Objectives: LO 07-02 Describe the five-step marketing research approach that leads
to marketing actions.
LO 07-05 Explain how data analytics and data mining lead to marketing
actions.
AACSB: Knowledge Application, Analytical Thinking
Blooms: Understand, Analyze
Difficulty Level: 2 Medium
Exercise 4: iSeeit! Video Case: Market Research Process
Activity Summary: In this straightforward whiteboard animation video, the five-step marketing
research process is explored in the context of the Coffee’s Collective’s decision whether or not to
Tagging (Topic, Learning Objectives, AACSB, Bloom’s, Difficulty)
Topics: Secondary Data, Marketing Research Process, Primary Data
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