Q1.

Answer: According to book “Principles of Marketing by Philip Kotler and Gary Armstrong”, there are
three research approaches are discussed for primary data collection.
1. Observational Research:
This method is used to gather primary data by observing situation, actions, and relevant people
(Kotler, & Armstrong, 2018). By observing customers Lumosity can get consumers’ insights, which
they can’t get by interviewing them or by asking directly questions. Now a days, marketers use
ethnographic research. Ethnographic research, means marketers and observers interact with customers
in their natural environment (Kotler, & Armstrong, 2018). Because when customers are in their
natural environment, they react normally. With the help of observation research marketers can know
what consumers thing about product, even what consumers say about product/service. This would
help marketers of Lumosity to get lot of data about their games. For example, they can observe how
consumers play games, and why they play these games and what is their reaction when they play
those games? Does those games increase their cognitive abilities or help to prevent aging diseases?
These are the few questions they could get data about.
2. Survey Research:
This method is widely used for primary data collection. This approach is suitable for gathering
descriptive data (Kotler, & Armstrong, 2018). Through this method Lumosity can find out
preferences, people’s knowledge, buying behavior and attitudes by asking consumers directly. This
approach has major advantage of flexibility. It helps to obtain many kinds of information in different
situations. It can address almost all marketing decisions or questions, it can also be collected through
phone, mail, online or from persons in front. For example, Lumosity wants to know that what
customers feel about their games, and how much knowledge they have about the Lumosity games, do
they prefer to buy Lumosity games? This approach can be very effective for the Lumosity to collect
information about their product.
3. Experimental Research:
This approach is widely used in controlled environment. Experimental research is used to find out
cause and effect information. Group of people are selected and provided with different tasks and
projects to completed, while controlling other factors. Lumosity can collect data about their games
through experimental research. For example, Lumosity can collect information about their games.
When customers play games, do their cognitive ability increases, or their performance at work
increases, or do they perform better at school? So, this is the cause and effect relationship among
games and cognitive ability and performance.
So, these are the few Primary data collection research approaches, which Lumosity can used to gather
information about their target market before offering their services.

Q2.
Answer:
Ineffectiveness of the advertising message:
First, since the claims of scientific nature are not supported with evidence, rational appeal to advertising
is inappropriate. Second, the claims were also overrated deliberately, which is unethical; and disastrous in
a world increasingly obsessed with responsible business and advertising. Lumosity used the emotional
appeal in their advertisement negatively because consumers’ had fear about their age-related cognitive
declining ability and suggested that games would help them to prevent memory loss, Alzheimer’s disease,
and dementia (FTC Case). And took advantage by linking the benefits of the games with the health of
customers. Lumosity also used deceptive advertisement aggressively by false claims, because their games
were not providing the health benefits which were claimed in advertisements. Nevertheless, they aired
advertisements on TV, Radio, CNN, Fox News, Google AdWords to get traffic on website and other
social and digital media platforms. Defendants were also penalized by promoting games of Lumosity and
failed to disclose some testimonials featured on websites were also fake because they were created
through different contests that promised to pay higher prizes. Lumosity program consists of 40 games,
which were designed to train and target the specific parts of the brain but they were claiming lot of health
concerns (FTC Case).
There are many appeals they can use in advertising in message strategy to target customers. By referring
to book two advertising appeals in message strategy should be used to improve advertisements.
1. Rational Appeal:
Since these games are in the best interest of the customers. Increase R&D spend to come up with
games truly scientifically effective at the advertised functions. Benefits of games and
performance should be communicated to customers and let them decide whether they want to use
those games or not, because it’s unethical to show deceptive advertisements and make false
claims about games, which they don’t provide that would increase sales and profits in short-run
but harm the brand image and profitability of thee company in the-long-run. So, Lumosity should
show all the benefits and performance of games and let the customers’ decide to get those
benefits to improve their health.
2. Emotional Appeal:
Research shows that in experience service conditions including games, emotional appeal leads to
higher purchase intentions (Zhang, Sun, Liu, & Knight, 2014). Therefore, Lumosity should also
go for emotional advertising appeal. Because it’s very effective method for appealing customers’.
Lumosity should link the benefits of the games with health concerns, like, age-related cognitive
decline, increase performance, dementia and Alzheimer’s disease. If Lumosity uses emotional
appeal and claims what they can deliver then their success is guaranteed. But they should be
straight forward and communicate to customers what they can deliver.
So, there advertisements were not effective, if they want to make their advertisements effective, they
should use rational appeal and emotional appeal in their advertisements in message strategy to improve
services.
Q3.
Answer:
There are five sustainable marketing principles which Lumosity has to practice in order to solve their
unethical marketing practices. These are discussed below.
1. Consumer-Oriented Marketing:
According to this concept, company should organize thee marketing activities with the customers’
point of view (Kotler, & Armstrong, 2018). They should try to serve, sense and try to satisfy the
needs of customers now and in future. Lumosity can build profitable and sustainable customer
relationship only by seeing the world through the eyes of its customers. For example, Lumosity
should try to make games that satisfy the customers need properly and what customers want from
those games. Lumosity should try to be clear and straight forward to satisfy the needs of consumers.

2. Customer Value Marketing:

Lumosity should try to use its resources to build the higher value for customers and try to use most
resources in the customer value building activities. Lumosity should try to build long-term customers
engagement and relationship with its customers by providing high quality product, new features etc.
By providing high quality products company can get also value in return from customers through
long-term engagement and loyalty of customers. For example, Lumosity can add new features which
actually help customers to increase their performance, age-related cognitive decline, prevent
dementia, cognitive impairment and Alzheimer’s disease, increase health conditions including
traumatic brain injury, stroke, ADHD, PTSD, etc. After addressing these issues Lumosity can create
higher value for its customers.
3. Innovative Marketing:
This principle requires that Lumosity should continuously try to seek real marketing and product
improvements. If company overlooks new ways to provide goods and services they lose customers.
Lumosity try to look for new and better ways to create higher value for customers. For example,
Lumosity should introduce new ways of playing games, which also include physical activities and
offer new and improved games which create higher value for the customers and customers enjoy
playing those games while gaining health benefits at the same time. New and improved marketing
activities would give competitive advantage to the Lumosity over its competitors and would create
the loyalty and long-term relationship with customers.
4. Sense-of-Mission Marketing:
According to this principle, Lumosity should define its purpose in broader way in perspective of
society rather than narrowing to product term. By defining social mission, employees of Lumosity
can perform better and will have proper direction. Also if the Lumosity is linked with broader mission
statement, it can serve the customers’ and brand’s interest for the long term. Lumosity should have
mission statement that is social and environmental responsible in order to create loyalty and long term
relationship with customers. Lumosity should provide desirable products, which create long-term
relationship with customers and give them higher satisfaction. For example, while considering the
higher value for customers, Lumosity should keep in mind the benefits for the society as a whole, and
try to be environment friendly. They should provide games which improve the lives of customers and
make them healthy. Their games should provide the health benefits claimed by the company, which
improves the health of customers and decrease the risks related to brain.
5. Societal Marketing:
In order to become successful Lumosity should keep in mind the long term relationship with
customers, consumers’ wants, company’s requirements and the long-term interest of society.
Lumosity should be aware that by neglecting the societal and consumers’ long-term interest is a
 destruction of the company, because other competitors see it as an opportunity. Companies which try
to fulfil the needs of customers, deliver higher value, and keep in mind the benefits of the society can
get higher value in return from customers. Lumosity should try to keep in mind the needs of
customers’ and society’s benefits in order to get their brand image back and solve their unethical
marketing practices. For example, Lumosity now provide games that actually gives the health
benefits to customers and increase their performance. As, discussed earlier that Lumosity try to offer
desirable products, which gives long-term benefits and immediate satisfaction to customers. This will
also give benefit to customers for long-term and create higher value for them. It also benefits the
society as whole. This would increase the brand image of Lumosity and create positive brand image
in the minds of customers again.
So, these are the five sustainable marketing principles, which Lumosity can follow to solve their unethical
marketing practices.

Appendix
References:
Kotler, P. and Armstrong, G., 2018. Principles of Marketing (17th Global Edition).

Federal Trade Commission, 2016. Jan 15. Lumosity to Pay $2 Million to Settle FTC Deceptive Advertising
Charges for Its URL: https://www. ftc. gov/news-events/press-releases/2016/01/lumosity-pay-2-million-
settle-ftc-deceptive-advertising-charges [accessed 2019-03-08][WebCite Cache ID 76ipAICcf].

Zhang, H., Sun, J., Liu, F. and Knight, J.G., 2014. Be rational or be emotional: Advertising appeals,
service types and consumer responses. European Journal of Marketing.