Podcast
Questions and Answers
What does a correlation rating of 0 indicate?
What does a correlation rating of 0 indicate?
What is the likelihood that a product with a higher rating (less than 0.20 difference) is better?
What is the likelihood that a product with a higher rating (less than 0.20 difference) is better?
How do user ratings generally correlate with the amount paid for a product?
How do user ratings generally correlate with the amount paid for a product?
What outcome was observed when consumers tasted wines while being scanned?
What outcome was observed when consumers tasted wines while being scanned?
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What influences consumer perceptions of product quality according to the content?
What influences consumer perceptions of product quality according to the content?
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What was the key difference between the empathy group and the no-empathy group in the study?
What was the key difference between the empathy group and the no-empathy group in the study?
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How did feedback groups differ in their approach to measuring confidence in predictions?
How did feedback groups differ in their approach to measuring confidence in predictions?
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What effect does searching for contradictory evidence have on a person's confidence?
What effect does searching for contradictory evidence have on a person's confidence?
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What was the primary objective of the study involving marketing students making predictions?
What was the primary objective of the study involving marketing students making predictions?
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What conclusion can be drawn from Mark Twain's quote included in the material?
What conclusion can be drawn from Mark Twain's quote included in the material?
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What is the primary finding regarding the number of alternatives in the context of purchasing behavior?
What is the primary finding regarding the number of alternatives in the context of purchasing behavior?
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In the jam tasting study, what effect did having 6 types of jam have on consumer purchasing likelihood compared to 24 types?
In the jam tasting study, what effect did having 6 types of jam have on consumer purchasing likelihood compared to 24 types?
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What impact does the number of investment alternatives have on participation in pension plans?
What impact does the number of investment alternatives have on participation in pension plans?
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What is suggested by the independence of alternatives principle?
What is suggested by the independence of alternatives principle?
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When consumers are deciding on iced tea sizes, what price psychology is observed?
When consumers are deciding on iced tea sizes, what price psychology is observed?
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What is the maximum number of cookie varieties mentioned?
What is the maximum number of cookie varieties mentioned?
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In the grocery store study, what was observed regarding the relationship between the number of eliminated alternatives and sales?
In the grocery store study, what was observed regarding the relationship between the number of eliminated alternatives and sales?
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Which category contains the highest number of varieties among the options presented?
Which category contains the highest number of varieties among the options presented?
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What was the observed preference among participants when presented with a $204 nonstop flight for United versus a $270 flight with one stop for American Airlines?
What was the observed preference among participants when presented with a $204 nonstop flight for United versus a $270 flight with one stop for American Airlines?
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Which social psychology technique involves asking for a larger request first followed by a smaller request?
Which social psychology technique involves asking for a larger request first followed by a smaller request?
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In the foot-in-the-door technique, what is typically the initial request?
In the foot-in-the-door technique, what is typically the initial request?
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What describes the 'social dimension' in the context of compliance techniques?
What describes the 'social dimension' in the context of compliance techniques?
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What principle does the question 'Would you complete this survey?' reflect in Kahneman's studies?
What principle does the question 'Would you complete this survey?' reflect in Kahneman's studies?
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What is the likely effect of 'availability bias' mentioned in the context of decision-making?
What is the likely effect of 'availability bias' mentioned in the context of decision-making?
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When comparing choices in the described flight scenarios, which factor influenced the 'heard' responses?
When comparing choices in the described flight scenarios, which factor influenced the 'heard' responses?
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What behavioral aspect does the concept of 'reciprocity' refer to in social psychology?
What behavioral aspect does the concept of 'reciprocity' refer to in social psychology?
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What characteristic defines positive brand equity?
What characteristic defines positive brand equity?
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How can logos impact consumer behavior?
How can logos impact consumer behavior?
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Which of the following is NOT a component of brand knowledge?
Which of the following is NOT a component of brand knowledge?
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What is the consequence of a brand not being invested in over time?
What is the consequence of a brand not being invested in over time?
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What did Colgate's frozen entrees fail to achieve in the market?
What did Colgate's frozen entrees fail to achieve in the market?
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What is the significance of associative memory in consumer behavior?
What is the significance of associative memory in consumer behavior?
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In what way can a company's brand placement in the consumer's mind be described?
In what way can a company's brand placement in the consumer's mind be described?
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What is an outcome of high brand activation in memory?
What is an outcome of high brand activation in memory?
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What does the lexicographic heuristic primarily focus on when making decisions?
What does the lexicographic heuristic primarily focus on when making decisions?
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What is the elimination-by-aspects heuristic designed to do?
What is the elimination-by-aspects heuristic designed to do?
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Which of the following statements best describes the satisficing heuristic?
Which of the following statements best describes the satisficing heuristic?
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What fundamental difference separates normative theory from descriptive theory?
What fundamental difference separates normative theory from descriptive theory?
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What concept explains why individuals are more sensitive to losses than gains?
What concept explains why individuals are more sensitive to losses than gains?
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What is often a reason consumers hesitate to adopt new products?
What is often a reason consumers hesitate to adopt new products?
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What happens when benefits from a new product take time to manifest?
What happens when benefits from a new product take time to manifest?
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Which of the following is a characteristic of both homo economicus and homo sapiens?
Which of the following is a characteristic of both homo economicus and homo sapiens?
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Study Notes
Consumer Behaviour
- Marketing is not rocket science, but a social science
- One-to-one relationships between quality of process and quality of outcome
- No guarantee that good processes lead to good outcomes, or vice versa
- Difficulty in predicting consumer behaviour
- Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
- Marketing involves value creation for customers and stakeholders.
Correlation and User Ratings
- High correlation between objective performance and user ratings indicates higher quality.
- Correlation of 0 means no correlation.
- Negative correlation shows higher ratings on Amazon correlate with lower quality.
User Ratings and Product Quality
- Example: If two products are similar (same category, features), but one has higher ratings on Amazon, it may not necessarily perform better in standardized quality tests.
Persuasion
- User ratings are higher based on price and influenced by what satisfied consumers have to say
- Quality perceptions are influenced by marketing variables.
- Sampling wine in a scanner, the order of presentation impacts liking and price
Other Experiments
- Willingness to pay is impacted more by packaging than by ingredients.
- Independent market testing: measuring song popularity without social influence.
- Social market testing: measuring song popularity with social observation of other's preferences
- Importance of correlation vs. causation, in the context of marketing decision-making
Managerial Thinking Traps
- Value that consumers see depends on more than objective product performance (including brand name and social influences).
- Marketing is too important to be left to a dedicated department.
- How to interact with competitors, what their capabilities are, what's your capabilities are, what's the overlap?
- Egocentrism (overestimating your knowledge and undervaluing others).
- Important: lack of concrete information/misunderstanding.
- Consumer perspective is different from those in marketing.
Knowing with Certainty
- Overconfidence can be reduced through negative feedback and searching contradictory evidence.
- Accuracy in predictions increases when confronted with unfavourable feedback.
- Think critically, consider weaknesses and find counterarguments
- Avoid biases and be aware of overconfidence
Projecting Knowledge
- Precise numbers in predictions often lead to trust (especially for high-value items)
- Round numbers are less persuasive than numbers with precision
Knowing the Unknown
- The unknown unknowns (things we don't even know we don't know) are important, as well as the known unknowns (what we don't know).
- Recognize what you don't know to overcome uncertainty
Qualitative Research Techniques
- Offline: 1-on-1 interviews, group/focus sessions, immersion/participating observations, live/non-verbal conversations
- Online: asynchronous conversations, observations
- Powerful but hard to gather data
Understanding Consumer Behavior
- Different categories of people respond to ads differently based on their unique interests (e.g., outdoors, crafts, or conservative interests).
- Algorithmic targeting: advertising is not random, it's based on observed interests.
- Understanding motivations and what people need.
- Different decision-making processes may be less successful than some simple decision models
- Importance of the current context, people respond to situations differently when they are stressed.
Consumer Behavior Issues
- People are defensive/reluctant to share personal information, don't know what information to expect
- People are not good at dealing with ambiguity and complexity
Additional Consumer Behavior
- People are averse to losses
- People tend to look for simpler explanations
- Consumers are motivated by different categories & wants, and what will give them value
- What they need is frequently different from the status quo, but is also influenced by external forces
- Social proof, reciprocity, consistency, authority, and liking affect behavior
- Reference points: where does one start, where does somebody's reference point start
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Description
This quiz explores various aspects of consumer behavior, including correlation ratings, user perceptions, and the impacts of empathy on product evaluations. Dive into the study findings related to product quality, consumer confidence, and the influence of external factors on buying decisions. Test your knowledge about these marketing concepts with thought-provoking questions.
