Consumer Behavior Test #2 PDF

Consumer behavior research techniques Differences between qualitative and quantitative research → Qualitative research Objective: to gain a qualitative understanding of the underlying reason and motivations Sample: small number of non representative cases Data collection: unstructured Data analysi...

Consumer behavior research techniques Differences between qualitative and quantitative research → Qualitative research Objective: to gain a qualitative understanding of the underlying reason and motivations Sample: small number of non representative cases Data collection: unstructured Data analysis: non statistical Outcome: develop an initial understanding → Quantitative Research Objective: to quantify the data and generalize the results from the sample to the population of interest Sample: large number of representative cases Data collection: structured Data analysis: statistical Outcome: recommend a final course of action Focus group characteristics - Discussion is led by a moderator: individual who meets with focus group participants and guides the session # of members: - 8-12 homogenous group → screening questions - No focus group “experts” Setting - Relaxed, information atmosphere - Ex: refreshments Duration - 1 to 3 hours (typically 1.5-2 hours) Common items - Name cards, water, stimuli,recorder, pencil, paper Location - Traditionally a conference room traditionally with a one-way mirror but any comfortable setting will do - Online (ex: zoom) Depth interview characteristics - unstructured , direct, personal (one-on-one) interview in which a single respondent is probed by a highly skilled interviewer to uncover underlying motivations, beliefs, attitudes, and feelings on a topic - 30 minutes to more than an hour  - Laddering: in laddering, the line of questioning proceeds from product characteristics to user characteristics. This technique allows the researchers to tap into the consumers network of meanings Survey structure- objectives of questionnaires and determining the order of questions → Objectives: - It must translate the information needed into a set of specific questions that the respondents can and will answer - A questionnaire must uplift, motivate, and encourage the respondent to become involved in the interview, to cooperate, and to complete the interview - A questionnaire should minimize response error Determining the order of questions → Effect on subsequent questions - General questions should precede the specific questions (funnel approach) - Definition: an approach to a question sequencing that gets its name from its shape, starting with broad questions and progressively narrowing down the scope - Example: 1. What is your overall attitude toward the following product? 2. How attractive is the product's packaging? 3. How attractive is the product's price? → logical order - All questions that deal with a particular topic should be asked together - Keep similar questions together Experiments- experiments basics and types of experiments → Experiment basics: - Hypothesis - Independent variable - Dependent variable - Experimental design - Condition - Control experimental groups - Extraneous variables - randomization → common types of experiments - Laboratory experiment - Online experiment - Field experiment - A/B testing Multiple Choice/True-False Questions: Key Topics from Chapter 7 (Problem Recognition and Information Search) 5 step decision process 1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. post-purchase Extended Problem Solving vs. Limited Problem Solving vs. Habitual Decision Making Problem Recognition (actual vs. ideal state) - Marketers can help put consumers in a state of problem recognition - Attempt to create a new ideal state - Try to encourage our dissatisfaction with the actual state - Marketers can target the ideal state by showing consumers how the product is the solution to their problem Difference between Internal and External Search - Internal: scanning memory to assemble product alternative information - External: obtaining information from ads, retailers, catalogs, friends, family, people-watching, etc. Describe the kind of information that is retrieved from internal search. - Recall of brands - Recall of attributes - Recall of evaluations - Recall of experiences Consideration Sets - The subset of top-of-mind brands evaluated when making a choice. Brand Recall. What increases motivation to conduct an external search? - Involvement and perceived risk - Perceived costs and benefits - Consideration set - Relative brand uncertainty - Type of product - Attitudes toward search - Discrepancy of information - Presence of others Multiple Choice/True-False Questions: Key Topics from Chapter 8 (Judgment and Decision Making based on High Consumer Effort) Number of evaluations considered - Depends on the decision making process! - Extended problem solving= evaluation of several brands  - May also consider multiple brands in limited problem solving - Habitual decision: consider few/no brand alternatives Evaluative Criteria → determinant attributes: features we use to differentiate among our choices → non-determinant attributes: attributes that don’t help us make a decision (remote that comes with a tv because all tvs come with a remote) Compensatory vs. Non-compensatory Decision Rules The lexicographic rule: “winner take all” game with dimensions The conjunctive rule: eliminates options based on not meeting several criteria Affective forecasting: a prediction of how you will feel in the future Multiple Choice/True-False Questions: Key Topics from Chapter 9 (Judgment and Decision Making based on Low Consumer Effort) Know what the following choice tactics are and be able to give an example: Performance-related tactics Brand Loyalty/ Multi-Brand Loyalty Habit Price-related tactics Normative Influences Affect-related tactics Variety Seeking Multiple Choice/True-False Questions: Key Topics from Heuristics and Biases What is a heuristic? Bias? What does it mean that consumers “satisfice?” Know what the following heuristics/biases/effects are and be able to give an example of each: Availability Heuristic Representativeness Heuristic Sunk Cost Effect Halo Effect Confirmatory Bias Shelf Space Heuristic Scarcity = Desirability Heuristic Brand Name Effect Price-Quality Heuristic Family Influence or Intergenerational Effect Multiple Choice/True-False Questions: Key Topics from More Issues in Decision Making What is a framing effect? Evaluation of individual events vs. total outcomes Describe and understand examples of prospect theory Losses and gains Context effects/reference point effects Extremeness aversion 5 types of situational influences on consumer behavior (what they are, be able to identify examples of each) Multiple Choice/True-False Questions: Key Topics from Chapter 10 (Post Decision Processes) Post-decision dissonance Satisfaction (Expectancy Disconfirmation Model) Post-decision regret Attribution Theory Equity Theory Word of Mouth Why should marketers care about disposition? Topics for Short Answer Questions Qualitative and Quantitative Consumer Behavior Research (Research Techniques) Ways marketers can create problems and find solutions to problems (Chapter 7) Compensatory vs. non-compensatory models/how they are used in decision making (Chapter 8) Implications of prospect theory (More Issues in Decision Making) Why do marketers care about what happens after a sale? (Chapter 10) For the above topics, I would suggest being able to explain the topics, provide examples, and know the marketing implications. Sure! Here’s a breakdown of each topic with explanations, examples, and marketing implications: --- 1. Qualitative and Quantitative Consumer Behavior Research (Research Techniques) - Qualitative Research - Explanation: This involves gathering non-numerical insights to understand consumer behavior, attitudes, and motivations. Techniques include focus groups and in-depth interviews. - Example: A travel company might use focus groups to explore travelers' emotions about sustainable tourism. - Marketing Implication: Qualitative research helps marketers understand *why* consumers make certain choices, guiding branding and messaging strategies. - Quantitative Research: - Explanation: This focuses on numerical data to identify trends and quantify behaviors, often using surveys, experiments, or data analytics. - Example: A retail store surveys 1,000 shoppers to determine how price affects purchase decisions. - Marketing Implication: Quantitative data helps marketers make data-driven decisions, such as pricing strategies, product design, and market segmentation. --- 2. Ways Marketers Can Create Problems and Find Solutions to Problems (Chapter 7) - Explanation: Marketers often create or highlight "problems" that consumers didn’t realize they had, then offer products or services as solutions. This is closely tied to need recognition in the consumer decision-making process. Marketers can help put consumers in a state of problem recognition - Attempt to create a new ideal state - Try to encourage our dissatisfaction with the actual state - Marketers can target the ideal state by showing consumers how the product is the solution to their problems - **Example**: Apple introduced the iPhone by creating a "problem" around how we use mobile phones—highlighting issues like poor user interfaces and lack of connectivity. They presented the iPhone as the solution to these problems. - **Marketing Implication**: By framing problems effectively, marketers can create a demand for new products or services. They also need to listen to consumers to find emerging problems and innovate accordingly. --- ### 3. **Compensatory vs. Non-Compensatory Models in Decision Making (Chapter 8)** - Compensatory Models: - Explanation: Consumers weigh the pros and cons of different attributes of a product. High ratings on some attributes can "compensate" for lower ratings on others. - Example: A consumer might choose a more expensive phone because its features outweigh the high price. - Marketing Implication: Marketers should focus on highlighting key attributes that might compensate for weaker ones (e.g., high price compensated by exceptional quality). - Non-Compensatory Models: - Explanation: Consumers set strict criteria for decision-making. If a product fails on one attribute, they will reject it, regardless of other features. - Example: A consumer might reject a car outright if it doesn’t meet their fuel efficiency requirements, no matter how good other features are. - Marketing Implication: Marketers must understand the "non-negotiable" criteria for their target market and ensure those are met to avoid being disqualified early in the decision process. --- 4. Implications of Prospect Theory (More Issues in Decision Making) - Explanation: Prospect theory suggests that people value gains and losses differently, with losses having a greater emotional impact than gains of the same size. Consumers are more likely to avoid losses than seek gains (loss aversion). - Example: A customer is more motivated by avoiding a $50 loss (e.g., a late fee) than by gaining a $50 discount. - Marketing Implication: Marketers can use loss aversion to motivate consumer action. For example, limited-time offers or "fear of missing out" (FOMO) tactics play on the idea that missing out on a deal is a loss. --- 5. Why Do Marketers Care About What Happens After a Sale? (Chapter 10) - Explanation: What happens after a sale is critical for long-term business success. Post-purchase behavior affects customer satisfaction, brand loyalty, and word-of-mouth marketing. - Example: A satisfied customer may leave a positive review or recommend the product to friends, while a dissatisfied customer may return the product or post negative feedback. - Marketing Implication: Marketers need to ensure customer satisfaction post-sale, offering good customer service, easy return policies, and follow-up communication to foster loyalty and encourage repeat purchases. This helps turn customers into brand advocates. ---