MM Tut 5 & 6 PDF

# Tutorial 5 ## Two Types of Statistics - Descriptive Statistics: Describing the features of a dataset in statistical terms. - Inferential Statistics: Drawing inferences from a sample about a larger population. ## Sampling - **Sample:** Actual data that is available to researchers. A subset of t...

# Tutorial 5 ## Two Types of Statistics - Descriptive Statistics: Describing the features of a dataset in statistical terms. - Inferential Statistics: Drawing inferences from a sample about a larger population. ## Sampling - **Sample:** Actual data that is available to researchers. A subset of the population the researcher wants to draw conclusions about. - **Population:** All possible observations the researcher wants to draw conclusions about. ## Key Elements of Samples - Represent a subset of a larger population - Must be selected through a defined process - Need to be large enough for statistical validity - Should represent the population's key characteristics ## Key Theory - In a simple random sample, every member of the population has an equal chance of being selected. - **Stratified sampling:** Divide population into subgroups (strata) before random sampling. - **Snowball sampling:** Current study participants recruit future participants. - In **convenience sampling**, participants are selected based on their availability and ease of access to the researcher ## Issues of Convenience Sampling: - **Self-selection** - **Non-representative sub-populations:** You are WEIRD - Western, Educated, Industrialized, Rich, and Democratic - Students ## "Hard" Incentives - Money, gift card lotteries, gifts, course credit ## "Soft" Incentives - Being nice, transparency and honesty, good study design, interesting topics ## Central Limit Theorem (CLT) - The central limit theorem states that the distribution of sample means approximates a normal distribution as the sample size becomes large. ## Why do we care? - Larger sample sizes are more reliable than smaller ones. - The normal distribution is the basis of many statistical tests -> We are building confidence intervals (CIs) to make claims about differences. ## What is a large sample size? - Conventionally, a sample size of 30 or larger suffices for the CLT to hold. ## Law of Large Numbers - This law states that as your sample size increases, your sample statistics get closer to true population values. Effects: - More stable estimates - Reduced impact of outliers - Better representation of population diversity - More reliable decision-making basis - **The larger your sample, the closer the sample mean will be to the population mean** ## Confident Interval - A 95% Confidence Interval is a range derived from sample data that has a 95% chance of containing the true population value under repeated sampling. ## Questionnaire 1. **What Do You Want to Find Out?** - What is your research question and hypothesis? - What are your predictor and outcome variables? 2. **What Data Do You Need to Answer Your Research Question?** - Operationalize your theoretical constructs. - Choose method of measurement. 3. **How Do You Analyze the Data?** - Different data structures require different skills. Be sure that you have the skills to analyze the data. 4. **How Can the Data Be Collected?** - Choose the right questionnaire elements to collect the required data. ## Advantages - Cheap - Simple and quick - Adaptable and scalable - Most question types are easy to analyze ## Disadvantages - Non-engagement and lying - Incomplete responses - Misunderstandings - Limited way of providing additional information ## Questionnaire Flow - Participants start by giving consent and reading the instruction page. - Get to your main (research) questions early. Ask questions that require much thought early. - Questions that are not part of your main (research) question or that are easier to answer should come later. - Close with demographics, survey feedback, and if necessary, a debrief form. ## Main Body - This part contains your actual (research) questions. - For academic research, work "backwards": start with measuring the outcome variable before measuring the process variable. - For non-academic research, get the most "valuable" data first. ## Question Types - **Open-Ended** - Open-ended questions prompt people to answer with sentences, lists, and stories. - Provide richer data - Help with vaguely defined theoretical constructs - Allow nuance and clarifications - Time-consuming - Hard to analyze and compare (also LLMs made this easier) - AI-generated - **Closed-Ended** - Closed-ended questions limit answers. - Provide very specific data - Allow to establish statistical relationships - Quickly answered - Can be misinterpreted - Allow only limited insights - "Good" responses hard to distinguish from "bad" responses. - **Closed-Ended** - Multi-choice - Multi-select - Ranking order - Rating order - Scale - Matrix Tables - Sliders ## Demographics - Are statistical data relating to the population and particular groups within it, such as age, gender, income level, education, and ethnicity. # Tutorial 6 ## Court (2019): "The Consumer Decision Journey" - This article introduces the Consumer Decision Journey, emphasizing the shift from a linear funnel model to a circular and dynamic process. - It identifies critical stages - initial consideration, active evaluation, purchase, and postpurchase - and highlights the growing role of consumer-driven touchpoints. - Additionally, it differentiates between active and passive loyalty, illustrating the importance of influencing postpurchase behaviors for sustained brand success. ## Introduction to the Consumer Decision Journey (CDJ) - **Traditional funnel models** suggest a linear process where consumers narrow down options and make a purchase. - This metaphor no longer captures the complexity of modern decision-making. - **CDJ represents a circular, dynamic process shaped by a variety of touchpoints and consumer behaviors.** ## Key Phases in the Consumer Decision Journey - **Initial Consideration** - Consumers create a shortlist of brands based on impressions from advertisements, conversations, and experiences. - Brand awareness is critical here, as brands in the initial-consideration set are three times more likely to be purchased. - **Active Evaluation** - Consumers expand or reduce their brand choices by researching and evaluating options. - Unlike the funnel, where options are narrowed, this stage often sees new brands entering consideration through consumer-driven marketing, such as online reviews and word-of-mouth. - **Moment of Purchase** - Consumers make their final decision based on accumulated information and personal preferences. - **Postpurchase Phase** - The consumer's experience with the product influences future loyalty and brand advocacy. - Positive experiences may reinforce loyalty, while negative ones open doors for competitors. ## Active Loyalty - Fully committed to the brand - Choosing the brand repeatedly - Recommending the brand ## Passive Loyalty - Not fully committed - Chooses brand out of convenience - Open to changing if another better option arises ## Empowered Consumers and Marketing Shifts - The transition from marketer-driven to consumer-driven marketing is profound: - Two-thirds of active-evaluation touchpoints are consumer-driven, including online reviews, word-of-mouth, and past experiences. - One-third are marketer-driven, like advertisements and direct marketing. - Successful companies adapt by influencing consumer-driven channels, ensuring a consistent and compelling presence across all stages ## Types of Loyalty in the Postpurchase Phase - **Active Loyalty** - Consumers who not only continue purchasing but also recommend the brand to others. - **Passive Loyalty** - Consumers remain with the brand out of convenience or habit but are open to switching if persuaded by competitors. ## Application in Different Industries - The automobile insurance sector illustrates these concepts: - Some companies, like GEICO and Progressive, actively target passively loyal customers from competitors by simplifying the comparison and switching process. - Strong customer satisfaction in the postpurchase phase creates a "virtuous cycle,” reinforcing loyalty and encouraging positive word-of-mouth. ## Hilken et al. (2018): "Making Omnichannel an Augmented Reality" - This paper explores AR's potential to enhance omnichannel experiences, offering a framework grounded in situated cognition. - It highlights AR's ability to create seamless, engaging customer journeys by blending online and offline elements, while addressing gaps in current applications and research. ## Theory - **Situated Cognition Framework**: AR-enabled customer experiences are conceptualized around three principles: - **Embedded Experiences**: Integrate products/services into the consumer's immediate context (e.g., virtual try-ons). - **Embodied Experiences**: Simulate physical interaction, improving product evaluation through sensory engagement. - **Extended Experiences**: Enable social sharing and collaborative decision-making. ## Integration of Online and Offline Channels - AR merges online convenience with offline sensory engagement. - Applications like L'Oreal's virtual mirror or IKEA's furniture placement app illustrate practical benefits. ## Barriers and Solutions - Customer dissatisfaction often stems from a lack of seamless channel integration. - AR can overcome these by reducing decision-making uncertainty and providing real-time, context-sensitive experiences. ## Batra and Keller (2016): "Integrating Marketing Communications" - This article presents frameworks for optimizing integrated marketing communications. - It emphasizes the need for consistency, complementarity, and understanding cross-media interactions in a fragmented media landscape. ## Purpose of IMC - Ensure consistent messaging across all channels. - Maximize marketing impact through integrated efforts. - Build trust and loyalty with a unified brand experience. - Optimize resources by reducing redundancies. ## Relevance of IMC - Addresses multichannel consumer behavior. - Integrates traditional and digital marketing strategies. - Differentiates brands in competitive markets. - Aligns with customer-centric approaches. - Improves cost efficiency in marketing campaigns. ## Challenges in IMC - Shifting consumer behaviors and media usage patterns complicate communication integration. - The rise of digital media necessitates synchronized messaging across channels. ## Two IMC Models - **Top-Down Optimization Model** - - Evaluates the overall integration/effectiveness of communication strategies to balance short-term sales and long-term brand equity. - **Bottom-Up Matching Model** - - Matches media to consumers' needs at different decision stages. ## Bottom-Up Stages: - **Awareness Stage** - Capturing attention and introducing the brand. - **Consideration Stage** - Help consumers evaluate options and builds trust. - **Decision Stage** - This targeted communication can influence consumers to make a purchase. ## Key Considerations: - **Consistency:** Unified messaging across platforms. - **Complementarity:** Utilizing diverse media strengths for holistic impact. - **Cross-Effects:** Interactions between media amplify overall effectiveness.