Term
| How to study Consumer Behavior |
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Definition
| Intuition and introspection do not always provide real insight: for this reason, it is often important to study consumer behavior to understand it |
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Term
| Use of Intuition, Common Sense |
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Definition
-Easier, more vivid than data
-More likely with increased experience
-Consumer research is probabilistic |
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Term
| Problems with the use of Intuition, Common Sense |
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Definition
-Not representative (projection bias)
-Make decisions based on few observations
-Biases (projection bias, overconfidence, surface similarities)
-Illusory correlations (prior beliefs, focus on presence, infer causality from correlation, etc) |
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Term
| Why don't we just ask people? |
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Definition
-People do not know why they do what they do
-People do not want to tell you why they do what they do
-Sometimes asking them changes their behavior |
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Term
| Research Methods: Projective Techniques |
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Definition
An unstructured and indirect form of questioning which encourages the respondents to project their underlying motivations, beliefs, attitudes, or feelings regarding the issues of concern
Examples: sentence completion, story telling, third-person technique/ role playing, collages, etc |
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Term
Research Methods: Qualitative:
Observation, Interviews, and Surveys |
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Definition
Observation: natural settings vs artificial settings
Interviews & Surveys: focus groups, in depth |
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Term
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Definition
Conducted face-to-face with one respondent with the objective of exploring in detail the subject matter
Method: approach and structure vary |
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Term
| In-Depth Interview Techniques |
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Definition
-Laddering: Why is it important to you?
-ZMET: Pictures illustrating thought and feelings about a product
-Projective techniques: Rorshach (inkblot) test, brand personification, free association, third person techniques |
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Term
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Definition
Group of respondents discuss a marketing problem by responding and reacting to each other
Method: trained interviewer develops a discussion guide, 5-9 (usually 8-12) participants |
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Term
| Flexible Interviewing Techniques |
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Definition
-Chain reaction
-Devil's advocate
-False termination |
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Term
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Definition
-Mall intercepts
-Telephone surveys
-Mail questionnaires
-Internet surveys
-longitudinal survey studies |
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Term
| Problems with Interviews and surveys |
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Definition
-Self selection
-self reports
-sensitivity to wording and order |
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Term
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Definition
causal v correlational relationships
manipulate an independent variable and measure changes in a dependent variable
-laboratory experiments
-field experiments |
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Term
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Definition
Requirements to establish causality:
1. control/ manipulate the cause (independent variable) and hold "everything else" constant
2. the cause has to precede the effect (dependent variable)
3. random assignment- makes experimental groups statistically equivalent |
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Term
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Definition
| test hypotheses about causal relationship between variables |
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Term
| Independent Variables (or factors, conditions, treatments, and predictors) |
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Definition
| manipulated and administered to study participants (categorical) |
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Term
| Dependent Variables (or response variables) |
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Definition
| Measure participants' responses following the administration of the treatment so that any differences in these responses can be attributed to differences across treatments (categorical or continuous) |
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Term
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Definition
relationship between two variables
correlation does not equal causation |
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Term
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Definition
one variable producing an effect in another variable
correlation does not equal causation |
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Term
| 3 Factors Necessary for Causation |
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Definition
1. Correlation
2. Temporal antecedence
3. No third factor driving both |
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Term
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Definition
-spurious = artificial, fake
-danger of data mining
-lots of things are correlated, but not really related |
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Term
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Definition
| the analysis step of the knowledge discovery in databases process |
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Term
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Definition
| How different neural circuits light up or go dark during the buying process helps predict purchase |
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Term
| Neuromarketing Biometrics |
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Definition
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Term
| Consumer Decision Process |
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Definition
| Need recognition -> search -> evaluation and choice -> purchase -> consumption and evaluation -> divestment |
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Term
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Definition
detecting a difference between the perceived actual state and the plausible desired state
**difference has to exceed the awareness threshold** |
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Term
| Understanding Consumers' Needs |
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Definition
-identify unfulfilled needs
-monitor changes in consumers' needs
-perceived actual states
-plausible desired states
-predict changes in consumers' needs
-create association between problem and product |
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Term
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Definition
| discrepancy between ideal state and actual state |
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Term
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Definition
| physical form a need takes on |
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Term
| Needs are important because... |
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Definition
-Increases motivation if a product is consistent with needs and this leads to deeper processing, greater likelihood of remembering product, forming stronger attitudes toward a brand, etc.
-People buy products in order to satisfy needs. Since this is the case, we want to identify and measure needs in order to design products and mktg strategy better. Buy a jacket because I don’t want to be cold, not because I just want fabric in the form of a jacket. Could buy a jacket because I want to be stylish/trendy, but that’s still a need for style driving my purchase. |
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Term
| External Search: Pre-purchase Search |
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Definition
| occurs in response to activation of problem recognition |
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Term
| External Search: Ongoing Search |
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Definition
| occurs at regular and continual basis even without specific need recognition |
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Term
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Definition
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Term
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Definition
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Term
| Sources of Information: Retailer Search |
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Definition
| visits to stores, examination of packaging and pamphlets |
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Term
| Sources of Information: Media Search |
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Definition
| market produced communications |
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Term
| Sources of Information: Interpersonal Search |
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Definition
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Term
| Sources of Information: Independent Search |
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Definition
| contact with independent sources of information |
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Term
| Sources of Information: Experiential Search |
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Definition
| use of product trials, test drives, online simulations |
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Term
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Definition
| comparison shopping, recommendations |
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Term
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Definition
search increases as expected costs decrease and expected benefits increase
Determined by:
-involvement (perceived risk, importance)
-experience
-satisfaction with experience
-perceived variance
-available choice set
-available resources
-mood state
-efficient search opportunities (Internet) |
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Term
| Amount of search: Individual Differences |
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Definition
-Involvement and experience
-Income
-People who enjoy shopping
-Women > Men
-Younger
-Better educated
-Greater value on style and image |
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Term
| The Internet's Affect on the Amount of Search |
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Definition
| reduces search cost and increases search opportunities; effect on consumers' price sensitivity and firm's profitability |
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Term
| Why Study Consumer Search? |
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Definition
Use understanding of search processes to:
-facilitate search process (low involvement purchases)
-determine pricing strategy
-target promotions
-selectively encourage search behavior |
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Term
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Definition
| contact with marketing stimulus; needs to exceed absolute threshold |
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Term
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Definition
| messages or elements of messages that people don't realize they've seen, intended to influence them or feel a certain way; tap the unconscious mind of viewers or listeners |
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Term
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Definition
-firsthand experience
-secondhand information |
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Term
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Definition
-when stimulus exceeds threshold
-thresholds: absolute and differential |
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