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147 Cards in this Set
- Front
- Back
Three elements for the marketing strategy
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Consumer Affect and Cognition
Consumer Behavior Consumer Environment |
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What is Consumer Behavior?
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The dynamic interaction of affect and cognition,
behavior, and the environment by which human beings conduct the exchange aspects of their lives (def. of the American Marketing Association) |
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Interpretive Approach to studying Consumer Behavior
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– Based on theories and methods from cultural
anthropology – Objective is to understand consumption and its meanings – Methods of study involve • Long interviews • Focus groups |
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Traditional Approach to Studying Consumer Behavior
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– Based on theories and methods from cognitive,
social, and behavioral psychology, and sociology – Objective is to develop theories and methods to explain consumer decision making and behavior – Methods of study involve • Experiments • Surveys |
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Marketing Science Approach to Studying Consumer Behavior
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– Based on theories and methods from economics and statistics
– Objective is to develop and test mathematical models to predict the impact of marketing strategies on consumer choice and behavior – This method of study has become popular in the consumer packaged goods industry since it can handle large scanner data sets |
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Marketing Strategy
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Design, implementation, and control of a plan to
influence exchanges to achieve organizational objectives |
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Marketing Strategies Are meant to influence:
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– What they think
– How they feel – What they do |
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Essence of Marketing Strategy
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to understand markets, develop and implement
superior strategies to attract and hold them profitably |
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Consumer Affect
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• Refers to feelings and emotions about stimuli and events
• Responses can be favorable or unfavorable • Responses can vary in intensity |
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Consumer Cognition
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• Refers to thinking (beliefs, opinions, attitudes; evaluative or nonevaluative)
• Mental structures and processes involved in thinking, understanding, and interpreting stimuli and events • Aspects of cognition are conscious and automatic |
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Overt Behavior
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Physical actions of consumers
that can be directly observed and measured by others |
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Consumer Environment
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Everything external to consumers that
influences what they think, feel, and do |
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Marketing Strategy
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A set of stimuli placed in consumers’ environments
designed to influence their affect, cognition, and behavior • Treated as the hub of the wheel of consumer analysis |
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Competences of Marketing Research
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To obtain a detailed understanding of the stages involved in conducting research.
• To get an overview of the various research designs available • Deciding which research design / approach is most appropriate for a particular situation. • To obtain an understanding of some main statistical techniques available for analyzing the data obtained via marketing research. • Deciding which statistical technique is most appropriate for solving the research questions at hand. • Drawing conclusions from your research and summarize the most important findings. |
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ESOMAR definition of Marketing Research
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“Marketing research is a key element within the total field of marketing information. It links the consumer, customer, and public to the marketer through information which is used to identify and define
marketing opportunities and problems; to generate, refine, and evaluate marketing actions; and to improve understanding of marketing as a process and of the ways in which specific marketing activities can be made more effective. Marketing research specifies the information required to address these issues; designs the method for collecting information; manages and implements the data collection process; analyzes the results; and communicates the findings and their implications” |
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AMA definition of Marketing Research
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“Marketing research is the function that links an organization to its market through the gathering of information. This information allows for the
identification and definition of market-driven opportunities and problems. The information allows for the generation, refinement, and evaluation of marketing actions. It allows for the monitoring of marketing performance and improved understanding of marketing as a business process” |
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The Marketing Research Process
*IMPORTANT* |
Stage 1: Problem Definition
Stage 2: Research Approach Stage 3: Research Design Stage 4: Data Collection Stage 5: Data Analysis Stage 6: Presentation of Results |
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Stage One Marketing Research Process
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Problem Definition:
Finding research problems and decision-making problems to solve through the research |
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Defining a Problem
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Make a broad statement and then break it down into specific components to be worked on
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Stage 2 Marketing Research Process
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Approach to the Problem:
-Theory guides the project -Analytical Model provides summary of key variables -Research Questions refine the problem's specific components (ex. how x may affect y) -Hypothesis provides goal for each question - |
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Stage 3 Marketing Research Process
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Research Design:
Master plan of the methods and procedures needed to collect and analyze the needed information |
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Goal of Research Design
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Assess the research
design means to classify the study: – exploratory or conclusive – Exploratory, descriptive or causal – Sources of error |
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Goal of Exploratory Research
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To gain understanding / insight
When little is known about a topic |
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Methods of Exploratory Research
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• Interviews
• Focus groups • Secondary data • Projective techniques • Content analysis / Nethnography • Unstructured observation |
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Descriptive Research
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MAIN GOAL
To describe CHARACTERISTICS • Information needed clearly specified • Formal and structured research process • Large, representative samples • May be cross-sectional or longitudinal • Quantitative data analysis |
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Casual Research
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OBJECTIVE
• To test for the presence of causal relationships • To measure the causal effects |
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Qualitative Research
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“An unstructured, primarily exploratory design based on small
samples, intended to provide insight and understanding” (Malhotra and Birks, 2008). |
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Quantitative Research
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“Research that seeks to quantify data and typically apply some form of
statistical techniques” (Malhotra and Birks 2008) |
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Objectives of Qualitative Research
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• Discovery and identification of new ideas / thoughts / feelings
• Researching sensitive topics • Unraveling subconscious feelings • Understanding and researching complex phenomena • To obtain a holistic view of phenomena • Development new theory: grounded theory |
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Focus Group
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Discussion conducted by a trained moderator among a small group of
respondents in a unstructured and natural manner Group Size: 8-12 |
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Focus Group Objectives
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• To provide data for (re)defining marketing (research) problems
• To gain insight in the results of quantitative findings • To generate new ideas about products, services or delivery methods • To understand consumer preferences |
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Saturation Point
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Point at which no new ideas are presented
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Small Group Size
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Small (less than 6 respondents)
• more depth and breadth in discussion (+) • less synergy (-) • One person may more easily dominate (-) • Not often used, except when number of respondents is inherently small (e.g. potential Audi R8 buyers) |
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Large Group Size
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LARGE GROUPS (MORE THAN 8 RESPONDENTS)
• More difficult to control (-) • Subgroups may emerge (-) • Distance between moderator and respondents (-) • Cultural preference. Not used often in Belgium / Netherlands, but in the United Kingdom people prefer large groups. |
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Medium Group Size
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MEDIUM-SIZED GROUPS (N = 6 TO 8)
– Optimal level of group dynamics – Little chance disintegration – Most frequently used here |
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Depth Interviews
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“A depth interviews is an unstructured, direct, personal interview in which a single respondent is probed by an experienced interviewer to uncover underlying motivations, beliefs, attitudes and feelings on a
topic” (Malhotra and Birks 2007). |
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Laddering
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“Laddering is a qualitative technique using depth interviews to evaluate
the significance consumers attach to products or services” (de Ruyter and Scholl 2005). |
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Means-End-Chain (MEC)
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Theoretical framework underlying laddering
Attributes -> Effects -> Values |
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Critical Incident (Depth Interviews)
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• A critical incident is an event that respondents experienced as positive or negative.
• Due to the “intense” character of the event the respondent’s awareness threshold is crossed. Consequently, the situation sticks in their minds • Respondents can give a detailed description |
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Online Focus Groups/Depth Interviews
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• Difficult to verify the respondents’ identity
• Difficult to check that respondents are not engaged in another task • Little control on the physical settings • Body language cannot be observed • Limited group dynamics • Products cannot be touched or smelled • No geographical constraints • Opportunity to recontact people later • Lower cost (no travel for instance) |
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Projective Techniques
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“A projective technique is an unstructured and indirect form of questioning that encourages respondents to project their underlying motivations, beliefs, attitudes or feelings regarding the issue of
concern” (Malhotra and Birks 2007). |
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Association Techniques (Projective)
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Respondent is presented with a stimulus and should
mention the first thing that comes to mind. |
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Completion Techniques (Projective)
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Respondents are asked to complete an incomplete stimulus situation.
• Sentence completion |
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Construction Techniques (Projective)
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Projective technique in which respondents are required to construct a
response in the form of a story, dialogue or description. • Closely related to completion techniques but less structured |
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Expressive Techniques (Projective)
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Respondents are presented with a verbal or visual situation and are asked to relate the feelings and attitudes of other people to the situation.
• Assumed is that the respondent will reveal personal beliefs and attitudes while describing the reactions of a third party. Less social pressure to give acceptable answer. |
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Advantages/Disadvantages of Projective Techniques
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RELATIVE ADVANTAGES
• Elicit responses that respondents would be unwilling or unable to give if they knew the purpose of the study • More valid answers as purpose of study is disguised • Retrieving beliefs at a subconscious level RELATIVE DISADVANTAGES • Interpretation bias • Expensive |
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Ethnography
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• Ethnography is a research approach based upon the observation of the customs, habits, and differences between people in everyday
situations. Observation may be direct or indirect (e.g. via written material) |
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Advantages/Disadvantages of Ethnography
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ADVANTAGES
• Many objects simultaneously • Versatile / Many behaviors can be observed • Usually fast • Relatively inexpensive DISADVANTAGES • Limited generalizability • Usually limited to overt behavior • Usually limited insight in the object’s attitudes, motivations etc. • Ethical concerns |
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Netnography
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Applying Ethnography to internet users
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Consumer Decision Making
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Consumer decision making involves three
important cognitive processes: 1) Interpretation of relevant information in the environment 2) Combining or integrating this knowledge 3) Retrieving product knowledge from memory to use in integration and interpretation processes |
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Consumer Decision Making Stage 1
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Interpretation:
Exposure to elements in environment, giving them attention, interpreting their meaning |
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Consumer Decision Making Stage 2
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Integration:
Integration processes concern how consumers combine different types of knowledge to: • Form overall evaluations of products, other objects, and behaviors (attitude) |
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Consumer Decision Making Stage 3
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Knowledge Retrieval:
Product knowledge – Concern the various types of knowledge, meanings, and beliefs about products that are stored in consumers’ memories |
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General Knowledge
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Knowledge of something such as "this store is having a sale"
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Procedural Knowledge
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Knowledge such as "Service was poor, I will not leave a tip"
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Associative Network
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organize and link many types
of knowledge together (Think of an associative map) |
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Schemas
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Schemas contain mostly episodic and semantic
general knowledge |
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Scripts
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organized networks of procedural
knowledge |
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Levels of Product Knowledge
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– Brand
– Model – Product form – Product class |
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3 Types of Product Knowledge
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– Knowledge about the attributes or characteristics of products
– The positive consequences or benefits of using products – The values the product helps consumers satisfy or achieve |
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Perceived Risks
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the undesirable consequences that consumers want to avoid when they buy and use products
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Means-End-Chain of Product Knowledge
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Four levels of means-end chain
– Attributes – Functional consequences – Psychosocial consequences – Values |
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ZMET (Zaltman Metaphor Elicitation Technique)
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involves the following
steps: • The pre-interview instruction • Storytelling • Sensory images • Vignette • Digital image |
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Involvement
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Consumers’ perceptions of importance or
personal relevance for an object, event, or activity |
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Construct
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The subjective properties of an object (attitudes, intentions, feelings, etc...) that are measured
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Indicators
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Identifiable and measurable components which are associated with a particular construct, that are discovered through asking particular questions of the respondent
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Types of Construct Measurement
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Reflective and Formative
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Reflective Construct Measurement
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-From Construct to Indicator
-Change in indicator does not lead to change in construct -Change in construct leads to change in indicators -Indicator is manifestation of Construct -Indicators are interchangeable -high correlations among indicators |
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Formative Construct Measurement
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-From indicator to Construct
-Change in indicator does lead to change in Construct -Change in Construct does not lead to change in Indicators -Indicator defines construct Indicators are not necessarily interchangeable -No requirements regarding the correlation between indicators |
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Typical Constructs
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Service quality
• Brand/Customer loyalty • Image • Attitudes (e.g. satisfaction, trust) • Repurchase intentions • Intentions to recommend company to others • Personality traits of consumers (e.g. risk taking, self efficacy) • Perceptions regarding an employee’s organizational commitment • Perceptions regarding an employee’s customer oriented behavior |
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Systematic Measurement Error
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Affects the deviation of the observed score from the true score in a constant way
• Stable factors that cause the same difference between observed score and true score everytime the measurement is made |
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Random Measurement Error
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• Affects the difference between the observed score and the true score in a non-constant way
• So every time I make the same measurement the deviation between the observed and true score differs. |
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Reliability
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Extent to which a scale produces consistent results if repeated measurements are made (you compare multiple measurement on a single object)
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Internal Consistency Reliability
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Indicators are measured for consistent results when they reflect the construct. This information id used to make Split-Half Reliability.
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Split-Half Reliability
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The scores for the indicators are split into 2 groups and summed. The two sums are then compared to measure internal consistency of indicators.
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Content Validity (face validity)
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Evaluation of whether the content of the measurement instrument is suitable for the task at hand.
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Criterion Validity
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The extent to which the measurement instrument performs as expected in relation to other variables as meaningful criteria.
In other words, is this the most effective measurement instrument I can use? |
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Construct Validity
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Does the measurement instrument measure the construct that it is meant to measure?
Derived by examining a constructs convergent, discriminant, and nomological validity. |
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Convergent Validity
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Extent to which the measurement instrument correlates positively with the results of other measurement instruments that aim to measure the same characteristic.
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Discriminant Validity
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Extent to which a measurement instrument does not correlate with measurement instruments which assess contructs that are supposed to be different.
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Nomological Validity
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The extent to which the construct is related in theoretically predicted ways to other contructs that are different but related.
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Reliability and Validity
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-Reliable instruments are not always valid
-Valid Instruments are always valid (Think of the target example, where a reliable instrument can be consistently placing all the dots invalid, while a valid instrument always places the dots in the valid area) |
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Scaling
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Creating a scale for the results of the measurements. Scales can come in many forms.
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4 Types of Scales
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• Nominal
• Ordinal • Interval • Ratio |
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Nominal Scaling
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Are you Male Female
In our data set we then would express these answers as 1=male and 2=female In which country do you live? Belgium Germany The Netherlands Other country In our data set we then would express these answers as 1=Belgium; 2=Germany; 3 = The Netherlands; 4 = Other |
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Use of Nominal Scaling
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Classification and Identification
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Ordinal Scaling
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Ranking system (rank the following 5 objects 1-5)
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Interval Scaling
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Describing amounts of properties
Express distances between objects (ex. Rate your satisfaction from 1-7) (ex. Likart scale from totally disagree-totally agree) |
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Ratio Scaling
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Ex.
What is your age? Scale 1 ○ < 20 years; ○ 20-30 years; ○ 31-40 years; ○ > 40 years Scale 2 ________ years |
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Variations in Attention
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• Preconscious attention
– Highly automatic, unconscious level – “I see an add without knowing it” • Focal attention – Controlled conscious level – “Conscious of paying attention to the add” “Cognitive and affective systems respond to all stimulus that receive some level of attention” |
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Comprehension
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Interpretation processes by which
consumers understand or make sense of their own behavior |
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Salient Beliefs
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Beliefs about something that are activated. This is the only type of belief (activated) that affects attitude.
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Martin Fishbein's Model
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Attitude is made up of two parts:
-Salient beliefs about a product -evaluation of those beliefs (ex. 7 up is an all natural soda with no caffeine and a lemon-lime flavor. I give positive importance to the first two, but a small, negative score for the lemon lime flavor.) |
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Theory of Reasoned Action
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Any reasonably complex voluntary behavior
is determined by the person’s intention to perform that behavior |
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Satisfaction
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The consumer is satisfied if the chosen product seems superior to the rejected product
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Integration
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the key process by which knowledge is combined to evaluate two or more alternative behaviors and select one
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5 stages of decision making
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– Problem recognition: “I need a new car”
– Search for alternative solutions (dealers, salespeople) – Evaluation of alternatives – Purchase (I sign, I pay) – Postpurchase use and reevaluation of chosen alternative |
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Consideration Set
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A subset of all possible alternatives
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Surveying
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The use of structured questionnaires given to a sample of a population
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3 types of surveying
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Telephone
Personal Self-Administered (online/mail) |
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Stage 1 of a questionnaire
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Specify the information needed:
All information needed for hypotheses should be included |
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Stage 2 of of a questionnaire
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Specify Interviewing Method
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Stage 3 of a Questionnaire
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Content Individual Questions:
Questions should be straightforward and aid in recall (i.e. instead of asking what magazine they read last month, give them a list and ask them to select) Avoid asking double barreled questions “Carrefour is cheap and well-equipped” ask two separate questions “Carrefour is cheap” and “Carrefour is well equipped” |
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Stage 4 of a Questionnaire
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Wording of Questions:
Don't use ambiguous words Use simple language Avoid leading questions Use both positive and negative statements |
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Stage 5 of a Questionnaire
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Scales for Questions
-open questions -multiple choice (includes, choose all that apply) -dichotomous (yes/no) (no measurement of intensity) -scale |
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Stage 6 of a Questionnaire
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Order of Questions
From general to specific (Flowerpot method) |
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Stage 7 of a Questionnaire
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Layout, Reproduction, Pretest
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Stages in the Purchase Sequence
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– Information contact
– Funds access –Store contact –Product contact – Transaction – Consumption and Disposition – Communication |
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Operant Conditioning
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: Process of altering the probability of a
behavior being emitted by changing the consequences of the behavior |
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Discriminative Stimuli
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Presence or absence of certain stimuli that
can serve to change the probabilities of behavior |
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2 strategies that influence consumer
behavior |
Sales Promotion
Social Marketing |
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Observation
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The recording and counting of behavioral patterns of people, objects, and events in a systematic manner to obtain information about the phenomenon
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Structured - Unstructured Observation
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• Observation of clearly pre-defined behaviors and details on how to measure these.
• Observation all relevant phenomena without specifying details in advance |
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Disguised - Undisguised Observation
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• Disguised, people are unaware about being observed
• Undisguised, people know what they are being watched |
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Natural - Contrived Observation
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• Observing behavior as it takes place in its “natural” environment
• Observing behavior in an artificial environment (laboratory setting) |
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Electronic Observation
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Electronic devices rather than humans are used to observe the relevant
phenomena. Ex of electronic devices: AC Nielsen audimeter, bar codes, loyalty cards,… |
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Audit
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Collection of data by examining physical records or performing inventory analysis. Usually involves counting.
• Example is the pantry audit which involves taking the inventory of brands, quantities etc. in consumers’ homes (often in combination with a personal interview). |
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Content Analysis
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Objective, systematic and quantitative description of the manifest content of a communication (e.g. newspaper articles, radio programmes)
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Trace Analysis
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Data collection is based on physical traces or evidence of recent behavior.
Examples include: fingerprints, brands of cars in a parking lot, cookies on the web. |
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Concomitant Variation
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Extent to which a cause (X) and an effect (Y) vary / occur together as predicted.
For example: banks with a satisfactory level of service will also have a satisfactory retention of consumers + vice versa |
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Time Order of Occurrence
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A causing event must occur either before or simultaneously with the effect. It cannot occur afterwards.
For example, for amount of advertising to be a causal factor for sales increase, the number of advertising should be increased before the sales increase is evidenced. |
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Causality
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Causality applies when the occurence of X increases the probability of the occurrence of Y. Three conditions must be met before one can infer causality
1. Concomitant Variation 2. Time Order of Occurrence 3. Elimination of other possible causal factors |
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Extraneous Variables
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All variables other then the independent variables that have an effect on the dependent variable. These variables can distort the empirical findings regarding the
causal effect between X and Y. |
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Internal Validity
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Accuracy of the experiment. Addresses the question whether the manipulations actually cause the intended effect. Or alternatively, are the extraneous variables
controlled for. |
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External Validity
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Refers to whether the findings of the experiment can be generalized beyond the research setting to a wider population.
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Sampling
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The selection of a small number of elements from a larger defined target group of elements and expecting that the information gathered will allow statistical inference
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Statistical Inference
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The process of generalizing the sample results to a target population
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Sampling Frame
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A list of the elements of the target population, or
Set of directions for identifying the target population |
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Non-Probability Sampling
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Sampling techniques that do not use chance selection procedures. Selection of elements relies on the personal judgment of the researcher.
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Convenience Sampling (Non-Probability)
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• Selection of elements to the convenience of the researcher
• Respondents happen to be “at the right place at the right time” • Assumes a homogeneous target population • Cheap and fast • Selection bias may play an important role • Not suitable for marketing research projects requiring the need to draw inferences about a population. Can be used for exploratory research and the pretesting of questionnaires. |
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Quota Sampling (Non-Probability)
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The purpose is to provide assurance that pre-specified subgroups are represented in the sample
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Snowball Sampling (Non-Probability)
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• Initially a few respondents meeting the target population characteristics are being asked.
• After each the interview each of the previously mentioned respondents is asked to identify others who also belong to the target population. • By obtaining referrals from referrals a snowballing effect occurs • Especially useful when characteristics are involved that are relatively rare in the wider population. |
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Probability Sampling
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Sampling procedure is which each element has a known fixed probabilistic chance of being selected for the sample.
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Simple Random Sampling (Probability)
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Each element in the target population has a known and equal probability of being selected.
-Each possible sample consisting of n elements has an equal selection probability -Selection of an element is independent of the selection of other elements -Comparable to a lottery system -Hardly used in practice |
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Systematic Sampling (Probability)
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• Selection of random starting point and subsequently selecting every i-th element in succession from the sampling frame.
• Interval i is determined by dividing the population size N by the desired sample size n. • Systematic sampling is usually easier and cheaper to conduct than SRS • Not the right method when cyclical patterns! |
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Stratified Sampling (Probability)
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Two step process which aims to increase sampling efficiency by increasing the precision of the estimates
-First step: population is divided in mutually exclusive and collectively exhaustive strata (each element can only be included in one stratum and no element should be omitted) -Second step: from each stratum elements are selected using SRS |
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The Environment
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All physical and social characteristics of a
consumers’ external world |
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Macro Environment
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• Climate
• Economic conditions • Political system • General landscape |
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Micro Environment
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• Tangible physical and social aspects of immediate surroundings
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Culture
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The meanings that are shared by most
people in a social group |
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Sub-cultures
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Distinctive groups of people in a society that
share common cultural meanings for Age Gender Income etc... |
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Acculturation
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refers how people in one culture or subculture understand and adapt to the meanings of another culture or subculture
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4 stages of Acculturation
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Honeymoon
Rejection Tolerance Integration *learning the new language is a key component |
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Reference Group
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A group consists of two or more people who
interact with each other to accomplish some goal • Involves one or more people used as a point of reference in forming affect, cognition and behavior |
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3 types of Reference Groups
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Informational
Utilitarian Value-Expressive |
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Consumer Socialization
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Refers to how children acquire knowledge about products and services and various consumption-related skills
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Frequency Distribution
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Objective: obtain count of number of responses associated with different values of the variable
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