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223 Cards in this Set
- Front
- Back
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Marketing Research
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the process of planning, collecting and analyzing data relevant to a marketing decision
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Who does marketing research
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-producers of products and services
-advertising agencies - marketing research companies |
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Primary Data Advantages
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-answers a specific research question, data are current, source of data is known, secrecy can be maintained
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Qualitative research
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depth interviews, focus groups, projective techniques, metaphor analysis
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Depth interview
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on-on-one, 20 min-1 hour, nonstructured, interviewer will often prove to get more feedback, session is usually recorded
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Focus group
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8-10 participants, respondents are recruited through a screener questionnaire, lasts about 2 hours, always taped, online groups are growing
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Quantitative research
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observation, experimentation, survey questionnaires
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Observational research
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helps marketers gain an in-depth understanding of the relationship between people and products by watching them buying and using products
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Causal Research
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used to establish cause-and-effect relationships between variables
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How are experiments controlled?
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usually with only some variables manipulated at a time while others are held constant
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Where are test markets conducted?
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a single market area
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where are experiments conducted
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laboratories or in the field
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What are the different kinds of scales?
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likert, semantic differential, behavior intention, rank-order
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likert scales
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asked to agree or disagree with a statement, easy to prepare and interpret, simple for consumers
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semantic differential scales
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includes bipolar adjectives, relatively easy to construct and administer
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behavior intention scales
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measures likelihood consumers will act a certain way, easy to construct and administer
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rank-order scales
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items ranked in order of preference in terms of some criteria
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Secondary Data
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Data that has been collected for reasons other than the specific research project at hand, includes internal and external data
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Sources of Secondary Data
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internal corporate information, government agencies, trade and industry associations, business periodicals, news media
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Advantages of Secondary Data
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saves time and money, aids in determining direction for primary data collection, pinpoints the kinds of people to approach, serves as a basis of comparison for other data
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Disadvantages of Secondary Data
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may not give adequate detailed information, may not be on target with the research problem, quality and accuracy of data may pose a problem
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Sensory Marketing
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marketing that engages the consumers' senses and affects their perception, judgment and behavior
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What can sensory marketing be used to create from a managerial perspective
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subconscious triggers that define consumer perceptions of abstract notions of the product (e.g. sophistication, quality, innovativeness ) - the brands personality
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What can sensory marketing be used to create from a research perspective
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sensory marketing implies an understanding of sensation and perception as it applies to consumer behavior
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Sensation
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the immediate and direct response of the sensory organs (eyes, ears, nose, mouth, and fingers) to basic stimuli (light, color, sound, odor, texture)
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Perception
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the process by which sensations are selected, organized and interpreted
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Perception Definition
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a consumer's awareness and interpretation of reality, it is a three-stage process that translates raw stimuli into meaning
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Exposure
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exposure occurs when the opportunity exists for one or more of the five senses to be activated by the stimulus, referred to as OTS or "opportunity to see" and ad
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Attaining Exposure
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media advertising, point of purchase, product placement
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Why are reference points key?
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people are not good at perceiving absolute levels, human mind detects "how much" only compared to " compared to what", reference points become important to understand how stimuli are interpreted and perceived
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Vertical-Horizontal Illusion
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Both lines are the same length, most think the vertical line is 18-21% longer.
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Implication of Vertical-horizontal illusion
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taller packages seem like they contain more product than shorter packages
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Mindless Eating
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eat 25% more when food is served on larger plates, food coloring to each 10th chip reduces consumption in 1/2, perception of variety causes people to eat more
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Marketing implications of vertical-horizontal illusion, mindless eating etc.
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marketers should be as interested in the context (stimulus seen alone or with others) as they are in the stimulus itself (absolute quality or value)
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Examples of marketing implications of vertical-horizontal and mindless eating
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prices are often evaluated in reference to price of other brands and regular vs sale price, attributes are evaluated in reference to attribute levels across brands
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Hearing implications
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companies choose music congruent with their brand identity
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When a sound is worth a thousand words
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more companies are discovering that the sound a product makes can convey subtle information about its quality and influence purchasing decisions
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Categories for strategies of using scent for products
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1. product scenting
2. environmental scenting 3. advertising scenting |
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Haptic Sense
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researchers have found that touching a product increases their confidence in the item's quality, shoppers who touch a product are more likely to purchase, even as it relates to impulse buys
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Tasting
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people who tried the flavor strips, 59% said they were more likely to purchase welch's grape juice after interacting with the ad
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Absolute threshold
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the minimum amount of stimulation that can be detected on a given sensory channel
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Differential threshold
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ability of a sensory system to detect changes or difference between two stimuli
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J.N.D. (just noticeable difference)
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minimum difference between two stimuli is the JND
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Weber's law and JND
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recognizes that perceptions of change depend on both the amount of change and the initial starting point prior to change. Expresses the relationship between a change in the intensity of a physical stimulus and a change in sensation
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Weber's Law
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"will a change in a marketing stimulus (e.g. price) be perceived by consumers?" further suggests that the amount of change necessary for someone to notice a change depends on the initial starting point
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Weber's law and price
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for price increase: price changes should be smaller than jnd
for price discounts: price changes should be equal to or exceed jnd |
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Marketing applications of the JND
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Relevant JND for marketers so that
-negative changes are not readily visible to the public -product improvements are very apparent to consumers |
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JMD (just meaningful difference)
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represents the smallest amount of change in a stimulus that would influence consumer consumption and choice
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What do we perceive?
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in marketing, better to think about this as the JMD than the JND
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Subliminal Perception
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occurs when stimulus is below the level of the consumers' awareness. Rumors of subliminal advertising are rampant - though there's little proof that it occurs
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Subliminal techniques
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1. embeds
2. subliminal auditory perception |
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Embeds
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figures that are inserted into magazine advertising by using high-speed photography or airbrushing
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subliminal auditory perception
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sounds, music or voice text inserted into advertising
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Stimuli Organization
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people organize stimuli into groups and perceive them as whole, this is referred to as Gestalt which means pattern in German
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Stimuli Organization Principles
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1. figure and ground
2. grouping 3. closure |
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Figure and Ground
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people tend to organize perceptions into figure-and-ground relationships, the ground is usually hazy, marketers usually design so the figure is the noticed stimuli
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Grouping
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people group stimuli to form a unified impression or concept, grouping helps memory and recall
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Closure
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people have a need for closure and organize perceptions to form complete picture, will often fill in missing pieces, incomplete messages remembered more than complete
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Stimulus Selection Factors
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size, color, position, novelty
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Interpretation
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refers to the meaning we assign to sensory stimuli, which is based on a schema
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Implications of point of purchase
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- >30,000 supermarket products
- consumers spend little time on brand choice - marketers need to use packaging, POP materials to draw attention to brand |
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Ways to Enhance Attention
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intensity, contrast, movement, surprise, size, involvement
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Product Positioning
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-Physical positioning
- Perceptual positioning |
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Physical positioning
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the physical properties of the product are used to create a message and appeal to a target market, as well as keep the product fresh in the consumer's mind
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Perceptual postitioning
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the seller focuses more on concepts rather than physical appeal
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Packaging as a Positioning Element
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packaging conveys the image that the brand communicates to the buyer (color, weight, image and shape are all important)
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Why might repositioning be necessary?
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increased competition and changing consumer tastes
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Positioning of Services
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image is a key factor for services, services often want a differentiated positioning strategy to market several different versions of their service to different markets
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Learning
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A process that consumers go through to develop knowledge that will help them in their decision making, a relatively permanent change in behavior caused by experience
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Learning processes
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-intentional
-incidental |
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Intentional learning
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learning acquired as a result of a careful search for information
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Incidental learning
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learning acquired by accident or without much effort
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What are the two major learning theories?
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- behavioral learning
- cognitive learning |
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Behavioral learning
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simpler forms of learning, based on observational behaviors (responses) that occur as the result of exposure to stimuli, classical conditional, instrumental (operant) conditioning
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Cognitive learning
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more complex form of learning, learning based on mental information processing, often in response to problem solving
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Studying Modern Day Pavlov's Dogs of the human variet
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the subjects reacted faster to the images paired with the food odors than other images that had no pleasant associations "the restaurant phenomenon"
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What is the key to using classical conditioning
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the key of using classical conditioning in marketing is that a favorable response is transferred from the US to the CS (i.e. the brand)
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Applications of Classical Conditioning
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1. repetition
2. stimulus generalization 3. stimulus discrimination |
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Repetition (classical conditioning)
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increases the association between the conditioned and unconditioned stimulus, slows the pace of forgetting, advertising wearout is a problem
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Advertising Wearout
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when too much repetition reduces advertising effectiveness
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Repetition with variation of a central theme
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using different ad executions that carry the same basic message can reduce ad wearout
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Stimulus generalization
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having the same response to a slightly different stimuli, helps "me-too" products to succeed
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When is stimulus generalization useful?
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product extensions, family branding, licensing
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Generalization of Brand Names
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imposter brand names can lead people to transfer the evaluations and attitudes they associate from one brand to another.
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Generalization in product packaging: private label brands
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"you want to tell the consumer that it's close to the national brand... you've got to make it look like, within the law, close to the national brand (in order to attract the consumer to the private label brand)" -drugstore exec
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Generalization of brand names - family branding/brand extension strategy
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leveraging a brand's success in one product category by expanding into a different one
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generalization in advertising
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"me-too" or imitator strategies
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Stimulus discrimination
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selection of a specific stimulus from similar stimuli, opposite of stimulus generalization, this discrimination is the basis of postitioning which looks for unique ways to fill needs
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Why is stimulus discrimination important?
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discrimination is important for companies trying to differentiate their products from other companies in order to be more competitive in the marketplace, it facilitates the creation of "unique" brand associations that can enhance a brand's image and therefore its equity
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Generalization vs. Discrimination
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which objective is desired will likely depend on their status in the market
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Market leaders want..
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stimulus discrimination
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low share "me-too" brands want..
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stimulus generalization
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Applications of instrumental conditioning
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customer satisfaction (reinforcement), reinforcement schedules, shaping, massed versus distributed learning
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Types of product reinforcement
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some products provide positive reinforcement, some products provide negative reinforcement, some products provide both positive and negative reinforcement
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Observational Learning (modeling or vicarious learning)
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A process by which individuals learn behavior by observing the behavior of others and the consequences of such behavior
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Short Term Memory
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where we encode or interpret incoming information in light of existing knowledge, short term memory used fo information processing e.g. to interpret an ad. Think of it as RAM for a computer - this is the scratch paper area where you work on stuff before saving it in the long term hard drive
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Characteristics of STM
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Limited and Short-Lived
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Limited STM
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can only hold a certain number of items in short term memory (7+/- 2)
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Short-lived STM
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unless transferred to long term store by trying to remember the information, it is lost
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Cognitive Miser
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coined by Fiske and Taylor (1984) - individuals frequently rely on simple and time efficient strategies when evaluating information and making decisions e.g. stereotypes, heuristics
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Long Term Memory LTM
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permanently stored knowledge, very large storage capacity, information may not be lost, but sometimes can't be found
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Permanently stored knowledge
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episodic (autobiographical) memory, semantic memory
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Long Term Memory- a network of associations
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when we encounter something, we code its features and associate those features together, when we encounter it repeatedly under a variety of conditions, some associations get strengthened
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Schema/Associative Network- how is memory organized?
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concepts, feelings and events are stored in "nodes", associative links (of varying strengths) connect the nodes, when one node is activated, this activation spreads along associative links toward related concepts
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Limited spreading (schema/associative network)
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stronger links will be activated first and be more likely to be activated
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Explicit memory
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characterized by the conscious recollection of an exposure event
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Implicit memory
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involves the non-conscious retrieval of previously encountered stimuli
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How Memory works
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memory is constructive, and can be reconstructive
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Key points about memory
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once a concept is activated, activation spreads to other concepts it is connected to, eventually a subset of features will turn on the network, when the concept/representation "turns on" we see it in "our minds eye"- we have the subjective experience of recalling from memory
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How companies can help consumers to remember-reminders
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advertising reminds consumers to buy a product, post cards remind consumers to make an appointment, retrieval clues placed on packaging and at the point of purchase enhance ad effectiveness
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Pictures (memory)
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memory for pictorial information is remarkably good, and typically better than that of verbal information
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Dual coding (memory)
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dual memory can improve consumer learning and memory leading to increased recall of both brand names and brand images
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Concrete Words and Dual Coding
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dual coding also suggests that it is easier to remember concrete words than abstract words, concrete can be both verbal and visual, abstract words can only be verbal
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Motivation
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the driving force within individuals that impels them to action - produced by a state of tension due to an unfulfilled need which leads to conscious/subconscious attempts to reduce the tension
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Need
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innate or learned desires
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Want
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personal and cultural factors combine to create a want - one manifestation of a need. the particular form of consumption used to satisfy a need is called a want
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drive
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degree of arousal
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goal
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the desired end state
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motivation (sub definition)
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strength and direction
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Biogenic need
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people are born with a need for certain elements necessary to maintain life e.g food, water shelter
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Psychogenic needs
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are acquired in the process of becoming a member of a culture e.g. status, power, affiliation etc.
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Maslow's Hierarchy of Needs
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physiological, safety, love/belonging, esteem, self-actualization
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Four Basic Premises for Maslow
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1. all humans acquire similar set of motives through genetic endowment and social interaction
2. some motives are more basic or critical than others 3. the more basic motives must be satisfied to a minimum level before other motives are activated 4. as the basic motives become satisfied, more advanced motives come into play |
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Need for Achievement
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value personal accomplishment, place a premium on products that slightly success
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Need for Affiliation
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want to be with other people, focus on products that are used in groups (alcohol)
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Need for Power
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control one's environment, focus on products that allow them to have mastery over surroundings (muscle cars)
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Need for Uniqueness
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assert one's individual identity, enjoy products that focus on their unique character (perfume, clothing)
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Motivational conflicts
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goal has valence (value): positive or negative, consumer will: approach positive goal, avoid negative goal
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Projective techniques
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designed to provide information latent motives, the science of selling
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Laddering
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involves a series of directed questions to identify linkages between attributes, consequences, and values
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Arousal of Motives
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physiological arousal, emotional arousal, cognitive arousal, environmental arousal
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Rational Motives
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implies that consumers select goals based on totally objective criteria, such as size, weight, price or miles per gallon
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Emotional motives
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imply the selection of goals according to personal or subjective criteria
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product involvement
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the consumer's level of interest in a product
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Levels of Involvement
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- low involvement: habitual decision
- some involvement: simple decision - high involvement: lengthy decision |
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Cult products
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command fierce consumer loyalty, devotion and worship
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Purchase Situation Involvement
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differences that occur when buying the same object for different contexts ex. boss and cousin you don't like
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Consumers Need for Uniqueness (CNFU)
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individuals with a high consumer need for uniqueness would more often engage in the consumption of products for purposes of classification rather than experience, integration or play
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Self-Discrepancy Theory
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states that people have the following three concepts of themselves
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Ideal self SDT
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this is the person who you would like to become, including reaching your highest goals
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Ought self SDT
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this is the person who you should be or ought to become
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Actual self SDT
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this is who you currently are
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What does the self-discrepancy theory state?
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people compare themselves to internalized standards called "self guides", these different representations of the self can be contradictory and result in emotional discomfort, self-discrepancy is the gap between two of these self-representations, people are motivated to reduce the gap in order to remove disparity in self-guides
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Interdependent Self-Concept
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based on the common Asian cultural belief in the fundamental connectedness of human beings, emphasizing family, cultural, professional and social relationships
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Independent Self-Concept
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based on the predominant Western cultural belief that individuals are inherently separate, emphasizing personal goals, characteristics, achievements and desires
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Extended Self
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individual: personal possessions
Family: residence and furnishings Community: neighborhood or town where you live Group: social or other groups |
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The Congruity Hypothesis
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suggests that consumers want to maintain consistency between their personality or self concept and the things they buy. Consumers with higher self-concepts should prefer brands with more favorable images, consumers with lower self-concepts should prefer brands with less favorable images
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Self consistency
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buying products and services that are consistent with who and what you think you are (actual self)
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self enhancement
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buying products and services that help build your self image and to express this new self concept to others (ideal self)
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Managerial implications of self-concept
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enhancing consumers' self-consumers
appealing to self-consistency goals |
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Masculinity (gender-role orientation)
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independence, toughness, aggressiveness, competitiveness, achievement, rebellousness
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Femininity
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tenderness, sensitivity, dependence, compliance, cooperation
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Self-concept
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the informational side of things, where you know facts about what you are like
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self-esteem
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how you feel about those things you know
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Why are women so much more self-critical than men?
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research shows that men generally have a much more positive body-image than women, women are continually bombarded with images of the "ideal" face and figure - the "official body"
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Two ways to segment consumers
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who: demographics
why: psychographics |
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Demographics
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age, gender, marital status, social class and income, race and ethnicity, geography
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Psychographics
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values, personality, lifestyles. The way we feel about ourselves, the things we value, the things we do in our spare time
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Lifestyles
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refer to the ways consumers live and spend their time and money - useful in identifying viable market segments
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AIO statements
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Activities, interests, and opinions
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Lifestyles - Marketing Implications
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the greater understanding of customers allows marketers to employ lifestyle marketing
- consumers are segmented based on psychographic or lifestyle categories - products and services are positioned by relating their usage to the everyday experiences of target consumers |
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VALS
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Values and Lifestyles, classifies consumers into eight segments based on resources available (financial, educational, intellectual) and primary motivations (ideals, achievement and self-expression)
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VALS2 Segments
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innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors
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innovators
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top success, outward looking
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thinkers
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mature, satisfied, comfortable, practical
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achievers
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career-oriented, risk-averse, prestige products
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experiencers
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young, impulsive and risk loving
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believers
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strong principles, brand loyal
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strivers
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like achievers but still on way up
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makers
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action-oriented, self-sufficient
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survivors
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just meet immediate needs
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What is the PRIZM -Geo-lifestyle underlying logic?
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people with similar cultural backgrounds, means and perspectives naturally gravitate toward one another, they choose to live amongst their peers in neighborhood offering..compatible lifestyles, they exhibit shared patterns of consumer behavior toward products, services, media and promotion
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Importance to consumer behavior
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consumers decide which brand to buy or which store to shop at on the basis of their attitudes-attitudes and behavior are "linked"
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The predictive value of attitudes
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using attitudes to predict behavior
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alternatives for predicting consumer behavior
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past behavior: have they bought that brand before?
current attitude: how do they currently feel about buying our brand? |
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Predicting success of new products
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NPD is costly
NPD is risky |
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concept testing for a new product (predicting success)
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concept testing for a new product, give consumers exposure to the new product: product descriptions, prototype testing, "virtual" product testing. Assess consumer attitudes to the product, make strategic decision based on attitudinal data
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What are some reasons why consumers don't buy our products?
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unfavorable attitude toward the product
-find out why -improve product -communicate improvements - favorable attitude, but too expensive: cut price, run price promotion or if it is safety, convey the issues |
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The Diagnostic Value of Attitudes
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with additional data, we know more precisely what is causing consumers not to buy our product, what about sales data?
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What are Attitudes?
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attitudes are a learned predisposition, have consistency and occur within a situation
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The attitude "object"
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anything toward which one has an attitude
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ABC model of attitudes
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three components:
-Affect -Behavior(conative) -Cognition |
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Affect (ABC)
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the way a consumer feels about an attitude object - "I really like my iPad"
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Behavior (ABC)
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consumers' intentions to do something with regard to an attitude object - "i always buy Apple products"
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Cognition (ABC)
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beliefs a consumer has about an attitude object - "my iPad helps me to study"
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Importance of creating attitudes
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managing marketing mix to create favorable attitudes
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Multiattribute Attitude Models
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Attitude models that examine the composition of consumer attitudes in terms of selected product attributes or beliefs
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A^o (Fishbein)
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attitude toward the object
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B^i (Fishbein)
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belief about relationship between brand and attitude
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e^i (Fishbein)
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the evaluation of attribute i (outcome)
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n (Fishbein)
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the number of salient or "important" attributes
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good attributes (Fishbein)
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attributes with e > 0, strategy: increase b level
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bad attributes (Fishbein)
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attributes with e <0, strategy: decrease b level
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Changing Beliefs for Competing Brands
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changing beliefs for competing brands to decrease the positivity of attitudes for their brands
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Changing evaluations
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if your brand is viewed as "better" than another brand on a particular attribute, then increase the importance of desirability of that attribute
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Adding new attributes that are Salient
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basic idea: create positive attitudes that only we have
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theory of reasoned action
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includes cognitive, affective, and behavioral/conative components. Includes subjective norms in addition to attitude
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Benefits of Multi-Attribute Analysis
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identifies strengths and weaknesses of our product from the company's perspective, reveals how consumers perceive our product attributes relative to competition, allows an a priori assessment of the potential impact of attitude change strategies
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Limitations of Multi-Attribute Analysis
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provides little indication of how easy a particular attitude change strategy might be, no guidance on how to execute the strategy
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Why is it important to study attitudes?
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presumably, attitudes are stronger predictors of actual behavior, but does scientific research support this claim?
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Factors that influence whether attitude and behavior will be consistent
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-how strong the attitude is
-how easily it comes to mind -the situation we are in - our personal belief that we can actually perform the behavior associated with the attitude |
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Situational constraints when attitudes predict behavior
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-factors that prevent us from expressing attitudes in over behavior
-situations where we must be polite -places where we are expected to be quiet, respectful -situations where it is important for us to make a certain impression |
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Aspects of Attitudes: Attitude origins
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-attitudes formed on the basis of direct experience are more likely to influence behavior
-attitudes with these origins are stronger and more accessible |
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Attitudes: the role of strength
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-guidance choice
-persisting over time -coming to mind automatically -leading to inclusion in consideration sets |
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Persuasion
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attempts to change someone's attitudes, evidence suggests that attitudes are very stable and resistant to change
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Hovland's Three Component Model
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1. source: the communicator
2. message: the communication 3. target: the audience |
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What aspects of the communicator increase their persuasiveness?
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-credibility: expertise, trustworthiness, sincerity
-attractiveness: good looks, popularity, social value -speaks rapidly: rapid speech suggests expertise |
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Match-up hypothesis
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a source feature is most effective when matched with relevant products
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One-sided argument
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supportive arguments
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two-sided arguments
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both positive and negative information
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Attribute farming
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only a single attribute is the focus of the fram
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Goal farming
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message stresses either the positive aspect of performing an act or the negative aspect of performing an act
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Comparative Advertising
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message compares two recognizable brands on specific attributes
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Types of Message Appeals
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-emotional vs rational appeals
-sex appeals -humorous appeals -fear appeals |
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Easiest audience to influence?
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low/moderate self-esteem, younger age groups <25
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Elaboration Likelihood model (ELM)
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consumer attitudes are changed by two distinctly different routes to persuasion; a central route or a peripheral route
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ELM peripheral route
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relies on heuristic processing: mental shortcuts (rules of thumb): low cognitive effort e.g. "experts can be trusted"
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ELM Central route
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requires more cognitive effort
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Central vs. Peripheral routes
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decision to use central vs peripheral depends on our mental capacity and our motivation
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When do we use the central route?
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-we are knowledgeable about the subject
-we have sufficient ability/time to engage in careful thought -we are highly motivated -issue is important to us |
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High involvement of ELM
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increases likelihood of central processing e.g. message scrutiny, decreases reliance on credibility (peripheral cue)
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Low involvement of ELM
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increases likelihood of peripheral processing
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Heuristic Processing in pharmaceutical ads
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a majority of ads for pharmaceutical manufacturers replied on emotional appeals to attract consumers
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