M L 4201 Spring 2013 Consumer Behavior Dr Rebecca Naylor Exam 1 Review Sheet Key Topics from Chapter 1 Understanding Consumer Behavior Definition of Consumer Behavior Reflects the totality of consumers decisions with respect to the acquisition consumption and disposition of goods services time and ideas by human decision making units over time Types of acquisition deciding to buy a product deciding between brands where to buy how to pay other ways to acquire Types of consuming how you use store product who uses the product how much you consume how product consumption compares with expectations Types of disposition how you get rid of unwanted product how much you throw away after use reselling products how you recycle products A product service activity or idea offered by a marketing organization to What is an offering consumers What affects consumer behavior see text for discussion of the psychological core the consumer s culture the process of making decisions and consumer behavior outcomes Key Topics from Enrichment Chapter Developing Information about Consumer Behavior How to study consumer behavior Not with intuition use a scientific approach Common mistake use of intuition common sense Primary vs secondary data Primary Secondary collected specifically for current purpose could be internally or externally collected ex experiments test markets focus groups surveys observations interviews etc collected for some other purpose external census Gallup polls etc internal company records sales data advantages time savings low cost disadvantages may be out of date definitions or categories might not be what you re looking for might not be specific enough for your project collect secondary data first then turn to primary data Exploratory consumer research depth interviews focus groups observational research Purpose of exploratory research is to understand attitudes and not to measure them don t generalize Depth interviews Conducted face to face with one respondent with the objective of exploring the subject matter in detail Interview method Directiveness and structuredness vary deeper interviewing techniques laddering why is that important to you ZMET pictures illustrating thoughts and feelings about a product Projective techniques Rorshach test brand personification third person techniques Focus groups Group of respondents discuss a marketing problem by responding and reacting to each other Interviewing method Trained interviewer develops a discussion guide Usually 6 12 participants Flexible interviewing technique chain reaction Devil s advocate false termination A little cheaper but still expensive Famous products have failed in focus groups sometimes people reject innovative ideas Observational No talking Making observations of behavior and recording those observations in an objective manner Natural e g home store vs artificial e g lab settings Most useful when investigating complex social settings less useful for studying well defined hypotheses under specific conditions ZMET Experiments and types of variables Objective test hypotheses about causal relationship between variables Look at effect of independent variable the variable you manipulate or change on dependent variable the variable you re interested in measuring Different groups of consumers get different treatments different versions of independent variable Helps determine causality elements of experiments requirements to establish causality control manipulate the cause independent variable and hold everything else constant the cause independent variable has to precede the effect random assignment makes experimental groups statistically equivalent 3 factors necessary for causation correlation temporal antecedence variable that is cause has to happen before the variable that is an effect no third factor driving both your supposed cause and effect sometimes called a lurking variable Key Topics from Chapter 2 Motivation Ability Opportunity Motivation What is it When is it enhanced Energy directed at objects or activities Enhanced when Goals are at stake risky situations physical financial psychological Information is moderately inconsistent with our prior attitudes Our needs are unsatisfied Something is personally relevant Motivation is a driver of almost everything we study in CB Definition and characteristics of needs Need discrepancy between present actual state and ideal desired state Ideal states can be emotional or physical Discrepancy creates tension Drive the larger the discrepancy the more urgency felt to reduce tension greater motivation Strength of a motivation Characteristics of needs Dynamic Exist in hierarchy Can be internally or externally aroused Goals can conflict with each other Needs vs wants CB definitions Want particular form of consumption used to satisfy a need Specific route to drive reduction culturally and individually determined Maslow s hierarchy of needs Helpful to marketers because it reminds us that consumers have different priorities in different situations and in different stages in their lives From bottom of triangle to top Physiological needs food water shelter oxygen Safety needs freedom from harm financial security insurance Social needs friendship belonging love Facebook Personal needs status respect prestige BMW Tiffanys Self actualization needs self fulfillment travel volunteering Means End Chains Laddering Used to gain insight in consumer values Useful for product development and communication especially since consumers are not always aware of what is driving their own behavior Laddering basically asking interviewee why multiple times Mean end chain result of laddering a knowledge structure that links consumers knowledge about product attributes with their knowledge about consequences and values Attributes consequences values Ex Gillette Fusion Brand Gillette Fusion Attributes 5 blades Values be attractive Functional consequences close shave Psychological consequences feel well groomed Why do firms need to understand consumers needs Segment on needs Develop need satisfying offerings Use needs in marketing communications Communicate how your product service can fulfill consumer needs and goals consistent with higher order values Identify unfulfilled needs recognize new opportunities Monitor changes in consumers needs including what they consider a plausible ideal state Influence consumers need recognition Need Recognition Occurs when consumer sees difference between perceived actual