MARK3001 Lecture 7 Outline of Last Lecture I Marketing Research A STEP 2 Plan Research Design a Questionnaire Issues a b c d Types of question Ordering of questions Wording of questions Common types of questions i Likert Scale Wendy s Food was Excellent Strongly Disagree Disagree Uncertain Agree Strongly Agree ii Semantic Differential The food at Wendy s was Excellent x Awful Healthy x Unhealthy Old x Fresh iii Projective Technique If a Wendy s burger could talk to a McDonald s burger what would it say Questions to avoid i Leading Questions worded and designed to make the person feel as if they should answer a certain way ii Loaded Questions Do you agree that we should lengthen prison times so that vicious awful criminals can t get out and kill innocent good people iii Double Barreled Question Athens is a CLEAN and FRIENDLY city iv Jargon or Inappropriate terminology Example Do you believe the FED should adjust the discount rate v Ordering of questions Sampling Issues i Who is the population ii What will be used for the sampling frame Types of Samples These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute i Probability Sample statistically valid every element in population universe has known probability of being selected 1 Stratified Random generally used when you have group with characteristics of interest that are not all equally represented ii Non Probability Sample not statistically valid no attempt to be representative A STEPS 3 and 4 Collecting and Analyzing Data a Often outsourced collection b Select appropriate statistical methods B STEPS 5 and 6 Report and Follow Up a Report i Concise statement of the research objectives and design ii Summary of major findings and recommendations b Follow Up i Were recommendations implemented Did they work Why or why not II Competitive Intelligence A Legally finding out what your competitor is doing III Consumer Behavior A How we buy i Determined by purchase involvement B Low Involvement Purchases i ii iii Characteristics of low involvement purchases Types of buying processes used 1 Routine response behavior habitual How marketers try to influence 2 In Store promotion 3 Link to high involvement issue C High Involvement Purchases i Characteristics of high involvement purchases Outline of Current Lecture I Extended High Involvement Decision Making Process A Need Recognition B Information Search a Internal Information Search b External Information Search c Evoked set C Evaluation of Alternatives D Purchase E Post Purchase Behavior a Cognitive Dissonance i Buyer reduces it by ii Seller reduces it by iii Example II Factors that Influence Consumer Behavior A Cultural a Definition of culture b Culture is c Definition of subculture i Example SEC football culture vs Big 10 football culture B Social a Social Class i Upper class middle class and lower class b Reference groups i Membership ii Aspirational iii Dissociative c Family i Consumer socialization process ii Varied roles C Individual a Demographics b Personality and Self concept i Definition of personality ii Definition of self concept D Psychological a Perception i Definition of perception ii Selective perception 1 Selective Exposure Attention 2 Selective Distortion 3 Selective Retention b Motivation i Maslow s Hierarchy of Needs 1 Self Actualization 2 Esteem Needs 3 Social Needs 4 Safety Needs 5 Physiological Needs c Learning i Experiential Learning ii Conceptual Learning d Beliefs and Attitudes i Definition of beliefs and attitudes III Segmentation and Target Marketing A Segmentation a Definition b Process of segmentation i Step 1 ii Step 2 iii Step 3 1 Positioning B Segmentation Bases a Demographic i Divides consumers by b Psychographic i Divides consumers by c Geographic i Divides consumers based location 1 City vs Rural 2 North vs South 3 East Coast vs Midwest 4 Mountain vs Beach 5 And many others d Benefit Segmentation i Divides consumers by ii Example 1 Group 1 2 Group 2 e Usage Rate Segmentation i Dividing a market ii Example C Segmentation Profile a Defintion b Example D Two questions to ask when dealing with segmentation a Question 1 b Question 2 c If no segments exist i Undifferentiated Targeting d If segments do exist i Multi segment Differentiated Targeting 1 Cannibalization 2 The marketing mix would look like this CCC CC 1st time drivers Mix 1 ii iii CCC CC Soccer moms CCC CC Male Successful Mix 2 Mix 3 Concentrated Niche Targeting 1 Definition 2 Example One to One Targeting 1 Definition CCC CC Old People Mix 4 2 Example Current Lecture I Extended High Involvement Decision Making Process F Need Recognition a Consumer moves from their present state old car to their preferred state new car b External and Internal stimuli push consumer from present to preferred state G Information Search a Consumer collects data to help them make a reasonable decision i Internal Information Search your thoughts experiences etc ii External Information Search marketer controlled info ads objective third parties JD Power Kelly blue book etc and then friends and family b Evoked set the 3 or 4 companies that first come to your mind These are the companies that you have a relationship with to some extent H Evaluation of Alternatives a The consumer narrows down and rates possible choices b Consumer uses evaluative criteria such as when buying a car safety cost performance gas mileage etc I Purchase J Post Purchase Behavior a Most consumers will second guess after they purchase b They compare the outcomes to their expected results c Cognitive Dissonance post purchase doubt i Buyer reduces it by focusing on positives about the choice they did make and remembering the negatives about the choice they didn t make ii Seller reduces it for the buyer by doing things like calling and asking how are you enjoying your new car New stereo iii Ex get a card in the mail that says Welcome to the best car company in the world II Factors that Influence Consumer Behavior E Cultural a Culture the set of values norms and or symbols that shape behavior and which are generally passed from one generation to the next b Culture is learned functional pervasive part of every part of our lives and evolving c Subculture small group whose members share elements of overall culture as well as cultural elements unique to the group i Often based on demographics geographics religious beliefs and political beliefs ii Example SEC football