MARK3001 Lecture 7 Outline of Last Lecture I. Marketing ResearchA. STEP 2 – Plan Research Designa. Questionnaire Issues- Types of question- Ordering of questions- Wording of questionsa. 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 _ _ _ AwfulHealthy_ _ _ x _ _UnhealthyOld_ _ _x_ _Fresh iii. Projective Technique“If a Wendy’s burger could talk to a McDonald’s burger, what would it say?”b. Questions to avoid:i. Leading Questions – worded and designed to make the person feel as if they should answer a certain wayii. 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 questionsc. Sampling Issues: i. Who is the population?ii. What will be used for the sampling frame?d. 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 representedii. Non-Probability Sample – not statistically valid no attempt to be representativeA. STEPS 3 and 4 – Collecting and Analyzing Dataa. Often outsourced collectionb. Select appropriate statistical methodsB. STEPS 5 and 6 – Report and Follow Upa. Report:i. Concise statement of the research objectives and designii. Summary of major findings and recommendationsb. Follow Up:i. Were recommendations implemented? Did they work? Why orwhy not?II. Competitive IntelligenceA. Legally finding out what your competitor is doingIII. Consumer BehaviorA. How we buy:i. Determined by purchase involvementB. Low Involvement Purchases:i.Characteristics of low involvement purchases:ii.Types of buying processes used:1.Routine response behavior/habitualiii.How marketers try to influence:2.In-Store promotion3.Link to high involvement issueC. High Involvement Purchases:i.Characteristics of high involvement purchasesOutline of Current LectureI. Extended High-Involvement Decision-Making ProcessA. Need RecognitionB. Information Searcha. Internal Information Searchb. External Information Searchc. Evoked setC. Evaluation of AlternativesD. PurchaseE. Post-Purchase Behaviora. Cognitive Dissonancei. Buyer reduces it by…ii. Seller reduces it by…iii. ExampleII. Factors that Influence Consumer BehaviorA.Culturala.Definition of cultureb.Culture is…c.Definition of subculturei.Example: SEC football culture vs. Big 10 football cultureB.Sociala.Social Classi.Upper class, middle class, and lower classb.Reference groups:i.Membership ii.Aspirational iii.Dissociativec.Family:i.Consumer socialization process ii.Varied roles C.Individuala.Demographics:b.Personality and Self-concepti.Definition of personalityii.Definition of self-concept D.Psychologicala.Perceptioni.Definition of perceptionii.Selective perception:1.Selective Exposure/Attention 2.Selective Distortion3.Selective Retentionb.Motivationi.Maslow’s Hierarchy of Needs1.Self-Actualization2.Esteem Needs 3.Social Needs 4.Safety Needs5.Physiological Needs c.Learningi.Experiential Learningii.Conceptual Learningd.Beliefs and Attitudesi.Definition of beliefs and attitudesIII. Segmentation and Target MarketingA. Segmentationa. Definitionb. Process of segmentation:i. Step 1ii. Step 2iii. Step 31. PositioningB. Segmentation Basesa. Demographici. Divides consumers by…b. Psychographici. Divides consumers by…c. Geographici. Divides consumers based location1. City vs. Rural2. North vs. South3. East Coast vs. Midwest4. Mountain vs. Beach5. And many others…d. Benefit Segmentationi. Divides consumers by…ii. Example1. Group 12. Group 2e. Usage Rate Segmentationi. Dividing a market ii. ExampleC. Segmentation Profilea. Defintionb. ExampleD. Two questions to ask when dealing with segmentationa. Question 1b. Question 2c. If no segments exist:i. Undifferentiated Targetingd. If segments do exist:i. Multi-segment/Differentiated Targeting: 1. Cannibalization2. The marketing mix would look like this…CCC CCC CCC CCCCC CC CC CC Mix 1 Mix 2 Mix 3 Mix 4ii. Concentrated/Niche Targeting: 1. Definition2. Exampleiii. One-to-One Targeting:1. Definition2. ExampleCurrent Lecture I. Extended High-Involvement Decision-Making ProcessF. Need Recognitiona. 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 stateG. Information Searcha. Consumer collects data to help them make a reasonable decisioni. 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 familyb. 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 extentH. Evaluation of Alternativesa. The consumer narrows down and rates possible choicesb. Consumer uses evaluative criteria such as - when buying a car – safety, cost, performance, gas mileage, etc.I. Purchase1st time driversSoccer moms MaleSuccessfulOld PeopleJ. Post-Purchase Behaviora. Most consumers will second guess after they purchaseb. They compare the outcomes to their expected resultsc. Cognitive Dissonance: post-purchase doubti. Buyer reduces it by focusing on positives about the choice they did make, and remembering the negatives about the choice they didn’t makeii. 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 BehaviorE.Culturala.Culture: the set of values, norms, and/or symbols that shape behavior and which are generally passed from one generation to the nextb.Culture is learned, functional, pervasive (part of every part of our lives), and