Marketing: 4-5

What is informational influence/social proof?

when they tell them same guests in that exact same room, went up to 60%. More similar, more likely to imitate. -social proof can be leveraged and used to increase consumer compliance -Definition: consumers are influenced by the information others provide and by how other people behave, especially when consumers are unsure how to behave -Informational influence strongest when: Similar people are doing it High uncertainty Product information is ambiguous or scarce -Acceptable types of behavior are unclear

What are the four types of buying behavior?

-Dissonance-reducing buying behavior occurs when consumers are highly involved with an expensive, infrequent, or risky purchase but see little difference among brands. -habitual buying behavior occurs under conditions of low-consumer involvement and little significant brand difference. -Consumers undertake complex buying behavior when they are highly involved in a purchase and perceive significant differences among brands. -Consumers undertake variety-seeking buying behavior in situations characterized by low consumer involvement but significant perceived brand differences. In such cases, consumers often do a lot of brand switching.

What is the "Need Recognition" in a consumer decision - making process?

-Occurs whenever a consumer recognizes a need (i.e., difference between the current state and the ideal or desired state) Internal cues External cues -Marketing helps consumers recognize an imbalance between present status and preferred state. -Most goals/needs can be reached and satisfied by a number of routes... Marketers: our products/services provide best chance to attain goal/fulfill needs

What are the four steps of the marketing research process?

1) Define problem and research objectives- what do we lack and want answers to *most important part* 2) Developing the research plan for collecting information 3) Implementing the plan and collecting/analyzing the data. 4) Interpreting and reporting the findings

What is A/B testing?

An experimental approach to web design which aims to identify changes to web pages that increase or maximize an outcome of interest (e.g., scheduling a test drive of a car, increasing the total purchase amount in a shopper's shopping basket). -Randomized experiment with two variations, A and B Companies experiment with everything from images on webpages to subject lines in email

What type of research objective is most suitable for obtaining conclusive answers to questions such as whether one ad would garner greater attention and recall than another, and whether the presence versus absence of $.0.50 coupons would make people more likely to buy the national brand? causal research exploratory research all of the above case analysis descriptive research

Causal research. A marketing research project might have one of three types of objectives. The objective of exploratory research is to gather preliminary information that will help define the problem and suggest hypotheses. The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. The objective of causal research is to test hypotheses about cause-and-effect relationships. For example, would a 10 percent decrease in tuition at a private college result in an enrollment increase sufficient to offset the reduced tuition? Managers often start with exploratory research and later follow with descriptive or causal research.

What is the single biggest determinant of social class? What are some other characteristics?

Components: Occupational prestige Stable over time and similar across cultures Single best indicator of social class Education Income Income per se is not often a good indicator of social class; it's the way money is spent and not how much is spent -Working class: sturdy and comfortable products (utilitarian terms) vs. style Less likely to experiment with new products -Affluent people: appearance/body image Good market segment for: Diet foods, gyms Modern furniture/apparel.

What are the internal and external aspects of an information search?

Consumer gathers information related to achieving their goals/fulfilling their needs Internal search - a passive approach to gathering information in which the consumer's own memory is the main source of information about a product External search - a proactive approach to gathering information in which the consumer collects new information from sources outside the consumer's own experience. Nonmarket controlled sources of information of external search deemed more credible.

In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses. exploratory analytic causal statistical descriptive

Exploratory. After the problem has been defined carefully, the manager and the researcher must set the research objectives. A marketing research project might have one of three types of objectives. The objective of exploratory research is to gather preliminary information that will help define the problem and suggest hypotheses

What are exploratory, descriptive, and causal research?

Exploratory: Gain background information/better understanding of the situation. Define research problem(s),Generate hypotheses Data is Small samples, Qualitative analyses (e.g., interviews, videos Descriptive: To describe the characteristics of a group, To estimate the proportion of people who behave a certain way, To make specific predictions or generalizations about the target market Data used is large representative samples, quantitative analysis. Causal research: to test cause and effect relationships. Tested through experiments Experiments include independent (condition X) and dependent (outcome Y) variables Goal: to determine how changes in X cause changes in Y. Must contain a control group

What is post-purchase cognitive dissonance?

Feelings of post-purchase anxiety that results from knowledge of drawbacks of chosen brand and losing benefits of non-chosen brands Remember the jam study! Stronger when: Item is higher priced, consumer has alternatives, and product/service involves a long-term commitment House, automobiles, life insurance, computers, etc. -Marketers often attempt to minimize cognitive dissonance After-sale contact, reassuring letter in the package, warranties, money-back guarantees

Which consumer group tends to show more brand loyalty and makes shopping a family event, with children having a big say in the purchase decision? African Americans Arab Americans Hispanic Americans working class consumers middle class consumers

Hispanic Americans. Although Hispanic consumers share many characteristics and behaviors with the mainstream buying public, there are also distinct differences. They tend to be deeply family oriented and make shopping a family affair—children have a big say in what brands they buy. Older, first-generation Hispanic consumers tend to be very brand loyal and to favor brands and sellers who show special interest in them. Younger Hispanics, however, have shown increasing price sensitivity in recent years and a willingness to switch to store brands. Befitting their youthfulness, Hispanics are more active on mobile and social networks than other segments, making digital media ideal for reaching this segment -Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures include nationalities, religions, racial groups, and geographic regions

An advantage of secondary data over primary data is that: It entails greater control since the data was collected for the current investigation at hand. It is faster and easier to acquire than primary data. It is more up-to-date than primary data. It uses more precise levels of measurement than primary data. It fits better with current research needs than primary data.

It is faster and easier to acquire than primary data. Secondary data can usually be obtained more quickly and at a lower cost than primary data. Also, secondary sources can sometimes provide data an individual company cannot collect on its own— information that either is not directly available or would be too expensive to collect.

What is culture and its impact on consumer behavior? Why is it so important?

Learned set of meanings, rituals, norms, and traditions that are shared among members of an organization or society Content Beliefs, attitudes, goals, values, behaviors, customs Cultural icons (books, music, buildings, brands) Language Country, city, company, classroom, time periods, etc. Power is in its pervasiveness - taken for granted!! *Can affect ALL aspects of consumer behavior Expectations of product characteristics Perception of product benefits Views of morality, ethics

A current trend in the United States involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients. self-concept subculture lifestyle personality life-cycle

Lifestyle. People coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a person's pattern of living as expressed in his or her psychographics. It involves measuring consumers' major AIO dimensions—activities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). Lifestyle captures something more than the person's social class or personality. It profiles a person's whole pattern of acting and interacting in the world

Google Trends is an example of __________ data. causal secondary explanatory mass-generated primary

Secondary. Secondary Data Data not collected for the problem at hand but for some other purpose Collected before or in place of primary data Primary Data New data collected specifically for the problem at hand Collected by the researcher -Secondary data can usually be obtained more quickly and at a lower cost than primary data. Also, secondary sources can sometimes provide data an individual company cannot collect on its own— information that either is not directly available or would be too expensive to collect. *Use secondary data first then turn to primary.

What didn't Red Lobster anticipate when they launched the All-You-Can-Eat crab legs promotion i? They would run out of their signature biscuits. Their employees would be overworked and quite in droves. Their customers were capable of eating a lot of crab legs. There would be a Listeria outbreak. They would cannibalize sales from other restaurants owned by Darden Restaurants, Inc.

Their customers were capable of eating a lot of crab legs. Average ate 24 crab legs, would break even at 10. Disaster had they done basic marketing research to begin with. Need to learn information about consumers. Good marketing information enables a lot. Understand Consumer Needs in order to Create Value for Customers

A defining characteristic of nonprobability samples is that: -Each person has a nonzero chance of being included in the sample. -Results are generalizable from the sample to the population. -They are more representative of the population than probability samples. -They involve personal judgment in the element selection process. -All of these responses apply.

They involve personal judgement in the element selection process. -Using probability samples, each population member has a known chance of being included in the sample, and researchers can calculate confidence limits for sampling error. But when probability sampling costs too much or takes too much time, marketing researchers often take nonprobability samples even though their sampling error cannot be measured. Nonprobability: Convenience sample, Judgement sample, quota sample.

A man weighs 200 lbs. He steps on a scale five times and receives the following weights: 200, 160, 190, 200, 155. Based on what we discussed in class, this scale would be considered: Reliable, but not valid Not valid or reliable Valid and reliable Valid, but not reliable Biased, but systematic

Valid but not reliable. See above.

Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is ________. when they buy what consumers buy why they buy where they buy how and how much they buy

Why they buy. Marketers can study actual consumer purchases to find out what they buy, where, and how much. But learning about the whys behind consumer buying behavior is not so easy—the answers are often locked deep within the consumer's mind. Often, consumers themselves don't know exactly what influences their purchases.

Which of the following is not a form of mechanical data collection? Surveys Eye-tracking cameras People meters Checkout scanners Neuro-marketing

Surveys. Mechanical Instruments: People meters Checkout scanners Eye-tracking cameras Neuro-marketing

What are systematic and random error?

Systematic Error affects the measurement in a constant way Personality, response styles, culture, method of administration can all bias measurement in systematic ways Random Error affects the measurement in irregular ways Mood, state of health, fatigue, ambiguity of question wording can all bias measurement at random

________ are groups to which an individual wishes to belong, as when a young basketball player hopes to play someday in the NBA or WNBA. Dissociative groups Aspirational groups Subcultures Reference groups Membership groups

Aspirational Groups. Groups that have a direct influence and to which a person belongs are called membership groups. In contrast, reference groups serve as direct (face-to-face interactions) or indirect points of comparison or reference in forming a person's attitudes or behavior. People often are influenced by reference groups to which they do not belong. For example, an aspirational group is one to which the individual wishes to belong, as when a young basketball player hopes to someday emulate basketball star LeBron James and play in the NBA.

What is the difference between data and information?

Data - the raw facts, recorded measures of certain phenomena Information - transformed and organized facts in a form suitable for managers to base decisions

What is normative social influence?

Definition: consumers comply to others' requests in order to be liked and accepted by them. Reciprocity: Definition: We feel obligated to repay those who have provided us with something. Free gift or favor -Door in the face technique First make a large (unrealistic) request, then a small one. People feel bad saying NO to the large request, so they agree to the small one.

In the famous case in the 1980's, Coca-Cola introduced New Coke after conducting extensive research. The failure of New Coke was largely due to: personality and presentation differences uneven pay among researchers poor definition of the research problem late and occasional erroneous findings having too many different types of research objectives

Poor definition of the research problem. -Coke's lesson: Don't tamper too much with an already well-established and successful brand Problem: not the taste, but consumers' emotional connection with the brand Poor problem definition led to disastrous results

What are further differences between probability and nonprobabilty samples?

Nonprobability Sample A sample that relies on personal judgment in the element selection process Results are not generalizable from the sample to the population Probability Sample A sample in which each target population element has a known, nonzero chance of being included in the sample Results are generalizable from the sample to the population

What types of data are best for each of the three types of research?

Observational research, ethnography, depth interviews, and focus groups good for EXPLORATORY research Deep understanding of small sample Surveys good for DESCRIPTIVE research Generalize from sample to population Experiments good for providing evidence of CAUSATION

What is ethnographic research?

Observations + Depth Interviews. involves sending trained observers (anthropologists) to watch and interact with consumers in their natural environment Beware Hawthorne effect: behave different when being observed.

What are some types of needs?

Physical Needs Psychological Needs Need for Affiliation/Love/Belonging (willing to pay more when felt excluded) Need for Uniqueness Need for Status Need for Power/Control Utilitarian Needs (functionality) Hedonic Needs (style/fun)

Which of the following statements is true regarding social classes? -People are relegated to a permanent social class in the United States. -Lines between social classes in the United States are fixed and rigid. -Social class is determined by income alone. -Social classes show distinct differences in how much they care about appearance and body image. -Wealth and income are more critical than occupational prestige in measuring social class.

Social classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Social scientists have identified seven American social classes: upper upper class, lower upper class, upper middle class, middle class, working class, upper lower class, and lower lower class. Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables. In some social systems, members of different classes are reared for certain roles and cannot change their social positions. In the United States, however, the lines between social classes are not fixed and rigid; people can move to a higher social class or drop into a lower one. Marketers are interested in social class because people within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing, home furnishings, travel and leisure activity, financial services, and automobiles.

Validity is -equal to the true score plus systematic error divided by random error. -the degree to which a measure obtains similar scores across time and respondents. -equal to the true score plus the systematic error. -the degree to which a measure is measuring what it is supposed to measure. -concerned with the relationships of random error with systematic error.

the degree to which a measure is measuring what it is supposed to measure. -Validity ("correctness") The degree to which a measure is measuring what it is supposed to measure As systematic and/or random error increases, validity of a measure decreases Reliability ("consistency") The degree to which a measure is consistent across time and respondents